By Arran Turner, Founder of Sorbus Finance
Every driving instructor I speak to right now is dealing with the same question, whether they’ve said it out loud or not: do I make the switch to electric, and if so, when? Electric car finance might seem no different to financing ICE engines, but working with lenders who understand the depreciation of these vehicles can make significant differences in finance agreements.
It’s not a straightforward decision. On one hand, fuel prices have been all over the place — petrol has climbed to around 158p per litre and diesel beyond that, making the day-to-day cost of running a teaching car genuinely painful for anyone covering high mileage. On the other hand, buying an electric vehicle still carries a significant upfront cost, and for a self-employed instructor running a tight margin, that’s not a decision you make lightly.
So what does the consensus actually look like? And has the ongoing instability in fuel prices been enough to shift opinion? Here’s my honest take on where things stand.
The Fuel Price Problem Isn’t Going Away
Let’s start with the elephant in the room. Fuel prices in the UK have been volatile for years, but the situation has sharpened again in early 2026. According to the RAC, petrol has recently reached 158p per litre, with diesel climbing past that. For a driving instructor covering 200 to 300 miles a week in stop-start urban driving — one of the least fuel-efficient patterns possible — that adds up quickly.
Research from a few years back showed that fuel cost spikes were already forcing around 87% of instructors to raise their hourly lesson rates, and nearly a third were considering leaving the profession altogether because margins had become so tight. That data is from a particularly rough period, but the underlying dynamic hasn’t changed. When your vehicle is both your office and your primary business cost, what you spend at the pump feeds directly into your income — and the learner’s bill.
For those already operating electric vehicles, the picture looks quite different. As one industry publication recently put it, EV-using instructors are simply not experiencing the same sharp daily cost increases as their petrol and diesel counterparts. That gap is real, and it’s growing.
What Do Driving Instructors Actually Think About EVs?
Opinions in the driving instructor community are genuinely split — and I think it’s worth being honest about that rather than pretending there’s a clear consensus where there isn’t.
The hesitation is real and it’s understandable. Upfront purchase costs remain the most cited barrier. Research consistently shows that the majority of drivers — professional or otherwise — still perceive electric vehicles as more expensive to own, even when the running cost savings are factored in. For a self-employed instructor who has historically bought a used petrol hatchback for a few thousand pounds and run it into the ground, the prospect of financing a new EV at two or three times that cost feels like a leap.
Range anxiety comes up too, though arguably less justifiably for most instructors. Teaching routes are typically local, often circular, and well within the range of any modern EV. Most current electric cars comfortably cover 200 miles on a charge, and for an instructor doing back-to-back lessons in a familiar area, that’s rarely a genuine constraint.
What has genuinely shifted is the direction of travel among larger driving schools. The AA Driving School has already introduced electric vehicles to its fleet, and learner demand is pointing clearly toward EVs too. Research from Gridserve found that nearly half of new learners said they would be more likely to take lessons in an electric vehicle. That’s not a number independent instructors can afford to ignore forever.
The Financial Case: Does It Actually Stack Up?
This is where I spend a lot of my time talking to instructors, because the numbers matter and they’re often misunderstood.
The running cost difference is significant. Charging an EV at home on a standard overnight tariff costs a fraction of filling up at the pump — and for an instructor, that saving is compounding across hundreds of miles every week. Add to that the fact that EVs have no clutch (a component that takes a real beating in a teaching car and needs regular replacement), regenerative braking that extends brake life, and generally simpler drivetrains that cost less to service, and the ongoing costs start to look very different from a petrol car.
On the tax side, the government’s EV grant — relaunched in July 2025 — provides up to £3,750 off qualifying new electric vehicles priced below £37,000. That’s a meaningful reduction. For instructors operating through a limited company, there’s also the benefit of 100% first-year capital allowance on EVs purchased for business use, as well as significantly lower Benefit in Kind (BIK) tax rates compared to petrol or diesel equivalents.
The honest answer to whether the numbers stack up is: they often do, but you have to model your specific situation rather than going by gut feel or general headlines about EV costs being high.
The Upfront Cost Problem — and How Finance Changes the Equation
Here’s where many instructors get stuck. The running cost argument makes sense. The tax advantages are real. But when you’re staring at a purchase price that’s considerably higher than what you’d pay for a petrol equivalent, the short-term cashflow reality can override the long-term logic.
