Transitioning to EVs: The Benefits of Electric Vehicles for Businesses

Electric vehicles (EVs) are rapidly gaining popularity as a sustainable and cost-effective solution for businesses. In this article, we delve into the benefits of transitioning to EVs and how they can revolutionise your business transportation, exploring the environmental benefits, potential cost savings, and the positive impact on your brand image that comes with phasing out petro and diesel cars. If you're thinking about switching to an electric vehicle, this is the guide for you. 

It goes without saying that a sustainable future is only achievable by dramatically cutting our carbon emmissions across all sectors and industry. The major countries such as the UK, the transport sector is responsible for emitting the most greenhouse gases, including more than that of electricity production, and accounts for around a quarter of CO2 emissions. If you have already considered an EV but haven't yet taken the plunge, it's likely that you've been put off by the perceived incovenience to petrol or diesel cars and vehicles. However, the quality of EVs and the infrastructure required to use and maintain them has become much more accessible and affordable, with increasing roll-out across homes and public areas such as city centres and motorway services. Many spaces across the public and private sector have installed charging facilities to make it easier for customers, employees and visitors. 

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Benefits of Electric Vehicles for Businesses (EVs)

From environmental advantages to cost savings and enhanced brand image, the advantages of adopting EVs are truly compelling. These cutting-edge vehicles can transform your business operations, drive sustainability, and pave the way for a cleaner and brighter future, hand in hand with exciting technology.

Better for the Environment

One of the most significant advantages of transitioning to EVs is the positive impact on the environment. Unlike conventional petrol or diesel-powered vehicles, EVs produce zero exhaust emissions, resulting in significantly reduced carbon dioxide (CO2) emissions and other harmful pollutants. By embracing electric mobility, businesses can play a pivotal role in mitigating climate change and improving air quality in their communities. Whether it's reducing greenhouse gas emissions or minimising harmful particulate matter, EVs offer a greener and more sustainable transportation solution.

Cost Savings

Electric vehicles offer compelling financial advantages for businesses. One notable benefit is the lower cost of fuel. EVs are more energy-efficient compared to internal combustion engine vehicles, translating into significant savings on fuel expenses. Additionally, maintenance costs are generally lower for EVs as they have fewer moving parts and don't require regular oil changes. With fewer maintenance visits and decreased reliance on fossil fuels, businesses can enjoy long-term cost savings while reducing their overall operational expenses.

Government Incentives and Grants for EV Adoption

Governments around the world recognise the importance of transitioning to cleaner transportation options and often offer various incentives and grants to promote the adoption of electric vehicles. These incentives can take the form of tax credits, rebates, grants or subsidies, helping businesses offset the initial costs of purchasing e-vehicles or installing charging infrastructure. By taking advantage of these government programs, businesses can not only reduce their upfront expenses but also demonstrate their commitment to sustainability and benefit from financial support to facilitate their transition to electric vehicles.

Positive Brand Image and Sustainability Initiatives

Embracing electric vehicles aligns businesses with sustainability initiatives and showcases their commitment to environmental stewardship. Customers and stakeholders increasingly value businesses that prioritise sustainability and make conscious efforts to reduce their carbon footprint. By incorporating electric vehicles into their fleet, businesses can enhance their brand image, attract environmentally-conscious customers and differentiate themselves from competitors. Adopting EVs is a tangible demonstration of a company's dedication to sustainability, showcasing their proactive approach to environmental responsibility and long-term sustainability goals.

Potential for Long-term Savings through Energy Efficiency

Electric vehicles are not just eco-friendly; they also offer long-term savings through energy efficiency. They have higher energy conversion rates compared to traditional internal combustion engine vehicles, meaning a larger portion of the energy they consume is converted into actual vehicle movement. This increased efficiency translates into lower energy consumption and potential cost savings over time. Additionally, businesses can explore opportunities for on-site renewable energy generation, such as solar panels, to power their EV charging infrastructure, further reducing their reliance on grid electricity and enabling additional long-term savings.

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Factors to Consider When Transitioning to Electric Vehicles for Business

Analyzing your business's transportation needs is crucial. Understanding the types of trips, distances traveled, and payload requirements will help you identify the most suitable EV models for your fleet. After all, electric vehicles use batteries for their power so you need to find one with the best range or that can easily make it to pre-planned charging points. 

Assessing your current infrastructure and determining the need for additional charging stations is vital to ensure uninterrupted operations and efficient charging for your EV fleet.

To effectively manage your electric fleet, it's important to comprehend the range and charging capabilities of EVs. Familiarise yourself with the different EV models available and their respective driving ranges, as well as the charging options such as fast charging or overnight charging.

Financial considerations and return on investment (ROI) play a significant role in the transition. While EVs may have higher upfront costs compared to traditional vehicles, the potential savings in fuel and maintenance expenses can lead to long-term cost reductions. Analyzing the financial benefits and estimating the ROI will help you make an informed decision.

