You may be surprised to learn that 40% of all the vehicles ordered via KeyFleet post lockdown have been electric

" />You may be surprised to learn that 40% of all the vehicles ordered via KeyFleet post lockdown have been electric

" />

Why aren’t you running electric vehicles yet?

You may be surprised to learn that 40% of all the vehicles ordered via KeyFleet post lockdown have been electric – at least plug-in (PHEV) or traditional hybrid.

Electrification of vehicles just cannot be ignored anymore and in fact, considered correctly, can be a fantastic way for businesses to reduce motoring costs, potentially saving hundreds or even thousands of pounds each year.

But why the increased interest in electric? Well, this isn't an overnight sensation. Electric vehicles have been around since before Tesla boss Elon Musk was even born, but the international commitment to reducing greenhouse gas emissions and incentives through taxation for employers and employees alike, plus the development of cutting-edge technology, has allowed the electric vehicle industry to really plant a flag in the market.

In April this year the new 0% BIK (benefit in kind) tax rate arrived with much fanfare in the industry and preceded a queue of drivers looking to convince their employer to invest in this technology to allow them to reduce their monthly company car tax bill to zero.

Even drivers currently receiving a cash allowance, or reclaiming fuel using the AMAP rates (45/25p), should be better off by returning to a more traditional, but electrified, company car.

New car registration figures published by the Society of Motor Manufacturers and Traders show that for the year to date up to July there has been an increase in fully electric vehicle sales of 175% over 2019.

In addition, plug in hybrids are up by 59% and mild hybrids are up by 97% whilst petrol and diesel sales are down 47% and 61% respectively for the same period.

In fact, Tesla was the best-selling vehicle in May (albeit in a depressed market) due to innovations around contactless delivery in addition to their growing popularity.

At first glance, electric vehicles look more expensive than their counterparts – and that’s correct. But you must get past the acquisition cost and drill into the savings on running costs and taxation.

Not only do drivers currently benefit from a 0% BIK rate but businesses can save 100% on NI contributions, access 100% first year write downs on ownership or 100% capital allowances on lease rentals in addition to the undeniable fuel and also maintenance cost savings.

In our experience an expectation of £1,000pa savings for both the driver and the business for each vehicle on fleet is not unrealistic with high mileage, higher taxpayers saving even more.

Electrification isn’t for every business or every driver, but with the undeniable potential for savings for some users what is clear that every business should at least consider making the switch – and quickly.

  • To read this feature in full and access further Lancashire business news, advice and analysis subscribe to Lancashire Business View magazine or join the LBV Hub from just £2.50 per month. Click here to subscribe now.

Enjoyed this? Read more from Marc Mcloughlin, Keyfleet

Latest news

1

County council chief executive set to depart Angie Ridgwell

County council chief executive set to depart

12 Jun 2024

2

Acquisitions bolster Chorley investor's neuro rehab offering Handl Group

Acquisitions bolster Chorley investor's neuro rehab offering

12 Jun 2024

3

Napthens announces new senior marketing hire Catherine Wong Napthens

Napthens announces new senior marketing hire

11 Jun 2024

4

Business leaders enjoy a Taste of Hyndburn culinary tour AmazingAccrington business leaders enjoyed a culinary tour of Hyndburn as part of the Taste of Hyndburn event press.jpeg.jpg

Business leaders enjoy a Taste of Hyndburn culinary tour

11 Jun 2024

5

EV charging point software firm appoints new chair Paul Brennan Fuuse

EV charging point software firm appoints new chair

11 Jun 2024

Lbv116 Ltb Strip980
Background image for hub sign up block

LBV Hub

Reach 50,000 members of the Lancashire business community

Post your news
Post your events
Post your offers
Company profile
Social reach
Magazine coverage
Sign-up
Events
RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
11 Jun 2024 - 04 Dec 2024

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 16:30

Business Networking in Lancaster - BNI Castle
EVENT LISTING BNI Castle.png.png
LBV Hub Networking
13 Jun 2024

Business Networking in Lancaster - BNI Castle

Vale of Lune RUFC, Powder House Lane, Lancaster, LA1 2TT

06:45 - 08:30

Business Networking in Burnley - BNI Kudos
EVENT LISTING BNI Kudos.png.png
LBV Hub Networking
13 Jun 2024

Business Networking in Burnley - BNI Kudos

Prairie Sports Village, Windemere Avenue, Burnley, BB10 2FU

06:45 - 08:30

The Business Network Central & East Lancashire
LBV Header (9).png.png
LBV Hub Networking
13 Jun 2024

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

How to Meet the Requirements of the Women's Health Strategy
LBV Hub Webinar
13 Jun 2024

How to Meet the Requirements of the Women's Health Strategy

x, Online, x

12:30 - 13:15

Business Networking in Blackburn - BNI Infinity
EVENT LISTING BNI Infinity.png.png
LBV Hub Networking
14 Jun 2024

Business Networking in Blackburn - BNI Infinity

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:30 - 08:30

Business Networking in Preston - BNI Brunch
EVENT LISTING SIZING Brunch .png.png
LBV Hub Networking
14 Jun 2024

Business Networking in Preston - BNI Brunch

Samlesbury Preston Hotel, Preston New Road, Preston, PR5 0UL

09:30 - 11:00

Chamber Annual Dinner
Chamber Logo1.png.png
LBV Hub Social
14 Jun 2024 - 14 Jun 2024

Chamber Annual Dinner

Morecambe Football Club, Morecambe, LA4 4TB

19:30 - 00:00

Liverpool City Region Business Expo
LCR 22 EXPO IMAGE.jpg.jpg
LBV Hub Exhibitions
14 Jun 2024

Liverpool City Region Business Expo

Exhibition Centre, Liverpool, L3 4DQ

09:00 - 15:00

Business Networking in Chorley - BNI Endeavour
EVENT LISTING SIZING Endeavour.png.png
LBV Hub Networking
18 Jun 2024

Business Networking in Chorley - BNI Endeavour

Oak Royal, Bury Lane, Chorley, PR6 8SW

06:30 - 08:30

Business Networking in Blackburn - BNI Vista
EVENT LISTING SIZING Vista.png.png
LBV Hub Networking
18 Jun 2024

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:45 - 08:30

Business Networking in Accrington - BNI Zeus
EVENT LISTING SIZING Zeus.png.png
LBV Hub Networking
19 Jun 2024

Business Networking in Accrington - BNI Zeus

The Mill House, Corn Mill Yard, Accrington, BB5 5HX

06:45 - 08:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV116 Online Graphic
Subscribe now

Weekly news bulletin