The sticker price of an electric car still grabs all the attention, but purchase price is just one piece of the puzzle. When you add up fuel, servicing, depreciation, insurance, and registration over 10 years, the total cost of ownership (TCO) paints a very different picture. In many cases, EVs are already cheaper to own than equivalent petrol cars — even before government incentives.
Purchase Price: Like-for-Like Comparison
Comparing equivalent vehicles is essential. A BYD Dolphin isn't competing with a Toyota Camry — it's competing with a Mazda 3 or Corolla hatch. Here's how some comparable models stack up in 2026:
| Segment | Petrol Model | Price | EV Equivalent | Price |
|---|---|---|---|---|
| Small hatch | Mazda 3 Hybrid | ~$35,000 | BYD Dolphin | ~$35,000 |
| Small SUV | Hyundai Kona | ~$35,000 | Hyundai Kona Electric | ~$48,000 |
| Medium SUV | Toyota RAV4 | ~$42,000 | BYD Atto 3 | ~$45,000 |
| Premium sedan | BMW 3 Series | ~$65,000 | Tesla Model 3 | ~$50,000 |
At the budget end, purchase price parity has essentially arrived. The BYD Dolphin matches the Mazda 3 Hybrid on price while offering lower running costs. In the premium segment, the Tesla Model 3 actually undercuts the BMW 3 Series.
Depreciation: EVs Are Holding Value Better
Early EVs depreciated rapidly due to fast-improving technology and range anxiety. That trend has reversed. With strong demand and limited supply of quality used EVs, depreciation rates have improved significantly:
| Vehicle Type | 3-Year Depreciation | 5-Year Depreciation |
|---|---|---|
| Average petrol car | 35–45% | 50–60% |
| Tesla Model 3 | 25–35% | 40–50% |
| BYD Atto 3 / Dolphin | 30–40% | 45–55% |
Fuel Costs Over 10 Years
Fuel is where EVs deliver their most compelling advantage. Based on 12,600km per year and accounting for modest annual price increases:
| Fuel Type | 5-Year Cost | 10-Year Cost |
|---|---|---|
| Petrol (9L/100km) | $11,500–$13,500 | $25,000–$30,000 |
| EV — grid charging | $3,200–$3,800 | $6,500–$8,000 |
| EV — solar charging | $800–$1,200 | $1,600–$2,500 |
Over 10 years, you'll spend $17,000–$27,000 less on fuel with an EV. That's enough to offset a significant purchase price premium — and many EVs no longer carry one.
Servicing Costs Over 10 Years
With fewer moving parts and no oil changes, EVs require less frequent and less expensive servicing:
| Vehicle Type | 5-Year Servicing | 10-Year Servicing |
|---|---|---|
| Petrol car | $4,000–$6,000 | $8,000–$12,000 |
| Electric car | $1,000–$2,000 | $2,000–$4,000 |
Total Cost of Ownership: 10-Year Comparison
Here's the full picture for a medium-sized vehicle driven 12,600km per year over 10 years:
| Cost Category | Petrol (e.g. RAV4) | EV Grid (e.g. Atto 3) | EV Solar (e.g. Atto 3) |
|---|---|---|---|
| Purchase price | $42,000 | $45,000 | $45,000 |
| Fuel / charging | $27,000 | $7,000 | $2,000 |
| Servicing | $10,000 | $3,000 | $3,000 |
| Insurance (10yr) | $18,000 | $20,000 | $20,000 |
| Registration (10yr) | $6,000 | $5,000 | $5,000 |
| Residual value | –$12,600 | –$15,750 | –$15,750 |
| Total 10-Year Cost | $90,400 | $64,250 | $59,250 |
Break-Even Points
How long until the EV's lower running costs offset any purchase price premium?
- No price premium (e.g. BYD Dolphin): Day one — every kilometre saves you money from the start
- $5,000 premium: 2–3 years for grid charging, under 2 years with solar
- $10,000 premium: 4–5 years for grid charging, 3–4 years with solar
- $15,000 premium: 6–7 years for grid charging, 5–6 years with solar
For most Australians buying a new car they plan to keep for 5+ years, the total cost of ownership already favours electric — and the gap is widening every year as more affordable models enter the market.