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Overcoming Challenges in Transitioning to Electric Vehicles

Transitioning to electric vehicles may present some challenges, but with the right strategies in place, businesses can overcome them and embrace the future of transportation. Here's how to tackle common hurdles:

Addressing range anxiety

Improved battery technology and expanding charging infrastructure are mitigating range anxiety. With longer-lasting batteries and an increasing network of charging stations, businesses can confidently embrace EVs without worrying about running out of power. The UK Government has an action plan for addressing and implementing future infrastructure. 

Assessing operational impact

Transitioning to EVs requires assessing the potential impact on business operations as traditional vehicles are swapped for electric cars and vans. Identifying charging requirements, evaluating vehicle range, and planning for charging infrastructure installation are crucial steps in adapting your operations seamlessly.

Educating employees

Educating employees on EV usage and charging etiquette is vital for a smooth transition. Train them on charging procedures, battery management, and the benefits of EVs. This empowers employees to embrace the new technology and ensures efficient charging practices.

Collaborating with fleet management providers

Engaging with fleet management providers can provide valuable expertise and support. They can assist in analyzing fleet requirements, recommending suitable EV models, and implementing effective charging solutions tailored to your business needs.

Government Support and Incentives for Electric Vehicle Adoption

The British government's commitment to sustainability is paving the way for businesses to reap the rewards of electric vehicles (EVs) through grants and incentives. These incentives present attractive opportunities for businesses, making the switch to electric cars and vans more appealing than ever before.

Electric cars benefit from discounts of up to 35% (or £2,500, whichever is lower) off the purchase price. Whether used in business fleets or offered as company cars, this discount makes EVs a cost-effective and environmentally friendly option.

Business owners looking to transition to electric vans can also take advantage of substantial grants. With discounts of up to 35% (or £2,500, whichever is lower), electric vans offer comparable flexibility and loading capacity to their traditional diesel and petrol counterparts. Moreover, larger electric vans categorized as 'large' may qualify for even greater discounts of up to £6,000, making them an appealing choice for businesses.

In addition to purchase incentives, EVs offer significant tax benefits. These include exemptions from fuel duty, company car tax, vehicle excise duty, van benefit charges and fuel benefit charges. The enhanced capital allowance is particularly enticing, allowing businesses to claim the entire cost of an electric vehicle against taxable profits in the same year as the purchase. This provides an immediate and substantial financial benefits. Alongside the Government incentives for electric cars and hybrid vehicles, the usual tax benefits associated with vehicle use can be sought and claimed through claiming interest and depreciation. Plus, maintenace and repairs can sometimes be factored into your finance option to help your business avoid unexpected costs associated with wear and tear and operation of business vehicles. 

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How Businesses Can Finance Electric Vehicles

As with any vehicle purchase, it can be a costly exercise to obtain what you need, especially if transitioning a fleet of petrol and diesel vehicles to hybrid or fully electric ones. This can be done in one sweep or in stages to suit your business needs, with a handful of options for you to go electric. Businesses can apply for traditional business loans from banks or financial institutions to finance the purchase of electric vehicles. These loans typically offer flexible repayment terms and competitive interest rates, allowing businesses to spread the cost of the EV over time.

Leasing is a popular option for businesses that prefer to have access to EVs without the upfront costs of ownership. With an EV lease, businesses pay a monthly fee for the use of the vehicle over a specified period. Leasing offers flexibility, as businesses can upgrade to newer models at the end of the lease term. Additionally, some leasing agreements may include maintenance and service packages.

You can of course pay for EVs outright, but an alternative option is to speak to a broker and source finance in the form of an electric car lease, lease purchase or hire purchase. These options help to improve cash flow by avoiding the need for a large upfront payment, freeing up cash that would otherwise be spent on an electric car or van for growth in other areas of the business. Asset Finance & Refinance make it very easy to apply online or you can speak to our small dedicated team of advisors to find out more about how we can help you. 

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The RAC has a handy guide with everything you need to know about electric vehicles and preparing to use electric as your primary transporation fuel, which you can read here. If business owners are unsure about the best electric vehicles, buying an electric vehicle, the benefits for business or    , they may want to seek advice from the British Vehicle Rental and Leasing Association or other advisory outlets.

For assistance and advice on obtaining asset finance or refinancing for your business, contact our team by phone or email, or start an online application today.

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Disclaimer: Asset Finance and Refinance limited act as a licensed credit broker and not a lender, authorised and regulated by the Financial Conduct Authority, registration number 773835. All finance is subject to status and income. Applicants must be 18 or over, terms and conditions apply, guarantees and indemnities may be required. Written quotations on request. Certain exclusions for NI residents. Asset Finance and Refinance Limited can introduce you to a limited number of finance providers based on your credit rating and we may receive a commission for such introductions.
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