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  • Did you know choosing electric vehicles for your fleet saves money

    Choosing electric vehicles for your fleet saves money

    Electric vehicles are becoming increasingly popular, not just because they are better for the environment but also because there are massive cost-saving benefits involved.

    There is a massive drive to reduce the UK’s overall greenhouse gas emissions to net-zero by 2050, and the phasing out of electric vehicles is part of that target.

    In addition to this, the government recently announced that they are banning the sale of petrol and diesel vehicles by 2030, so only electric or part electric vehicles will legally be sold in the UK.

    There are currently plenty of incentives to encourage more people and businesses to purchase electric vehicles, resulting in savings in over hundreds a month. So, opting for electric vehicles can save your business - and your staff - money.

    The costs of an ordinary petrol/diesel vehicle

    If your business relies on petrol or diesel vehicles, you will already know the expensive costs of running them. It can be one of fleets biggest expenditures, especially if you have high mileage. When choosing a vehicle, it’s always worth considering the overall fuel costs such as the Miles per Gallon and how expensive new parts are.

    Running a fleet can be expensive, which is why reducing costs where you can make a big difference. If you are in the process of reducing your costs and also lower your emissions, then electric vehicles will be your best option.

    The cost savings of an electric vehicle:

    So, what are the cost savings? Here are some ways you can benefit financially from switching to an electric vehicle.

    Running costs

    There’s no denying that petrol and diesel can be expensive – especially if you drive long distances. Reducing this cost is a massive benefit to your business.

    Although when first released, electric cars had some limitations with the battery charge and even finding a parking space with parking chargers could be an issue. With most manufacturers now offering an electric vehicle as part of their vehicle range, the quality of electric vehicles and installation of electric chargers has increased making switching to a fleet of electric vehicles now or in the future more feasible for your fleet.

    Reduction in Taxes

    Because electric vehicles do less damage to the environment and to incentivise the use of electric vehicles, there are some massive tax reductions you can benefit from. For example, there is no road tax to pay, which can massively reduce your overall costs.

    It can be even more beneficial if your business is either located or travel to London frequently. An electric van or car can save you thousands of pounds per year on the Ultra-Low Emission Zone and congestion charges. 

    Your staff can even benefit from electrical vehicles with Benefit in Kind (BiK) tax, which allows drivers to make significant savings on an electric company car. This tax is even set to reduce over the coming years. Currently, those who use a company car will pay 0% BiK tax during this financial year until 2021. From 2021 to 2022 there will be 1% BiK tax and 2% the year after to 2022-23.

    Staff can also massively reduce their monthly vehicle spend by opting for an electric company car, potentially saving £100’s each month.

    Lease costs of an EV are cheaper

    Depending on the type of EV vehicle you chose, the contract length and the amount of annual mileage you plan to do lease costs are often cheaper. There are various electrics vehicles models by popular car manufacturers, from hatchbacks, SUVs and saloons.

    There's an electric vehicle style out there to suit all lifestyles, with prices ranging from as little as £99+VAT for small vehicles, to high-end vehicles on a lease of £500 +VAT a month. These prices will change over the years as more electric vehicles enter the market.

    Maintenance and services of EVs

    A fleet of electric vehicles is significantly cheaper, not just in terms of fuel but also with maintenance and repairs. You won’t need to pay for oil and air filter changes, fans, timing belt, head gasket or spark plugs. The battery units are even one working part, so there’s only one thing to maintain and fix. On average, you can save 30% on maintenance costs when switching to an electric vehicle.

    With the sale of new petrol and diesel vehicles being phased out by 2030, you should start to consider future-proofing your fleet and benefit from costs savings while you can. If your fleet is ready for renewal, it may be worth looking at the cost-saving benefits of an electric vehicle fleet.

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