Over the years electrical vehicles have been growing in popularity. Not only for their environmental benefits but also for their lower running costs. But is it the right step for you and your business? Should you get an electrical vehicle for your business?
Should you get an electrical vehicle for your business?
There are both pros and cons to consider before you make your decision. We’ve laid them out for you below.
Pros on getting an electrical vehicle
- Lower running Costs – these vehicles cost a fraction of the price to run compared to diesel/petrol run cars
- Environmental Benefits – It is estimated that they could save 1.5 million grams of CO2
- Government Incentives and Tax Benefits- there are several schemes available that are available for business owners. These could save you a lot of money in the long run
Cons on getting an electrical vehicle
- You can’t travel quite as far without needing to charge the vehicle
- It is more than likely you would need to install a charging point either at your work or at your home
- The upfront cost of the vehicle is going to be higher than your average car
These disadvantages may throw a lot of people off. However, there are incentives in place that reduce the impact it has on you.
What incentives are there for electrical vehicles?
There are different vehicles available in which you can travel further. So, you can estimate how far you travel each day and then purchase your vehicle based on this. For instance, The Renault Zoe can travel 179 miles before it needs charging. This is usually more than enough for a lot of people.
In regard to the charging point, the government do currently have an Electric Vehicle Homecharge Scheme. This is where you can get up to 75% towards the cost of installing a charging point at your home. There are also Workplace Charging Schemes available so you can get a voucher towards the cost of buying and installing a charging point at your workplace.
Probably the one thing that puts most people off getting an electrical vehicle is the upfront cost. Most of these cars are available on finance, which might make your monthly payments a bit higher but reduce the initial upfront cost.
However, there are also grants available for those that buy them outright. Businesses can benefit from the Low-Emission Vehicles Plug-in Grant. This covers cars, vans, mopeds, taxi’s etc. and is available to dealerships that will take the value of the grant off the price. You could get up to £2,500 off a car or even up to £16,000 off a truck.
Still unsure about purchasing an electric vehicle for your business?
Are you still unsure as to whether an electrical vehicle is for you? These are just a couple of other ways in which purchasing one could save your business money.
Travel Incentives
- You would no longer have to pay the congestion charge of £11.50 a day. This could save you roughly £200 a month, that’s over £2000 a year!
- You would also be exempt from the £12.50 charge a day as part of the Ultra Low Emission Zone. This is a scheme that is currently planned for Birmingham, Manchester, Bristol, Bath and Oxford.
- You are also exempt from:
- Vehicle Excise Duty
- Van Benefit Charge
- Fuel Benefit Charge
- Fuel Duty
Electric Company Car Vs Petrol Company Car
You usually must pay around 13.8% car tax and national insurance on a company car. This was just 1% in 2021 for electric cars, rising to just 2% in 2022-2025.
Not only this but if you buy an electric business vehicle personally rather than a company car, you could claim 45p per mile as a business travel expense. The estimated cost is just 4p!
Some of the best electric vehicles out there:
Vans:
- Nissan eNV2000
- 100 Miles before it needs charging
- 40kWh battery pack
- £30,000+
- Volkswagen ABT eTransporter
- 82kWh battery pack
- 82 Miles before it needs charging
- Best for drivers who are travelling over 50 miles a day
- £40,000+
- Mercedes Benz eVito
- 93 Miles before it needs charging
- 85kw Motor
- £40,000
Cars
- Nissan Leaf
- 168 Miles before it needs charging
- 18hrs to fully charge
- Just under £30,000
- Renault Zoe
- 20hrs to fully charge
- 179 miles before it needs charging
- £28,000
- Audi E-tron
- 42 hours to charge
- 259 miles before it needs charging
- At least £60,000
There is a vehicle for every budget and every need. The government are clamping down on petrol and diesel vehicles. They will be prohibiting the sale of diesel cars in the UK by 2030. Therefore, an electric vehicle for your business feels like a good decision to make.
If you would like further business tips and advice, especially on finance, make sure you check out the rest of my blog posts.