Be a front runner of the future by taking advantage of the government schemes and switch to an electric vehicle. Making the switch to an electric vehicle is just as much for the environment as it is for our budgets. With rising fuel costs, the idea of moving over to an electric vehicle is becoming more and more appealing. With some generous grants from OLEV, the aim is to make switching easier for company car drivers and for personal cars.
What do you need to consider before going fully electric?
Upfront cost and cost savings:
For individuals, the upfront cost of buying an electric vehicle isn’t the cheapest- the vehicle itself will probably add another £10,000 to your budget. However, you will save on fuel costs, depending on certain factors you can travel 100 miles in an electric car from under £2, compared to the best-value £12 in a petrol-powered vehicle. The maintenance of the car and road tax also have the potential to save you around £440 per year. After the initial outlay, depending on the number of miles you travel you will see the cost savings coming back in.
There was cost comparison done between a very efficient diesel Ford Focus and a pure electric Nissan Leaf, both driven 10 000 miles per year for a period of 5 years. The comparison showed that the fuel costs for the Focus came to 8.32 pence per mile, while the Leaf was almost half that, costing just 4.18 pence per mile. Ultimately, this means that Leaf drivers would save around £414 on fuel each year, and £2 067 over a 5-year period, compared to drivers of the diesel-powered Focus.
Having a charge point at home also reduces the cost significantly than using one of the charging stations. Although, many public places and organisations are adopting charging stations you can use for free- even better for the cost savings!
For Company Car Drivers
If you’re one of the millions of company car drivers in the UK, then as the new tax year approaches you may be ready to convert to your fully electric vehicle as BIK tax drops to 0%, meaning you could save £1,696 if they you’re a basic rate tax payers or £3,392 for higher rate tax payers or even £3,816 for additional rate tax payers.
To put into perspective for individuals, an average employee on a higher-rate tax (40%) with a diesel hatchback company car, with a value of approximately £30,000, can currently expect to pay just over £18,000 in tax and fuel costs over a four-year period.
For a comparable electric vehicle, the employee total cost of ownership, which includes the cost of BIK tax, the cost of fuel for business and private mileage less any business mileage reimbursement received, reduces to £916: a saving of 95%!!!
If you want to find out your eligibility for the Home charge scheme, or to simply find out more get in touch with one of our experts at Blaby Electrical.