Is it time to flick the switch and go electric with your fleet?
The EV revolution is undoubtedly here and it has taken many companies by surprise. The change in the market has created many questions for companies looking to add electric vehicles to their fleets, including regulations and incentives, charging points and when to make the move into the EV world. Vehicle leasing specialist Leasepoint helps customers, new and old, understand the electric vehicle market and make the right decisions for their companies. In this article Leasepoint founder Roger Whittaker answers some of the basic questions about the EV revolution.
Why and when should I take on electric vehicles?
• There are many advantages to be gained by adding electric vehicles to your fleet, although ultimately the decision is fundamentally about choosing vehicles that are fit for purpose, that match your needs, while considering the whole-of-life cost of the vehicle.
• Finding a vehicle that matches your needs is key decision that is becoming easier. Many electric cars now have a range of well over 200 miles, which makes them viable for many types of drivers, and the choice is growing every month as the major brands release new models. The days when a Tesla was the only consideration are over, and there are enticing options across multiple segments. However, there are some limitations, where in certain remits, a plug-in hybrid, or even an efficient diesel, could provide a better solution. This is generally when there is a need for very high, or low mileage, that crosses a point when electric vehicles no longer generate savings compared to the cost of fuel at the pump. Leasepoint is happy to discuss your individual requirements and offer options, taking into account personal and business taxation, and overall costings.
• There are many situations where an electric vehicle can provide businesses with a reduction in whole-of-life costs, with ever-expanding options, demand ramping up and government grants available subject to value. A typical diesel or petrol car costs about 14p per mile, compared to 4p per mile for electric charging, generating a saving of £100 per 1,000 miles, or for a driver travelling 30,000 miles a year, £3000 per annum, and that’s just the fuel saving. Add to this the tax savings and reductions in maintenance cost and there is a potentially tangible saving to review.
• And when should you start to go electric? Simply put, If you have not done so already, then now is a great time to start looking at such a move.
What are the regulations and incentives that are pushing EV deployment?
• There are a number of key regulations and incentives driving the take up of electric vehicles, including the proposal by the UK Government to ban the sale of new petrol and diesel cars, beginning in 2030 (2032 in Scotland).
• Starting this year, there is an EU and UK-wide target for new cars to reduce emissions to an average of 95 g/km C02.
• There is a roll out of low carbon emission zones in many cities across the UK, which started in London with the ultra-low emission zone (ULEZ) on April 8th 2019, with several other cities following suit. Oxford will introduce a zero-emission zone (ZEZ) in August.
• The personal tax (BIK) rate is only 1 per cent in the 2021/22 tax year, rising to 2 per cent for the following two tax years, providing long-term certainty. This is driving a large-scale return to company cars after a movement to car allowances following the rise in company car tax in recent years on petrol, diesel and self-charging hybrid cars.
• There are many benefits for businesses, such as 100 per cent first-year allowance, no car fuel benefit charge, reduced national insurance contributions, as well as the ease of navigating the UK's various and growing congestion charges and low emission zones.
• There is a £2500 electric car grant, up to a ceiling value, which along with the negotiated fleet discounts that Leasepoint has with many manufacturers, means there are lots of well-priced electric vehicles to lease.
Charging points and range worries
• There are more than 42,000 charge point connectors across the UK in about 15,500 locations. That’s more public places to charge than there are petrol stations. Seven thousand charge point connectors were added to the UK's infrastructure in 2020, and there will be more still by the end of this year.
• Many new electric cars have a range of more than 200 miles, and with smartphones, apps, and maps it’s easy to find a charging point and takes no time to slot in a convenient stop on longer journeys.
• Companies likes Shell are investing heavily to support the electric needs of business fleets, so there is plenty of choice when it comes to making arrangements for your fleet energy needs.
• Sometimes an electric car will not be right for your remit, and there are pros and cons. Any major shift like this will bring concerns as drivers adjust to new habits and needs, but often it can be a simple and cost-effective change.
Leasepoint is here to help
Have you taken on any electric vehicles yet? Leasepoint can help. We supply businesses and individuals throughout the UK with keenly-priced vehicle leasing on all cars and vans. We specialise in working with business fleets that run between 1-100 vehicles. We can supply any car or van at highly-competitive rates with our panel funding approach, along with the discounts we have across all of the major manufacturers.
Over and above the market leading rates we aim to provide you with, it is our focus on supplying the highest levels of customer service that has helped us to become a trusted and well-established car and van partner to a range of businesses and individuals. In our 12 years of trading we have grown to supply a number of well-known international businesses and hundreds of small and medium-sized enterprises. You can check out our latest Feefo ratings here: Leasepoint Reviews | http://www.leasepoint.co.uk reviews | Feefo
If you need help transitioning to an electric vehicle, or would like a quote on any car or van, please contact us at email@example.com or call 01270 620 760. We are happy to provide you with advice, a no obligation quote and a hassle-free and friendly service.