Is this the right time to move to Phev and Fully Electric vehicles?

Added: 05 March 2021

Now is this the right time to move to Phev and Fully Electric vehicles….

As we continue to see the number of Plug-in hybrid electric vehicles (Phev) and Battery Electric Vehicles (BEV) on our roads an important question will be to consider if this type of alternatively fuelled vehicle works for your business and your drivers. As we now know the recent budget has maintained the £3k grant for Electric vehicles costing less than £50000. There are several key considerations to review all of which have implications and impact on suitability, these include;

Electric Range – while we are beginning to see vehicles becoming available with increased electric ranges, the daily, weekly and monthly mileage a driver requires may preclude certain fully electric vehicles, alternatively a Phev brings added flexibility without ‘range anxiety’.  

Fuel or Electricity reimbursement – if you provide either Phev or Bev’s there needs to be a consideration as to how you and your drivers deal with business mileage. Handling this in the wrong way could have significant cost implications.

Benefit in Kind – Providing both Phev and BEV’s will result in potential savings for your company car drivers and a reduction in Class1 NIC company costs.

Leasing costs – in some cases Phev and BEV’s can be more expensive than comparable Petrol or Diesel variants meaning that while the monthly company costs increase the drivers benefit from significantly reduced BIK rates. However, the true whole life costs could well benefit both company and driver and we are more than happy to calculate these for you.

Clearly these are just some of the considerations to take account of however at Agnew Leasing we understand how best to guide you and your drivers through the process of deciding if these vehicles have a role in your fleet, which specific vehicles to select and how best to manage the integration. For more information on this please contact David McEwen (Head of Business Development) at Agnew Leasing on 02980 386600 or david.mcewen@agnews.co.uk