Myth Busting: Electric Vehicle Fleet Prices – Worth the Cost?

Fleet prices can be drastically reduced through the use of electric vehicles within your fleet. Read on to find out how.
piggy bank, saving money and vehicle tracking costs

When it comes to acquiring electric vehicles for their fleet, fleet managers may easily be put off. This is due to envisaged total fleet prices, fears of a low return on investment and familiarity with combustion engine vehicles.

However, fleet managers should not fear electric vehicles. In fact, the opposite: Electric vehicles are the future of transport. This is because acquiring electric vehicles has become easier than ever before, and that fleet managers can see their fleet prices reduce over time. 

This post outlines why electric vehicles are a strong addition to your fleet. 

Fleet Prices: Electric Vehicles vs. Combustion Engine Vehicles

Fundamentally, businesses with fleets should be aware of the TCO of their vehicles when it comes to their overall fleet prices. According to a recent study, only 1 in 10 companies take the total fleet cost of ownership into account when acquiring vehicles.

Businesses should also be aware that TCO isn’t just the lease or the outright purchase. The key factors for TCO fleet prices include

  • Insurance
  • Fuel expenses & value of vehicles
  • MOT tests, vehicle servicing
  • Car tax
  • Vehicle depreciation

Acquiring electric vehicles pays dividends for lowering your fleet prices. Although this is down to a few factors, car tax plays a key role here. 

Electric Vehicles Reduce Fleet Prices Through Car Tax

Tax rates for new cars depend on the following factors:

  • Fuel type
  • Engine size
  • CO2 emissions 

Car tax is essentially set up and based on the type of fuel your vehicles use. Higher tax rates apply for environmentally harmful fuels, including diesel and petrol. Moreover, combustion engine vehicles are also subject to taxation, influenced by their CO2 emissions. 

As electric vehicles don’t produce any CO2 emissions and use electricity as fuel, you can save a whole manner of fleet expenses – lowering your fleet prices. Considering the costs saved with one vehicle, this becomes extremely evident when multiplied over the number of vehicles in your fleet.

Read More: Calculate Individual Tax Rates For Vehicles

H3: The Lower The Fuel Prices, The Lower Your Fleet Costs

You can also save a fortune on your fleet costs with lower fuel prices. Electric vehicles, as mentioned above, consume electricity, rather than diesel or petrol. Research suggests that vehicle owners can save around £850 a year alone, just by swapping their combustion engine vehicle for an electric one.

If a driver drives a total distance of around 7,600 miles a year, the average petrol cost is around £1,200 a year. In contrast, the average electricity cost for an electric vehicle is around £340 a year. 

Reduce Your Fleet Prices With Electric Vehicles

If you have concerns about switching your combustion vehicle-based fleet to an electric one, you can put these fears to bed. Electric vehicles aren’t only the future of transportation through technology, they are also actively encouraged by the government. 

This is because you can save a fortune in car tax and fuel costs – not to mention your business’ carbon footprint. 

Whatever type of vehicle you use in your fleet, you can count on Vimcar’s solutions to modernise your approach. Use a tracking solution to analyse where all of your vehicles are at once, which driver is at the wheel as well as their route history. You can also opt for Vimcar’s Driving Style Analysis (DSA) as an add-on to improve driving behaviour.

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