This is something I see across all kinds of businesses, not just driving instructors. A decision that makes perfect sense financially over three to five years can feel impossible when you’re looking at what it costs today.
Asset finance changes that dynamic. Rather than buying a vehicle outright — which ties up a large chunk of capital in a depreciating asset — instructors can spread the cost over a fixed term with predictable monthly payments. Hire purchase, finance lease, and contract hire are all options worth exploring, and each has its own tax treatment and ownership implications.
At Sorbus Finance, we work with a panel of over 100 lenders to find the right fit for a particular situation. The right structure for an instructor running as a sole trader will look different from what suits someone operating through a limited company. Getting that right from the start matters — both for managing monthly cashflow and for making the most of available tax efficiencies.
The point is: the upfront cost of an EV doesn’t have to be the blocker it appears to be. Spreading it appropriately often makes the monthly cost of an EV comparable to — or not much more than — a petrol car, especially when you factor in what you’re saving on fuel.
What About the New Pay-Per-Mile Tax?
It would be dishonest not to mention this, because it comes up a lot. From April 2028, electric vehicles will be subject to a new mileage-based excise duty — currently set at 3p per mile — alongside their standard road tax. For high-mileage instructors, that’s worth modelling into any long-term calculation.
The government has been clear that the rate will remain roughly half of the effective fuel duty rate paid by petrol and diesel drivers, so the running cost advantage of electric should remain even after 2028. But it’s a factor worth being aware of, particularly if you’re financing a vehicle over a term that extends past that date.
Frequently Asked Questions: Driving Instructors and Electric Vehicles
Is an electric car suitable for driving instruction? Yes — and in many ways it’s well suited to the role. There’s no clutch to wear out, acceleration is smooth and predictable, and the cabin is notably quieter, which makes communication between instructor and learner easier. The main practical consideration is charging access: if you can charge at home overnight, the logistics are straightforward.
Will my learners be disadvantaged if they pass in an automatic/electric car? Passing in an electric vehicle results in an automatic licence, which restricts the holder from driving manual vehicles. This is worth discussing with learners upfront. However, as more new cars are sold as automatics or EVs, this is becoming a less significant consideration for many people.
Are there specific finance options for driving instructors buying EVs? Yes. Asset finance products — including hire purchase and finance lease — are available to self-employed instructors and can be structured to suit the way you trade. The right option depends on your business structure, your tax position, and your preferences around vehicle ownership at the end of the term.
Does the government EV grant apply to vehicles used for driving instruction? The current grant applies to qualifying new electric vehicles under £37,000. If the vehicle meets the criteria, there’s no reason an instructor couldn’t benefit from the grant, though it’s worth confirming eligibility with the manufacturer or dealer at the point of purchase.
When does an EV start to pay for itself compared to a petrol car? This varies depending on how much you drive, your charging costs, and how you finance the vehicle. For high-mileage instructors charging primarily at home, the break-even point is often quicker than people expect — and the ongoing savings after that point can be substantial.
My Take
The honest answer to whether driving instructors are ready to go electric is: it depends who you ask. There’s genuine hesitation, and it’s not irrational. The upfront cost is real, the regulatory landscape is still settling, and not every instructor has easy access to home charging.
But the direction is clear. Fuel costs are volatile and unlikely to fall significantly in the long term. Learner demand is shifting toward EVs. The government’s incentives, while imperfect, are improving. And the running cost advantages of electric are not theoretical — they’re being felt every week by the instructors who have already made the switch.
If you’re an instructor thinking about whether and how to make the move, I’d encourage you to look at the whole picture rather than just the sticker price. A well-structured finance arrangement can make an EV more accessible than you might think — and the conversation is always worth having.
Want to explore your options? Get in touch with the team at Sorbus Finance for straightforward, independent advice on asset finance for your teaching vehicle.
Arran Turner is the founder of Sorbus Finance, an independent commercial finance brokerage based in Chesterfield, Derbyshire. Sorbus Finance is an Appointed Representative of Moorgate Finance Limited T/A MBN, which is Authorised and Regulated by the Financial Conduct Authority (FRN: 662419).