Electric vehicles could lead to big savings for company car drivers
Company car drivers could potentially make significant savings by switching to an electric vehicle.
A recent survey was conducted by Go Ultra Low, a combined government and industry campaign with the aim of providing further information about the costs, benefits and capabilities of electric vehicles.
What are the potential savings of electric vehicles?
Company car drivers could save a total of £7376 by switching to a fully electric car. This is broken down to £3842 savings on fuel and £3974 savings on Benefit in Kind (BIK) rates. This figure is based on a comparison between diesel and electric vehicles with the test using the Volkswagen Golf GTF BlueLine and e-Golf travelling a mileage of 19,800 per annum, the average mileage of a company car according the the Department for Transport. Fuel costs would be 3p per mile for a 100% electric car compared to 9p per mile for an average diesel car. The figures are based on a 40% tax payer over three financial years from 2017.
While this full-life picture provides some interesting results, it doesn’t necessarily mean that company car drivers should instantly transfer to an electric vehicle. There are practical considerations to be taken into account. At ACVM, we always recommend looking at the full-life costs of owning a vehicle, but as well as the high up-front costs of owning an electric vehicle, there are potential infrastructure costs involved. In addition, it’s important to consider how the vehicle will be used.
If these cars are required for long-distance travel then, at present, an electric vehicle isn’t practical. The maximum range of the e-Golf is 186 miles, although in real-world driving conditions, it will be significantly lower. Even if your business travel is unlikely to exceed this limit on a daily basis, it’s important to take the charging infrastructure in your local area into consideration. If your workplace doesn’t have chargers, that’s another obstacle to running electric vehicles. If you are looking to move towards this technology, then investment will be required, and this could be significant depending on the size of your electric fleet. However, grants are available for the installation of charging points, both for business and in the home.
How can I find out more?
To see a side-by side comparison, you can visit the Go Ultra Low website and use their car tax calculator to see how electric and conventional vehicles from manufacturers including Audi, BMW, Hyundai, Renault and Volkswagen compare. You can also get in touch with us – we’d be happy to chat through all the current electric and hybrid vehicle options, as well as the potential benefits of switching to an electric fleet.