It’s a widely held myth that ‘green’ driving is more expensive than regular cars with petrol or diesel engines. It’s easy to see the reasoning behind it: everyone’s still driving cars with regular engines - and this ‘green’ technology is all relatively new - so surely it must be more expensive?

Not necessarily. Green driving could save you a lot of money in the long run. Think of it as a green investment: your initial outlay on a green vehicle (or an engine conversion) may be higher than with a petrol/diesel-fuelled car, but in terms of fuel and tax costs, the savings can be huge.

Lower fuel costs

With petrol and diesel prices at an all-time high, it’s making ever more sense to go green and benefit from the lower cost of alternative fuels. At the time of writing, the average UK prices (per litre) for the three main types of fuel are as follows:

LPG (Liquid Petroleum Gas) is approximately 50% the price of unleaded petrol, and even less compared to diesel - so the effect on your pocket could be much bigger than most people think.

In terms of miles per gallon, LPG does not quite match up to petrol or diesel. But because it costs half as much, mileage per pound spent is significantly higher. On average, it’s estimated that LPG vehicles cost 30-40% less to run than the petrol equivalent.

Another option is electric cars, or hybrid vehicles which comprise both a standard petrol/diesel engine and an electric motor. Currently, electricity costs significantly less per mile than any other fuel: many electric cars cost as little as 1-2p per mile to run. Not only that, but many electric car batteries recharge slightly when the car brakes - taking your costs down even further.

Consider that the average cost per mile on an average petrol car consuming 30mpg is closer to 20p, and the benefits are very obvious.

Lower tax

Because they are less polluting, green cars are placed in the lower tax bands, offering savings of up to £400 when compared to the most polluting cars.

Cars that emit less than 100g/km of CO2 are completely free of road tax - although the number of cars that actually meet this criteria is minimal. Electric cars release no emissions, but very few petrol, diesel or even LPG-powered cars meet the criteria.

In reality, LPG tends to release around 10-15% less emissions than a standard engine - which could easily take you down by one or two tax bands.

Exemption from congestion charges

Low-pollution and alternative fuel vehicles are exempt from the congestion charges currently in place in London, saving you up to £1,600 a year if you are a regular commuter. It’s reasonable to assume other cities planning a congestion charging scheme will follow suit, so if you are in one of these areas, a green car is a wise investment.

Increased engine life

LPG burns cleaner and therefore leaves less deposit in your engine, greatly increasing its lifespan compared to petrol and diesel engines. Although this isn’t a day-to-day saving, LPG engines are less likely to need servicing, so you will find yourself shelling out less after your MOT each year.

Electric car batteries do not have any moving parts, so they are less likely to suffer mechanical faults like regular engines. However, like any rechargeable battery, their effectiveness diminishes over time. Most car batteries are estimated to last around three to five years - so if you are expecting to keep your car longer than this, expect a potentially costly battery replacement.

Future resale value

With green energy becoming more of a priority amongst the public and the Government, it’s likely that petrol and diesel engines will become less popular on our roads. It makes sense that a few years down the line, your green car may well have some added selling power, as more drivers look to replace their aging petrol and diesel vehicles with a more modern technology.

This article was written by Melanie Taylor of financial solutions company www.ThinkMoney.com