EV takes affordability crown in RACQ first
As volatile fuel prices continue to put pressure on household budgets, RACQ’s 2026 Vehicle Operating Costs Report found battery electric and plug-in hybrid models were the cheapest to own and operate across the light passenger, medium SUV, medium passenger and large SUV categories.
The report considered the purchase price, a five-year loan, registration, insurance, maintenance and fuel or electricity costs of 85 new vehicles on the Australian market*.
The BYD Atto 1 came in as the most affordable vehicle costing $45,000 over five years to own and operate – that's $751 per month, including just $54 in charging costs.
For those who prefer petrol, the Chery Tiggo 4 was the most affordable to own and operate, with a five-year cost of $50,000 or $834 per month.
RACQ Principal Economic and Affordability Specialist Dr Ian Jeffreys said the findings mark a turning point for motorists, with plug-in hybrid and battery electric vehicles accounting for almost 34.5% of Australia’s new vehicle market in September.1
“Electric vehicles have been closing the affordability gap with petrol cars for several years, but for the first time, some are now cheaper to own and operate than their petrol or diesel counterparts,” Dr Jeffreys said.
"This is largely due to an influx of EVs into the new car market, boosting competition and driving down prices.
“However, the car with the cheapest price tag isn’t always the most affordable, which is why we’ve broken down fuel, servicing, insurance and other costs to give motorists a clear picture of the true cost."
In the medium SUV category, the BYD Sealion 5 Plug-In Hybrid took out top spot at $61,500 over five years, with the GWM Haval H6 Lux the most affordable petrol option at $66,800.
A diesel vehicle claimed poll position in the 4x4 ute category with the LDV T60 Max taking out the top spot at $93,500 over five years, followed closely by the plug-in hybrid BYD Shark 6 at $94,300.
“When you add purchase price, loan repayments and fuel or charging costs, EVs and plug-in Hybrids are becoming a much stronger proposition for motorists,” Dr Jeffreys said.
“However, we know a cheap car isn’t always the right car. Motorists should still do their homework on safety, security and suitability before making a decision.”
Read the full Vehicle Operating Costs Report.
*Total costs were calculated using registration, RACQ Insurance, fuel, servicing, and tyres based on 15,000 kilometres/year for five years. Loan repayments over 5 years if purchase was fully financed through a conventional car loan.
1 Figures from Electric Vehicle Council
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