Electric Cars – What are they all about then?

It dawned on us a week or so ago at Dorset Car Leasing, after attending an online training session that there is still a great deal of confusion out there about electric cars, so here is a blog which you may find interesting.

Like it or not, we will all be driving electric cars/vehicles in the not too distant future. 2030 is only nine years away now and the Government has made it very clear to manufacturers what they need to do.

An Electric Vehicle (EV) is deemed to be a vehicle that you can charge externally. Here is a brief outline of the most common types currently available:

· Pure electric cars (known as BEV’s – battery electric vehicles) where the battery is the only power source. (An example of these are – Nissan LEAF, BMW i3, Volkswagen ID3, Tesla, Jaguar i-Pace, Polestar 2, etc).

· Plug-in hybrid (known as PHEV’s – plugin hybrid electric vehicles) whereby they have a battery and internal combustion engine (ICE) with a motor and/or engine providing drive. (An example of these are – Mitsubishi Outlander, BMW 330e, Hyundai Ioniq, Volkswagen Golf GTE, Mercedes A250e, etc).

So, what’s the difference in cost to run compared to a conventional car?

Below are average figures to provide a rough idea of the difference in costs based on pence per mile:

· Internal Combustion Engine (ICE) – 16p

· Plug in Hybrid (PHEV) – 11p

· Battery Electric Vehicle (BEV) – 3p

What about charging and how long does it take?

This in one of the questions we get asked the most. Many people are opting to have a home charging unit installed. In our opinion this is a great idea, especially as it is still possible to take advantage of the government grants available. Depending on what type of home charger you go for will determine the cost and how quickly it will charge the car.

For example, a 3.6kW (kilowatt) charger will cost circa £449 (inc VAT and installed) and would fully charge a Volkswagen e-Golf in under 10 hours. A 7kW charger is circa £529 and would charge the same car in under 6 hours. (Please be aware this is just an example and different cars will take different lengths of time to charge).

Some of the fast chargers available at supermarkets, shopping centres and fuel stations could charge an e-Golf to 80% of its capacity within circa 30 minutes. A client of ours who has recently taken delivery of an e-Golf has been charging his car at his local Tesco whilst he does the weekly shopping and has not needed to charge it anywhere else since taking delivery 4 months ago! And the best bit is that there is no charge to do this at Tesco!

Government grants are also available for workplace charging points and a great deal of information (for both private and businesses) can be found here – https://www.gov.uk/government/collections/government-grants-for-low-emission-vehicles

How can I find out where the charging points are in case I need one when I’m out and about?

There are now 6,382 more devices at 4,087 more locations than this time last year and this will continue to grow significantly over the next few years.

One of the best websites for finding out what is near to you or how you can plan a route if you are going on a journey is www.zap-map.com

It is worth taking a look, you’ll probably be surprised what is just around the corner!

So how far will an electric car travel on a full charge?

There is a phrase known as Range Anxiety – ‘the fear that a vehicle has insufficient range to reach its destination leaving the occupants stranded’.

This is by far the discussions we have the most with our clients and in some circumstances can mean the difference between establishing if an EV is the right vehicle to go for or not. One thing is for sure, EV’s travel a lot further now than they did just a few years ago and the rate at which the technology is moving forward is staggering.

Below are examples of some of the ranges achievable from a variety of different manufacturers:

· BMW i3 – 193 miles

· Hyundai Kona 64kWh – 299 miles

· Mercedes EQC – 259 miles

· Nissan LEAF 3.ZERO e+ – 239 miles

· Peugeot e-208 – 217 miles

· Tesla Model 3 (Long Range) – 348 miles

· Vauxhall Corsa-e – 209 miles

· Volkswagen e-Golf – 144 miles

· Volkswagen ID.3 – 205 miles

· Volvo XC40 Recharge – 250 miles

As you can see there is a big variation in the distances covered, but for most people, there is now an EV available which is suitable and worthy of consideration.

Many forget an EV does not need to be fully charged. Many users “top up” the charge to 80% as this is quick and gives them a sensible working daily distance.

To give you an idea of the growth in registrations of EV’s, in 2013 there were 6,000 on our roads, in 2018 this number grew to 195,000 and by 2023 it is predicted there will be over 1 million.

Are electric cars a good idea for company car drivers?

Potentially, yes, very much so.

The government is very keen to get more and more people into zero emission cars as quickly as possible. One way to encourage people is to make EV’s as tax efficient as possible, therefore, from this current tax year, the company car tax payable for a car which has zero emissions is zero. Yes, you have read that correctly, no matter whether you are a lower or higher rate taxpayer, you will not pay any tax for having a company car if it is pure electric! Even if it is a Hybrid car the tax is very low compared to a petrol or diesel engine car.

There is also a great benefit to the employer as there is no Class 1a National Insurance payable either.

You may be thinking the tax payable will go up in the future which is a fair assumption, but, the government has confirmed the tax payable will only rise to 1% (of the cars P11d value) for the next tax year, 2% for the following tax year and will remain unchanged until 2025.

We have clients of ours who have seen this low rate tax as a way of potentially giving their valued employees a pay rise (by replacing their ‘normal’ car) without actually giving them a pay rise as their net income can increase significantly per month.

What about the cost of an EV, I hear they are very expensive?

Most electric cars are still benefitting from the government grant of £3,000 off the list price and many of the EV’s we supply funded via a leasing contract are now significantly better priced than they were a couple of years ago.

