Electric vehicles have gained massive popularity, and have become a very attractive option for fleet business leasing. With the BVRLA reporting electric vehicles have had a 42% year-on-year growth for Business Contract hire new car orders, it’s clear electric motoring is a promising prospect for business car leasing. That’s why we’ve decided to take a deeper look into the factors driving this rise in popularity and compiled the key advantages of electric vehicles.
Cheaper Fuel
With inflation rising rapidly many business owners have felt the financial impact of rising fuel costs on their fleet operations. The cost of fuelling a car or van can be heavily alleviated when switching your fleet to electric. Whilst it still costs money to charge an electric car or van, it is drastically cheaper and could save hundreds of pounds per year, per vehicle. With running costs of electric vehicles for every 100 miles being between £4-£7 less expensive than petrol or diesel vehicles, making fuel management easier.
However, many may suggest once the cost of installing charging points is taken into account, the overall savings may not be as impressive as they first seem. To counter-act this the UK Government has issued a workplace charging scheme whereby 75% of the total costs of the purchase and installation of EV charge points are covered*.
Tax Savings
In addition to the cheaper cost of fuel, EV’s can save a business money when it comes to Tax. A pure electric vehicle will be exempt from road tax, not only for the first year but for all subsequent years afterward. Likewise, if you operate your fleet in or around the London area an EV would be exempt from any Ultra Low emission charges. This could save your business up to £12.50 a day per vehicle!
Whilst this may not be applicable if you operate your fleet outside of London, other cities in the UK do have clean air zones which may affect your business. Cities such as Birmingham, Bath and Glasgow have clean air zones with other cities plaining to establish them over the coming years.
Low Maintenance
A great benefit of Electric Vehicles compared to conventional vehicles is that, generally, less maintenance is required. An electric vehicle has significantly fewer moving parts when compared to conventional internal combustion engines, meaning there is a lower likelihood of faults occurring. Electric Vehicles also have no engine oil, which needs regular maintenance on a conventional car and have reduced brake wear due to regenerative braking. Together these factors result in less vehicle maintenance overall, which means your fleet of vehicles is on the road for longer.
Good Company Image
When you switch to an electric vehicle you can bolster your brand’s reputation due to the positive connotations attached to EVs. Having an electric fleet highlights your company to be forward-thinking and innovative. Additionally, you can harness your company’s eco reputation, as Ev’s have zero tailpipe emissions and significant reductions in noise pollution.
Free Parking
To nicely round off this top 5 list, we’re highlighting the incentive of free parking. London does offer free, or reduced parking fees in some areas. It can vary greatly across London but some central areas such as Westminster and Islington offer free parking for Evs. If you operate within London this could translate to massive savings.
Still Can’t Decide?
Electric vehicles have a large array of benefits and are increasingly popular, but that doesn’t mean every business is ready to switch. Whilst many Fleet managers are transitioning to an EV fleet, there can be drawbacks such as charging times, miles of range, and charging point infrastructure. At Toomey Leasing Group we understand every business has different fleet needs and we work with you to achieve your fleet’s maximum potential. To find out more about alternative fuels or Ev’s Click Here
*Terms and conditions apply to find out more about the workplace charging scheme Click Here