For those who have never owned an electric vehicle or EV before, the costs involved and what they think will be a considerable initial outlay may be off-putting.
It is important to remember, however, that many of the savings when it comes to electric cars are linked to refuelling, something that can be hard to grasp for those of us used to filling up our traditional petrol or diesel-fuelled vehicles on the station forecourt every couple of days.
Electric cars get their energy from a battery that is converted into power by an electric motor. When recharged, this battery stores electrical energy that is ready to use to propel the wheels. Most electric cars don’t have a gearbox or clutch, relying instead on a brake and an accelerator, meaning that they are usually automatic.
The cost of running an electric vehicle is significantly lower than that of a petrol or diesel car due to the amount of charge required to replenish an EV compared to a vehicle propelled by a traditional internal combustion engine. The option to take advantage of home charging using off-peak energy tariffs can bring the cost down further.
The average cost of buying an electric car in the UK is £48,000, with prices ranging from just under £15,000 for basic models to more than £300,000 for a top-of-the-range luxury vehicle. Most non-luxury models cost somewhere in the region of £30,000, with more cheaper options expected to enter the market over the next few years. These are not insignificant sums for many and can be a barrier to owning a more environmentally friendly vehicle even if sustainability is an issue close to your heart.
The savings available to those who drive an electric vehicle come primarily from the running and fuelling costs, as well as lower maintenance costs, tax breaks and exemptions. Read on to find out more about how these costs and savings stack up.
Many employers offer free charging points to their employees, who then have the option to charge their vehicles during the working day, ready for their journey home.
It may be cost effective for you to install a domestic charging box if your circumstances allow. These cost approximately £800, but grants are available to help with this. Businesses can also be eligible for these grants should they wish to install several charging points for their employees.
Another saving when it comes to running costs is from the exemption of electric vehicles from charges such as London’s Ultra Low Emission Zone (ULEZ) and Congestion Charge – EVs are currently exempt from both until at least 24 December 2025.
Maintenance costs for electric vehicles are often considered to be lower than those for traditional diesel or petrol-powered cars. The mechanism of an EV engine is not as complex or prone to wear and tear, so the chances are that it’s upkeep will be less costly. Battery degradation is not usually a cause for concern and the majority of electric vehicle batteries come with a lengthy manufacturer’s warranty.
When you lease an electric car, you also have the opportunity to include an additional maintenance package that will take away any concerns about potentially expensive repairs down the road, allowing you to budget a fixed amount for maintaining your vehicle and regular tyre changes.
Leasing an electric car removes any concerns about the significant initial outlay involved in having this type of vehicle. Paying for an electric vehicle through monthly leasing payments makes it easier to budget and can make EVs more accessible to those who would otherwise be unable to afford them.
If you’re keen to find out whether an electric vehicle leasing plan could be cost effective for you, contact one of Leasys’ experienced customer care advisors to help create a tailor-made package to best suit your needs.
Business customers looking to lease an electric car may also be eligible to deduct VAT costs from their monthly lease payments. Contact Leasys to find out more.
