Going electric for a greener future: Why companies should lease electric cars

Added by Love Business East Midlands | 4 June 2020

UPDATED: 11 June 2020

Over recent weeks, we have experienced what has been labelled a ‘carbon crash’, with CO2 emissions plummeting as a result of the pandemic.

But, as businesses prepare to reopen offices and daily commutes and work travel recommence, sustainability must remain a concern if we are to meet the government’s net-zero carbon goal by 2050.

No doubt business owners will have a new set of priorities upon their return, with health and safety taking the top spot. And, having taken a break from business as usual, long-forgotten memories of rush hour traffic and regular fuel stops will soon come racing back for many.

Electric vehicles (EVs) eliminate some of these issues, whilst also allowing you to do your bit for the environment. And, as governments set out plans to phase out fossil fuel-powered cars and manufacturers respond to increased demand for a more eco-friendly alternative, there is now a wider selection of electric and hybrid vehicles on offer than ever before. 

What’s stopping businesses from making the switch with their fleet of vehicles?

Caroline Hill, Commercial Director of Leicester-based vehicle leasing company, Pink Car Leasing, uncovered some of the issues.

As the world becomes more sympathetic to, and conscious of, the damage we are doing to the environment, EVs will have to play a huge role in combating climate change. As plans to phase out fossil fuel-powered cars are rolled out, we can expect to see an increasing number of hydrogen and electric models on our roads in the next 30 - 50 years.

These vehicles are cleaner and more efficient than both petrol and diesel models and, not to mention, more reliable too, with fewer moving parts to wear out or break down.

For now, a tax system that incentivises or penalises drivers, depending on their vehicle use, is in place. Electric cars are currently being incentivised by schemes, such as the OLEV grant and preferential tax regimes for companies and their employees.

However, range is a common issue that deters many from opting for an EV. For businesses that require long drives up and down the country, a quick fuel stop is much more convenient than a charging layover.

Charging also becomes an issue for those living or working in apartments or offices that have no driveway or car park where charging points can be installed.

But companies whose driving is mostly inner-city are less likely to encounter these problems, as their trips are shorter and charging points are plentiful in most cities. Therefore, they will definitely see the value of an EV, particularly when it comes to cost. When you compare the total cost of ownership of an EV to a fossil fuel car, it is very similar, or in some cases, even lower for EVs.

Considering the issues of electric cars, some companies might consider hybrid options instead, as they still offer tax exemptions, but the two should not be confused. Hybrids have a much shorter life span and are often just ‘manufacturers tools’ to help them avoid paying fines.

So, if you’re looking for a car that you can rely on for many years, an electric vehicle is definitely the better option. And, if ownership is not commercially viable for your business, you can always consider a lease plan.

We would always recommend speaking to a funding specialist, such as Pink Car Leasing, as they can advise you on whether to buy or to lease and the benefits of both to the individual business.

The most significant benefit of leasing is that you get the vehicle for a fixed period of time and are then able to return it with minimal consideration or hassle. Costs can be predicted and accounted for and spread out to fit your stream of cash flow.

Nonetheless, anyone looking for a new vehicle at present or in the near future should consider going electric for a greener future. Although there might not be a suitable option available right now, as every month passes by, more and more enter the marketplace, so a scenario in which every price range and car type has a viable electric option is only months away.

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