Insights / Electric vehicles save on Total Cost of Ownership

How to run a cost-efficient electrified commercial fleet

26th July 2021

Lower ownership costs can make electric vehicles (EVs) the best option for commercial fleets.

When you’re considering whether to invest in EVs for your commercial fleet, it pays to look at more than the initial costs alone.

The Total Cost of Ownership (TCO) is a key metric, and for an EV versus a conventional internal combustion engine (ICE) vehicle, the picture becomes much clearer.

How can electric vehicles save on the Total Cost of Ownership? - Hero

As well as cutting tailpipe emissions to zero, EVs could also significantly cut the total lifetime cost of your fleet.

In fact, many fleet managers – and their finance directors – are finding that lower TCOs are making EVs a more attractive option than ever.

That TCO is made up of a number of elements. These include:

  • The price of the lease for the vehicle
  • Maintenance cost
  • Fuel costs
  • National Insurance contributions
  • Vehicle Excise Duty
  • Insurance premiums
  • And any applicable corporate tax deductions.

Even when EVs can initially look like the more expensive options, considering all the lifetime costs in this way shows that they can be cheaper in the long run.

That’s without adding in the significant Benefit in Kind (BiK) tax savings your fleet drivers could make when they choose an EV, plus the significant fuel savings.

Mile-for-mile, it’s much cheaper to fully charge an EV than to fill the tank of a similar size petrol or diesel vehicle. It only costs around 2p per mile to run an EV – and there’s no Fuel Duty on electricity.

There’s also a wide range of grants available that make EVs an even more attractive choice.

These include reductions on the purchase price, such as:

Plug-in car grant – worth 35% of the purchase price, up to £3,000 (provided vehicle is fully electric and costs less than £50,000 including VAT and delivery fees)

Plug-in van grant – worth 20% of the purchase price, up to £8,000

Plug-in large vans and trucks grant – 20% of the purchase price, up to £20,000 (terms and conditions apply)

Grants towards the cost of installing charging points:

Workplace Charging Scheme

Up to £350 per socket (40 sockets max) at 75% of the total cost of installation. Maximum possible grant of £14,000 (Find out more here).

Electric Vehicle Homecharge Scheme

Up to £350 (including VAT) off the cost of installing a charger at each of your fleet drivers’ homes (Find out more here).

We can also provide our customers with comprehensive telematics data, so you can identify operational efficiencies to further cut costs.

We’re already helping fleet managers to cut their lifetime costs and emissions with EVs. We’d be delighted to help you too. Please get in touch to find out more.

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