With the UK ban on selling new petrol and diesel vehicles now less than 10 years away, more and more businesses are making the switch to electric vehicles.
Making the move to electric fleets feels more inevitable, especially in light of the recent COP26 agreements and promises to reduce our carbon footprint.
In this article, we discuss why you should consider investing in the switch from combustion engines to electric sooner rather than later. We take a look at the benefits of electric vehicles and why switching is a potential opportunity for businesses.
Why now?
With an increasing number of EVs (electric vehicles) entering the market, which is going to continue to grow, now is a great time to consider an EV for additional fleet vehicles or to replace an existing fleet.
Whilst we are all aware of the positive impact that EVs have on the environment, there are also a range of other benefits to owning EVs from a business perspective, from enhancing your reputation, to improving your bottom line.
Go Green
The first and most obvious benefit to investing in electric vehicles is the environmental impact. Road vehicles are responsible for around 20% of the global emissions total and the UK has committed to banning the sale of new petrol and diesel engines by 2030.
By switching to an electric fleet of vehicles, you can make a huge contribution to reducing the threat of climate change and positively impacting the carbon footprint.
Enhance your businesses reputation
Consumers and employees are increasingly focussing on the environmental impact that businesses are making when it comes to choosing who they work with and who they consume from. Becoming a more sustainable organisation is going to become essential for brand reputation. We are increasingly seeing the need for businesses to produce their sustainability and green statements. Most banks have these now and, in many cases, require this of their customers.
By putting environmental concerns at the heart of your business and switching to electric vehicles now, you will improve your brand reputation as a leader in reducing your carbon footprint whilst meeting the demands of both customers and employees.
By actively demonstrating your corporate social responsibility, you will enhance your businesses sustainable credentials. Being able to demonstrate a commitment to reducing your carbon footprint can help to improve customer loyalty, better employee retention and have a greater appeal to new customers and markets.
Reduced costs
Furthermore, making the switch to electric vehicles can have a positive impact on your bottom line.
EVs are more cost effective than traditional engines and you could see significant savings on running costs should you invest.
On average, an electric vehicle (dependent on where it is charged) will cost 2 - 4 pence per mile to run, compared to 10 - 14 pence per mile for an equivalent petrol or diesel vehicle. This represents a saving of around 80 to 90 per cent on fuel costs.
For fleet vehicles, particularly those doing regular journeys of up to 100 miles per day, this would result in significantly reduced costs.
Maintenance costs of EVs are also significantly less as they are more reliable due to having fewer mechanical parts.
Further financial benefits
Although initial outlay costs of purchasing an electric vehicle are higher than traditional diesel and petrol engines, they will provide greater lifetime savings from reduced running costs, and by taking advantage of government incentives and tax benefits.
There are a range of financial incentives for businesses to switch to EVs, including tax and duty exemptions and enhanced capital allowances.
How can asset finance help?
Asset finance can provide a cost effective solution enabling you to invest in electric vehicles whilst minimising the impact on cash flow.
Here at Custom Business Finance, we can go through all the finance options available and find the best solution for you and your business, enabling you to invest now for a brighter, cleaner future.
To discuss asset finance and the solutions available contact our team on hello@custombusinessfinance.co.uk or call 0114 442 8008.
For more information on asset finance, please visit www.custombusinessfinance.co.uk/asset-management