FROM THE
INDUSTRY
EVs are NOT for everyone, but not many lease companies will tell you that
By Richard Jessop, Director of Sales - Salary Sacrifice & Corporate Partner at Ogilvie Fleet
It will not have escaped anyone’s attention that, even with the Government’s delay to the ban on petrol and diesel cars to 2035, the pressure is on for fleets to begin the process of adapting to EVs. The two biggest push backs to the ban that we hear are around the higher purchase price of EVs, which comes from businesses, and range anxieties from drivers.
To both, my answer would be that EVs might not be right for everyone – today at least. For those who cover higher mileages and who have a fixed budget based on historically traditional fleet vehicles, ICE cars will remain popular options for the next cycle or two.
However, it’s also true that the reality is a far cry from the commonly-touted fears. The average range of all the EVs on sale in the UK is 236 miles, and many of the vehicles we supply now have ranges of 300 miles or more. When this is compared to the average UK household mileage of 37 miles a day, this means that only one full charge would be needed per week and less for higher range vehicles.
“While we agree that EVs are not for everyone, it's highly likely that they are right for many more drivers than might be first assumed – and that number will only grow”
Richard Jessop
“While we agree that EVs are not for everyone, its highly likely that they are right for many more drivers than might be first assumed– and that number will only grow”
Richard Jessop
When it comes to costs, we recommend that anyone looking for an EV as a company car considers the whole life cost (or Ogilvie True Cost as we call it) rather than just the lease rental or P11D value. If that still doesn’t work, then there’s every chance that considering a car on a salary sacrifice scheme (especially in place of a PCP or PCH contract) would work. Salary Sacrifice will not only provide a significant saving on both income tax and NI contributions for drivers and employers alike but it does so with a relatively low BIK for the next 4 years. EVs also make exceptional second cars on a Salary Sacrifice scheme and we have many instances of drivers saying “EVs are not for me and then finding themselves having two cars on the driveway!
Of course, for fleets or drivers where a pure EV is still not a possibility, a PHEV is a great mid-point solution. Hybrids enjoy great tax advantages compared to petrol or diesel vehicles alongside healthy range potential for drivers, whilst being available on a salary sacrifice scheme. There are few downsides.
So, while we agree that EVs are not for everyone, it's highly likely that they are right for many more drivers than might be first assumed – and that number will only grow.
Richard Jessop
Director of Sales - Salary Sacrifice & Corporate Partner at Ogilvie Fleet
