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A guide to choosing your first electric vehicle

Thinking of ditching petrol for an electric vehicle? The idea of zero emission vehicles appeals to many, here are some things to consider before making the switch.
5 min read
Published on 22 Jan, 2025

As more Australians consider switching to an electric vehicle (EV), it’s time to take a practical look at what that means for you. Buying vs leasing, charging infrastructure, batteries and maintenance are just some of the important considerations when choosing your first EV. 

To buy or not to buyWhether it’s electric or petrol, buying a new car outright is a considerable upfront cost. And while EV prices are becoming more competitive in Australia, outright ownership isn’t your only option. New EVs can be purchased for under $40,000, but these vehicles may not meet your needs in terms of size, range and features. Are you driving long or short distances? Are you in the city or country? Can you charge overnight at home? Are you single, a couple or a large family? The more you need, the higher the price can creep. But with more EVs on the market than ever, you’re likely to find one with the features and price that works for you. 

Subscribe to try

Leasing an EV is one way to test this new technology before making a big commitment. AGL’s EV subscriptions provide a flexible way to get behind the wheel of an EV, which includes standard maintenance, insurance and registration bundled into one monthly payment. You can find the car that suits your needs, swap and try different models and return the car if you decide an EV isn’t right for you.

Insurance Currently, an EV costs more to insure than a petrol car, so consider it as part of the total cost of ownership. According to Drive’s 2023 Ownership Costs survey, insurance costs EV owners on average $661 more per year. This is attributed to higher repair costs and limited availability of specialist technicians to do the work. Still, saving money on running costs could even things out. Resale  If buying, also consider an EV’s resale value. Australia’s second-hand EV market is starting to develop, with early adopters now trading up to newer models and government fleet vehicles expected to go on sale in an effort to increase availability. This may drive resale prices down. There’s also the issue of battery quality when buying a second-hand EV – and private sale makes this difficult to test.

Incentives and rebates 

Many Australian states and territories have their own initiatives and incentives to encourage EV adoption including registration and stamp duty discounts, rebates and low-cost loans. Here’s a handy roundup from the Electric Vehicle Council. While the ATO’s electric cars exemption is a nationwide fringe benefits tax (FBT) exemption, worth looking into for businesses and employees. 

Running and maintenance

Whether you choose to buy or lease, running the car is the biggest change new EV users will encounter. The Electric Vehicle Council estimates that the average Australian drives around 12,000km per year. This costs around $2,500 in petrol or around $500 in electricity if charged at home. And there’s more potential savings if the EV user has solar or off-peak tariffs. AGL’s Night Saver EV plan charges a discounted rate when charging your EV between 12am and 6am. You can search and compare vehicles using the Green Vehicle Guide to see how much switching from petrol to electric could save you. It’s worth noting that current higher EV insurance costs would offset some of these savings, so check with your insurer to get a more accurate snapshot of overall ownership costs.

Drive’s 2023 Ownership Costs survey found that EVs are cheaper to service by an average of $465 over the first three years. The Electric Vehicle Council puts this down to EVs having less moving parts, so there’s less components that require servicing and the length of time between services is usually longer. It’s estimated EV owners can save hundreds per year on repairs. But not all mechanics or even dealer service centres are equipped for EV servicing, so ask those questions before buying or leasing your first EV. 

Public charging of an electric vehicle

Battery power

The battery in your EV is what makes it go, but what else is there to know? Car brands often use terms such as ‘lithium-ion’ and ‘LFP’ to describe their batteries and they come with pros and cons. The difference is their chemistry makeup and this can affect the range, performance, weight and production costs. 

The lithium-ion family includes nickel manganese cobalt (NMC) and nickel cobalt aluminium (NCA) batteries. LFP stands for lithium iron phosphate, which you’ll find in cheaper, entry-level EVs.

LFP is the cheapest because it doesn’t have the expensive nickel and cobalt minerals. No cobalt also means LFPs have a more socially conscious supply chain and a longer lifespan. But they are heavier with lower energy density – so they’ll generally have less range and take a bit longer to charge. 

A lot of longer-range or performance-based EVs on the market have NMC or NCA batteries. NMCs pack more energy in the volume of each cell, are smaller and have better charging performance. But they have a shorter life cycle and can reach thermal runway quicker – which is a safety risk. NCAs share the advantages and disadvantages of NMCs, but without the manganese. They are less common.   

How long do they last? 

Considering battery degradation is important, but compared to a petrol car the lifespan may actually be similar. Like all batteries, EV batteries degrade over time, but according to the Electric Vehicle Council, most EVs are sold with 8 to 10-year warranties on their batteries, while electric motors and expected to last around 15 years (or 180,000-200,000 km). Other research suggests that EV batteries can last closer to 20 years.  

The rate of degradation can be affected by things like the battery chemistry, temperature, driving behaviour and charging patterns. Some things you can do to reduce degradation:

  • Avoid charging to 100% or letting the battery run completely flat
  • Avoid extreme heat and cold temperatures when parked
  • Save DC quick charging for when you really need it
  • If you’re not driving the car for a while, don’t fully charge it

Where will you charge it?

Having somewhere to charge your EV could be the deciding factor in making the switch, so consider how charging fits into your daily life. 

An at-home charger is the most ideal scenario for EV users, to take advantage of charging off-peak for cheaper electricity costs or solar if you have it. It also means your car will always be ready to drive. AGL’s home charging solutions and plans like the Night Saver EV plan can help with this.

More apartment buildings are including EV charging infrastructure in secure parking lots, so both owners and renters can have the option of driving an EV. Your workplace is another spot you could look at charging your EV, with charging stations becoming part of many organisations’ sustainability plans.  
And the public EV charging infrastructure continues to grow and improve, with more regular and high-speed charging stations installed around Australia every year. Plugshare is a great independent EV community that allows you to search for chargers via location and type.

With some consideration and preparation, switching to an EV is one way you can get on the road to a more sustainable future. Try an AGL subscription to find out which EV is right for you. 

Discover more about AGL's electric vehicle offering, including subscriptions, home charging options and energy plans.

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