EV tops RACQ’s most affordable car rankings for the first time

The BYD Atto 1 electric hatch is the most affordable vehicle to own and run in 2026, according to the Royal Automobile Club of Queensland (RACQ), and could save motorists as much as $1000 a year compared with the cheapest petrol model.

It’s the first time an electric vehicle (EV) has been named the cheapest to own and run by RACQ, with the Royal Automobile Club of Western Australia (RAC WA) also ranking the Atto 1 as the cheapest small passenger car in its annual running costs report published this month.

However, RAC WA’s figures put the petrol-powered MG ZS Vibe small SUV slightly ahead of the Atto 1 overall.

The BYD Dolphin electric hatch topped the RAC WA rankings last year.

RACQ also found the electric Toyota HiLux SR5 BEV to be cheaper to own and operate overall than a Ford Ranger Wildtrak diesel over five years.

“When you add purchase price, loan repayments and fuel or charging costs, EVs and plug-in hybrids are becoming a much stronger proposition for motorists,” said Dr Ian Jeffreys, RACQ Principal Economic and Affordability Specialist, in a statement.

“However, we know a cheap car isn’t always the right car. Motorists should still do their homework on safety, security and suitability before making a decision.”

According to the 2026 RACQ Vehicle Operating Costs Report, the entry-level BYD Atto 1 Essential is the most affordable vehicle available in Queensland to own and operate, excluding current promotional pricing which would lower its ownership cost even further.

The report calculated the Atto 1 Essential costs an average of $751 per month, including $54 in monthly charging costs, to own and run over five years.

This was calculated using its $23,990 list price, which the report put at $26,354 on the road, and doesn’t factor in its current promotional price of $19,990 drive-away.

Both the RACQ and RAC WA figures cited here are based on a private buyer using conventional finance over five years, and cover loan repayments on the initial purchase, scheduled servicing, and annual registration and insurance fees for that state.

They also include fuel or electricity, whether that's petrol, diesel, electricity or a combination, to run the vehicle for 15,000km per year.

For comparison, local factors see the same Atto 1 Essential cost $888 to own and run each month in WA, around $137 more than in Queensland.

The Atto 1’s $45,037 total cost over five years compares with $50,038 for the cheapest petrol model in the RACQ report, the Chery Tiggo 4 Urban small SUV.

Despite a lower purchase price of $23,990 drive-away before any discount, the RACQ says the Tiggo 4 Urban costs a private buyer $834 per month to finance and run over five years, with a monthly fuel bill of $178.

This gives the Tiggo 4 an annual ownership cost of $10,008 against the Atto 1’s figure of $9007.

In WA, the Tiggo 4 costs around six cents a month more than the petrol-powered MG ZS Vibe to own and run, so it misses out on the same status there.

Based on RACQ’s figures, all three models are cheaper to own and run than its 2025 winner, the Suzuki Swift Mild Hybrid hatchback, which last year was calculated to cost $874 monthly for a total of $52,468 over five years.

The Swift also led the RAC WA rankings in 2024, before the Dolphin took the top spot in 2025.

The reports compare ownership and running costs across a range of vehicle types, with RACQ assessing 85 models across categories including passenger cars, SUVs, and 4x2 and 4x4 utes.

RACQ attributed the improving ownership affordability of EVs to lower purchase prices and increased competition, with conventional hybrids (HEVs), plug-in hybrid electric vehicles (PHEVs) and battery-electric vehicles (EVs) claiming a growing share of the market. EVs accounted for almost one in four new-vehicle sales in August.

The Tesla Model Y became the first EV to top monthly sales when it shot to the top spot in May 2026, a feat it repeated in June and August.

The RACQ report also notes that current fringe benefits tax (FBT) exemptions for eligible EVs under a novated lease can lower ownership costs further. Under announced changes from April 1, 2027, the full exemption will be restricted to eligible EVs valued at $75,000 or less, meaning the Atto 1 will retain its eligibility after that date.

The best-selling model in Australia for the past three years, the Ford Ranger, was also part of the RACQ report.

RACQ evaluated the premium Ranger Wildtrak dual-cab variant, fitted with the outgoing 2.0-litre bi-turbo diesel engine which was axed from the lineup earlier this year.

Using conventional finance, RACQ said the Ranger costs $2122 to own and run monthly, compared with $2062 for the Toyota HiLux SR5 BEV over five years.

In WA, the rankings were reversed, with the Ranger found to cost $2146 each month, versus $2239 for the HiLux BEV.

While it was found to be cheaper to buy and run than the Ranger Wildtrak in Queensland, the electric HiLux still turned out to be more expensive to own than the 48V mild-hybrid diesel HiLux Rugged X dual-cab, at $2020 monthly in Queensland and $2080 in WA.

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