You also need to factor in the fuel savings available. You will recall the client of ours I mentioned previously who has been charging his e-Golf at Tesco for free – he used to spend circa £120 per month on fuel! They also do not need to be serviced as often as a conventional car which is therefore another potential saving. Our industry calls it whole life costs, and all these factors are essential to consider before disregarding the EV option.

Many of our clients have been pleasantly surprised by how well priced EV’s are when factoring in all these considerations and the relatively low leasing payments.

Summary

Hopefully, you have learnt a bit more about electric cars having read this blog. Please be aware this has been written to provide a brief overview and there are a lot of considerations before committing to an EV, but we all need to be thinking about it whether we make the change now or in say 5 years time.

We would love to help and would welcome the opportunity to discuss any vehicle procurement requirements you may have.

We have a great deal of experience in this field and have supplied many local companies with EV’s over the past few years having spent a great deal of time ensuring they fully understand how they can work for them both now and in the future.

Even if you are just ‘dipping your toe in the water’ when it comes to EV’s, please feel free to give us a call here at Dorset Car Leasing on 01202 821354 or e-mail hello@dorsetcarleasing.uk

Why you should consider using a leasing broker for your vehicle procurement needs

One of the main benefits of using us (Dorset Car/Van Leasing) is that unlike dealerships we are fully independent; which means we can supply and advise on any make and model of car or van. 

This not only allows us to offer independent advice based on our years of knowledge within the industry, but we also have access to the best stock available at the best prices from the funders we have available to us.

We can do all the hard work for you; we’ll discuss your requirements both now and for the future to ensure you have the most suitable vehicle(s) for your needs. It saves you having to endlessly search through comparison sites and running back and forth from dealerships.

We are members of the British Vehicle Rental and Leasing Association (BVRLA) and therefore adhere to the mandatory Code of Conduct which is there to ensure you benefit from the highest standards of service, fair terms and conditions as well as transparent and accurate information.

We genuinely care about our local reputation and providing the best levels of service to our customers. Much of the feedback we receive, is along the lines of how pleased our clients have been, when we have challenged their initial thoughts on a vehicle they were enquiring about. 

Quite often we sourced a more appropriate vehicle (which they did not initially think about), or a different model within the range which generated a financial saving. 

Alternatively, we can of course, just act on your original instruction and probably still find you the best deal. 

Even if you have already been in to a local dealership and chosen your vehicle, it’s worth giving us a quick call as the chances are we could improve on what you have been offered. 

On the rare occasion that this is not the case, at least you will have benefitted from ‘another pair of eyes’ and if the deal you have been offered can’t be bettered, we’ll not hesitate to tell you.

Please contact FBN member Dorset Car/Van Leasing by phone or e-mail and we will be pleased to chat, discuss your requirements and offer our knowledge to ensure you end up with the most suitable vehicle for your needs.

Email: andrew@dorsetcarleasing.uk

Call: 01202 821354

www.dorsetcarleasing.uk

Are Diesel cars really that bad?

Back in the year 2000 when we were all told planes would fall out of the skies and our PC’s would pack up and never work again, diesel-engined cars accounted for just 14.1% of the new car market. By 2011, this figure had increased to 50.6%.

One of the main reasons for this rise in popularity was the introduction of Benefit in Kind for company car drivers in 2002, who, at the time were encouraged to choose lower emission cars which diesels were. The change in taxation regime also led to many engineering advances which led to a reduction is CO2 emissions from an average of 181 g/km in 2000 to 120.1 g/km in 2016.

The landscape changed for diesels in 2015 though when reports of air quality concerns started hitting the headlines and what became known as ‘Dieselgate’ led to manufacturers selling 38% fewer diesel cars by the end of 2018 than at their peak. NOx became the new CO2 and we started to see the introduction of Clean Air Zones, increases in Vehicle Excise Duty and supplements to Company Car Tax.

A recent Government statement read ‘cleaner diesel cars and vans can play an important part in reducing CO2 emissions from road transport during the transition to zero-emission vehicles’.

With the introduction of the new emissions testing regime known as The Real Driving Emissions (RDE) test, future vehicles will be tested more rigorously to measure pollutants such as NOx, emitted by cars on the road.

With more and more engineering developments we are starting to see manufacturers produce diesel engine cars which are scoring maximum points for the Green NCAP Clean Air Index, the same as electric vehicles. Whilst electric vehicles produce no pollutant emissions, we are beginning to see diesel engine cars, with proper calibration and effective after treatment, can deliver extremely low pollutant emissions.

In recent test carried out by a German automobile club, one of the diesel vehicles tested did not emit any NOx emissions at all which demonstrates how quickly the engineers are developing clean diesel engines.

Might Diesel cars still be a good choice for company car drivers?

Maybe. The latest RDE2 compliant diesel cars are exempt from the 4% diesel Benefit in Kind (BiK) surcharge which comes into effect from April 2020, meaning they are charged at the same rate as a petrol engine powered car with the same CO2 emissions. Some manufacturers are even producing plug-in hybrid diesels which not only are very fuel efficient, but also benefit from an incredibly low BiK rate.

Neil Carlton, Director of Poole based dorsetcarleasing.uk said ‘over the past couple of years there has been great confusion when it comes to the real situation regarding petrol versus diesel cars. We have had situations whereby companies have switched from diesel cars into petrol equivalents and reported a significant drop in MPG which has pushed their and their employee’s fuel spend up by around 15-20%. We strongly recommend that any future car changes are considered very carefully, and proper advice should be sought’.

Ferndown Business Network Members Neil Carlton and his business partner Andrew Garaway can be contacted via www.dorsetcarleasing.uk or by calling 01202 821354

<span>%d</span> bloggers like this: