Your E-Car

Why going electric is the best thing you can do for your company car fleet

Why going electric is the best thing you can do for your company car fleet
Posted On By Ben Fleetwood

Electric vehicles have been plagued by misconceptions pretty much since they hit the road, add company vehicles into that equation and you will find the confusion and incorrect information grows (to use our word of the year) exponentially.

Knowing where to start, and finding out how your company can benefit are just some of the areas challenging business owners. We are going to have a chat with Ben Fleetwood, owner of ‘Your E-Car’ an electric car leasing specialist and bust some of these myths.

Electric cars are really expensive right?

You have to put your accountant head on for this. Yes, the P11D value of an electric car is higher than a petrol or diesel. But not by a huge amount – using a VW Golf as an example, the close electric equivalent, the ID.3 is valued at £36975 versus £32570 for the Golf. The running costs however, have stark differences in favour of electric. The average Golf costs £59.90 to fill up, your ID.3 just £8.68 for a full charge! That’s a cost of 10p per mile in fuel versus 3p per mile in electricity. If you are using a tank of fuel a week you can see how those savings are now mounting up.

What about company car tax though? That’s really high isn’t it?

Correct – for petrol or diesel cars, company car tax is now a huge burden to the tax payer. Using our Golf as an example again – a 20% rate tax payer would pay £189.99 company car

tax monthly....for a 40% rate tax payer it climbs yet higher still - £379.98!
HOWEVER – the government really really wants us all to start driving electric cars, so the tax on the electric ID.3 is just £6.16 per month for a 20% rate tax payer or £12.33 for a 40% rate tax payer. These are HUGE savings, and a massive bonus for all kinds of reasons – being able to once again give a company car as an incentive, not a burden, as it has become in more recent years, is a great opportunity to stand out as an employer.

Is it really cheaper to fill up an electric car – it must use loads of electricity?

Not at all!! Your average petrol/diesel car doing around 1200 miles per month will cost you around £125 in fuel. The equivalent electric car will do the same for around £40 per month. Not only are you saving your company money, but you are incentivising your employees with an amazing benefit that will save them money.

Electric cars can’t do long journeys though can they?

Again – not true! The ID.3 has a range of 262 miles when fully charged. If you are doing that many miles in a day you will be doing nearly 100,000 miles per year. No one is doing that – only long haul lorry drivers! The vast majority of users will be well within that limit.

Don’t we need specialist charging points?

No – you can charge your electric vehicle from a normal plug socket, so if you don’t have a charging point at home, you can simply plug in to an extension cable and just leave overnight. Contrary to popular belief, once the battery is full, your car won’t draw any more electricity just because it is plugged in, once its full, its full.

Its also worth remembering that there is currently a grant available to install a charging point at your home. We all know that electric vehicles are the long term aim, so why not take advantage of this offer while it is around?

Do our customers really care if we are reducing emissions?

The answer to this seems to be a resounding yes. Ethical and environmentally sound decision making in businesses has always been important, but is even more so now – consumers are very savvy nowadays. Yodel has just commissioned research that has found the 53% of 18-24 year olds would prioritise purchasing from a business that was committed to reducing emissions, and I can only see this number increasing as time goes on.

Aren’t stocks of electric cars really limited though?

This used to be the case, but the situation has massively improved. The vast majority of car makers now have affordable electric cars in their fleets, ranging from small hatches, to company estates, to SUVs, MPVs and 4x4s. You can even buy an electric Ford Mustang or a Porsche! Availability and product range is most definitely NOT a problem nowadays!

It’s hard to argue with these facts – electrical vehicles are cheaper and greener whichever way you look at it. If you were asked to reduce your company’s costs, incentivise your staff AND please your customers, you would not think twice would you?

If you would like to learn more about how electric vehicles can benefit your company, please do get in touch.

Your E-Car [email protected] www.yourecar.co.uk 01993 640001