Peugeot iOn running costs

The Peugeot iOn will cost very little to run, if it spends most of its life in town

Once upon a time, the iOn was almost comically expensive, but happily those days are gone. Now, the single model costs just over £20,000, but it’s eligible for the £3,500 grant from the government for plug-in vehicles, which makes it rather more tempting.

That puts it pretty much on a par with the Renault ZOE, but that’s a more modern design, with more space inside and – perhaps more importantly – a considerably longer range. Equally, cars like the BMW i3 and Nissan Leaf aren’t that much more expensive.

On the other hand, the iOn does have very low running costs thanks to its zero CO2 emissions – although, naturally, all electric cars have the same benefits. For instance, it’s exempt from the London Congestion Charge and road tax, plus it incurs BiK company-car tax at the lowest rate.

On top of that, some places offer free or cheaper parking for electric cars and there are proposals to expand the number of places that do.

Peugeot iOn insurance group

The single version of the iOn sits in insurance group 20, which looks pretty steep. By contrast, all the versions of the Renault Zoe are groups 15 or 16, the Volkswagen e-up is in group 10, and even the more expensive BMW i3 is in group 21.

Warranty

The iOn is covered by the same three-year/60,000-mile warranty as every new Peugeot. That’s identical to the cover you get on a Volkswagen e-up, and the only difference between the Peugeot cover and what you get on a Nissan Leaf or BMW i3 is the mileage limit. The only companies that significantly better Peugeot are Kia and Hyundai, with seven and five years’ cover, respectively.

Servicing

Peugeot has a network of specialist electric-car dealers, rather than the whole network being able to sell and service the iOn. At the time of writing, just under 40 dealers from the full network of hundreds were able to sell and service an electric car.

An iOn needs servicing every year, which is very much par for the course with electric cars. There isn’t much to service, so it can work out cheaper than a petrol or diesel. However, while Peugeot does offer fixed-price servicing packages, they’re only available for cars three or more years old. 

Road tax

One of the simplest things about running an iOn is the annual bill for VED. Because this is a zero-emissions electric car, it costs nothing in road tax. That immediately saves you £130 over even an alternative-fuel car. And, better still, thanks to its list price of just over £20,000, there’s no risk of adding enough options to tip the price over £40,000, which would incur an annual surcharge of £310. 

Depreciation

This is one of the iOn’s major flaws: it doesn't hang to its value very well at all. In fact, it only retains about a fifth of its value over three years and 36,000 miles. Even by the standards of electric cars, that’s very low, and it suggests it makes much more to sense to buy a used iOn than a new one.