Look up any new car on the internet and you’re likely to see something about its ‘green’ credentials. We are more concerned than ever about the environment and electric cars are becoming more common. While manufacturers have worked hard to minimize opposition, reduce range anxiety, and address the “quiet” issue, most electric or hybrid cars command a high price tag. So how does the world’s first mass-market electric car, the new Nissan LEAF, compare?

The Nissan LEAF went on sale in the UK in February 2011 priced at £28,350. Take away the £5,000 government grant, which was introduced in January to encourage motorists to go electric, and the price dropped to £23,350. The Nissan LEAF is currently being built in Japan and currency fluctuations recently caused the price to rise by £2k to £25,990 including subsidy).

Fortunately, the price of the Nissan LEAF will drop significantly when production moves to the UK. Nissan’s Sunderland factory will start making batteries for the LEAF in 2012 and full production is expected to begin in 2013. Nissan has said the price will drop below £25,000, but is this enough?

The LEAF currently costs nearly £10,000 more than its equivalent petrol and diesel rivals; the LEAF’s biggest rival, the Toyota Prius, costs less than £22,000. The savings that can be achieved by switching from fuel to electric is the biggest selling point of an electric car. Originally, the AA estimated that the LEAF would cost just 0.3p per mile, based on home charging. They later said it would cost more than 2p per mile as the 0.3p was based on a low nightly electricity rate. Based on 0.3p per mile, you would save £1,500 a year if you drove 10,000 miles and therefore could recoup the extra money you paid for the car in 3 years, which is unlikely if you pay 2p per mile. Since many people like to trade in their car every 3-5 years, there is a chance that you may not get your money back.

There are other bonuses though, the Nissan LEAF is exempt from London road tax and congestion charge. Road tax for a Nissan Qashqai in Cardiff, for example, would cost £245 a year. Now that the road tax is determined by CO2 emissions and the type of fuel, although many other “green” cars, not necessarily electric, are also tax-free, such as the Fiat 500 TwinAir and the Ford Fiesta Econetic.