As many as 435,000 small- and medium-sized enterprises (SMEs) could each save up to £1,440 a year with their first Electric vehicle, which could deliver a whopping £625 million in cumulative savings for UK businesses, according to new research. Figures provided by Lex Autolease showed that both the pure electric Hyundai IONIQ and plug-in hybrid models benefit from a £120 monthly whole life cost saving compared to the Hyundai i40. This adds up to a yearly saving of £1,440 in running costs by switching to electric.
A survey of UK SMEs, commissioned by Go Ultra Low for its recent Summit – Preparing for your electric vehicle future –found that many businesses are not aware of the potential savings running electric cars or vans.
Lex Autolease data (September 2017) shows that both the pure electric Hyundai IONIQ (IONIQ Electric Premium 5dr Auto) and plug-in hybrid (IONIQ 1.6 GDi PHEV Premium 5dr) models benefit from a £120 monthly whole life cost saving compared to the Hyundai i40 (i40 1.7 CRDi Blue Drive Premium 4dr). This adds up to a yearly saving of £1,440 in running costs.
When assessing suitable vehicle options, only 35% of businesses said they consider whole-life costs of running a vehicle, with the major considerations remaining at the more basic level of vehicle contract hire rates (32%) and vehicle list price (12%). Despite this, more than two thirds (67%) said they would consider 100% electric and plug-in hybrid vehicles with lower whole-life costs than petrol and diesel equivalents.
Whole-life cost figures from Lex Autolease illustrate how the higher initial cost of plug-in vehicles can be more than offset by significant fuel savings, tax benefits, and a potential 70%**** reduction in service, maintenance and repair (SMR) costs.
Speaking at the Go Ultra Low Summit, Poppy Welch, Head of Go Ultra Low, said:
“Cost savings are a top priority for companies of all sizes. So, fleet operators from both SMEs and large companies that look beyond a vehicle’s initial purchase price or monthly rental, stand to save their companies thousands of pounds every year.
Electric vehicles can return significant operational savings – just one electric car or van could save SMEs up to £1,440 annually. With an ever-increasing number of plug-in models now available, it’s even easier for businesses to identify an ultra low emission vehicle that suits their needs.”
Go Ultra Low research also found that UK companies already using electric vehicles for business operations are more than 2.5 times as likely to offer them to their employees as company cars, giving them the opportunity to benefit from preferential benefit in kind (BIK) tax rates and reduced fuel costs. As well as the savings, company car drivers are eligible to sign-up to the Electric Vehicle Homecharge Scheme, enabling them to claim up to £500 off the cost of installing a dedicated home chargepoint.
The Go Ultra Low ‘Preparing for your electric vehicle future’ Summit, was held in London on 10 January, with more than 70 fleet decision makers in attendance – including representatives from some of the 140 businesses accredited as Go Ultra Companies. Go Ultra Low supports UK businesses by providing them with fleet-focused information and real-world case studies that demonstrate how companies around the UK can save money by including 100% electric and plug-in hybrids on their fleets.
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