Is now a good time to lease an electric vehicle? It’s one of the questions we hear the most here at GKL Electric. For our money, the answer is yes.
That’s backed up by recent stats, which predict EVs (electric vehicles) will actually outsell mild hybrid and diesel vehicles by the end of 2022. In fact, this March alone saw the highest ever number of battery-operated vehicles (BEVs) registered in a single month! From our perspective, that’s pretty exciting.
If you’re wondering “should I get an electric vehicle?”, read on for our top seven reasons why now is the time to go electric with your fleet’s leasing strategy.
1. Fossil fuel price rises make EVs more cost effective every day
The recent dramatic rise in fuel prices has seen fleets who that were previously set on sticking with petrol and diesel begin to reconsider. And with those fossil fuel costs looking likely to stay high (and maybe even climb higher) in the months to come, even the once-prohibitive outlay of installing charging points is looking rather attractive by comparison. For many fleet managers, that’s the first reason why now is the time to go electric – though it’s by no means the last.
2. EVs will help your fleet meet EU emission standards
Another big reason you should get an electric car is the benefit it will offer for your fleet’s emission reduction measures. EU-wide regulations mean fleets must reduce their greenhouse gas emissions by 15% by 2025, and by 37.5% for cars and 31% for vans before 2030. Those businesses that don’t hit those targets will face hefty sanctions, so this is a major initiative that every fleet manager should be actively participating in.
3. EVs offer attractive tax savings
Another of the significant pros of electric cars is the tax benefits they bring. For one thing they’re not being subject to road tax, while also offering a startlingly low 2% Benefit in Kind (BiK) tax on company cars. (Petrol and diesel vehicles start at 25% and rise up to 37% depending on their emission levels). In addition, EVs are also fully exempt from both congestion and Ultra Low Emission Zone (ULEZ) charges, making them an even more cost-effective way to get around.
4. And also lower annual running costs
According to iNews Motoring, EVs are now on average £600 cheaper a year to run than petrol alternatives, with the average cost of running an electric car standing at £1,264 compared to £1,843 for a petrol one. So if you’re wondering is it worth buying an electric car, then certainly from the perspective of day to day running costs, it absolutely is!
5. EVs also present lower maintenance and service costs
As reported on by Forbes, research firm We Predict suggests that service costs for electric vehicles could currently cost up to 30% less than those for combustion engine vehicles. That’s also backed up by a study from British gas, which suggests EVs are between £50 and £80 cheaper to service.
These facts might be surprising given the specialist nature of e-vehicle parts, but the technology seems to simply need less upkeep on the whole. Plus with diesel vehicles in particular being phased out, those vehicles will become even more expensive to service – while EV parts should, over time, become even more commonplace. That’s only going to add to the difference, and gives another reason as to why now is the time to go electric.
6. Plus relative parity on insurance for most models
If the reasons so far don’t swap you to driving an EV, maybe this will: the vast majority of electric models now cost the same to insure as their petrol and diesel equivalents. In other words, what was once a major blocker to making the switch to electric only a few years ago has now been largely done away with. The exception is high-end vehicles, where there is still something of a gap according to British insurer Confused.com. However, with the majority of fleet cars falling in the low-mid price range, that’s unlikely to prove a drawback for most fleet managers. Yet another of the pros of electric cars.
7. EVs also offer a surprisingly competitive total cost of ownership (TCO)
Our final reason why now is the time to go electric is a big one. Recent industry studies have also indicated that the total cost of ownership (TCO) for electric vehicles has fallen dramatically, and is now even on par with combustion engine cars for some models. With TCO being an especially large factor for fleets weighing up the cost of going electric, this news indicates that with a careful choice of vehicle models, making the move might prove beneficial to your fleet’s bottom line.
“There are a lot of leasing companies – especially the larger ones, who have a rigid process – who are insisting customers return vehicles at the end of their leases, so they can lease them out elsewhere at the higher price,” explains Sam. “We don’t do leasing by numbers. We do leasing by people. As a completely independent leasing company we can make independent decisions, and we prioritise keeping our customers mobile.
“With chips for EV cars in short supply and the list of available electric cars being what it is, we’re doing whatever we can to get people through,” he continues. “Our advice is: do not wait. Get in touch with us asap – but also act on that conversation we have quickly.
“We’ve found a lot of our customers are talking to us, going away, having a think, then coming back a few weeks or a few months later, and expecting the same terms that we discussed originally. But the situation is so fluid, they’re unlikely to be available. We recently had one customer do that, and the wait on their Polestar EV we’d originally discussed had gone from weeks to months.
“Current electric vehicle availability means that if you can come to us in good time, be decisive, and act on things quickly, you’ll put us in the best position to help. We’re absolutely here to support you, but the more proactively you work with us, the more help we can be.”