Rivervale returns as the sponsors of our motoring section again this month. This time around, they turn their focus to the issue of motoring on the environment, exploring air pollution and the success of electric cars
HOW CAN YOUR BUSINESS PREPARE FOR THE ELECTRIC REVOLUTION?
The government is taking tough new measures to reduce air pollution. From increasing road tax charges on Co2 emitting vehicles and creating clean air zones which charge the most polluting vehicles to enter, to the eventual ban on sales of all new petrol and diesel vehicles by 2040. With all these changes taking place there has never been a better time for your business to join the electric revolution, and there are financial supports available to help you achieve a zero emissions future.
“While a petrol or diesel engine are still the most popular choice of engine for the majority of drivers, at Rivervale we have seen a considerable rise in the number of enquiries into electric and hybrid vehicles for both personal and business use. We expect this trend to continue as drivers and companies become more aware of their carbon footprint and the financial benefits that emission free and low emission vehicles can offer. In response to increased interest, and to make zero and low emissions vehicles easy to find, we have recently set up a green leasing page on our website so customers can view all their options in one place,” said Simon Fuller, New Vehicle Director at Rivervale.
FINANCIAL HELP FOR BUSINESSES GOING EMISSIONS FREE
Currently in the UK, there are two main ways a business could save some money in their efforts to go emission free.
#1 Plug-In Electric Grant
The government offer money off brand new vehicles regardless of whether they are a personal buyer or a commercial buyer. Vehicles included in the grant are separated into different categories which each have varying levels of financial support.
Category 1: Cars with C02 emissions under 50g/km and which can travel at least 70 miles with zero emissions.
Category 2: Cars with C02 emissions under 50g/km which can travel at least 10 miles with zero emissions.
Category 3: Cars with C02 emissions between 50g/km and 75g/km which can travel at least 20 miles with zero emissions.
Vans: Those with C02 emissions less than 75g/km and which can travel at least 10 miles with zero emissions.
Cars in category 1 would be eligible for a 35% contribution of the purchase price up to a maximum of £4,500. Those in categories 2 or 3 can also receive a 35% contribution but up to a maximum of £2,500. For vans, a contribution reflecting 20% of the price is available up to a maximum of £8,000.
These contributions will automatically be applied to all vehicles eligible, the customer does not need to do anything. Exempt from these contributions are any cars in category 2 or 3 which have a recommended retail price over £60,000.
#2 Workplace Charging Scheme
This scheme is funded by the governments Office for Low Emission Vehicles (OLEV) and is for any business, charity, or local authority.
The scheme offers a £300 contribution to any electric charge point installed, up to a maximum of 20 points, greatly reducing the overall cost.
To be eligible a business must show the following:
Off street parking: A business must show they have an area off road which is dedicated to parking for staff members or fleet vehicles which is suitable for charging point installation. Applications for charge points for customer use only will not be successful.
A need for electric vehicles: A business does not need to currently own or lease any electric vehicles for the grant, they only need to show the business has a need to use electric vehicles in the future.
In return for the grant, the charge points must be maintained for 3 years and usage data supplied to the OLEV.
Applying for this grant can be done easily online at www.gov.uk/government/collections/government-grants-for-low-emission-vehicles. If your application is successful you will receive a voucher code via email which can be used to gain your discount from any OLEV approved installer.
Fuel costs: Considering an average cost of £2-£4 to provide 100 miles of charge for an electric vehicle compared to a £12-£15 cost for 100 miles of petrol or diesel, the fuel cost savings a business could make by going electric are clear.
Pollution charges: The Congestion Charge and upcoming T-Charge will be avoided, saving your business over £20 each day you need to drive through the capital.
Future proofing: From 2020 it is likely more charges will be applied to petrol and diesel vehicles seen as the most polluting, going green now saves you these costs in the future.
Reduced maintenance costs: Electric vehicles have fewer moving parts than a combustion engine so cost less to maintain, saving your business money every time a service is due.
Road tax: The road tax charge for zero emissions vehicles is £0 saving even more money per vehicle.
Employee savings: The Benefit-in-kind rate for electric cars is 0, meaning encouraging your employees to switch to an electric vehicle as their company car will save them money as well.
Company image: Companies who are seen to be acting to reduce emissions are often looked upon more favourably than those who are not.
Building a customer relationship: If you have customers visiting your place of business, why not offer the opportunity to plug in their electric vehicle while they are there. This kind of customer service may help build repeat business. By going emissions free, your business will also be helping the environment as well as reducing air pollution, which has been shown to cause many significant health problems.
HOW LEASING CAN HELP MY BUSINESS GO EMISSIONS FREE
Vehicle manufacturers will now be increasingly committing themselves to making advances in electric technology. Due to this new focus, the capabilities of electric cars and vans may increase over a relatively small passage of time. To further future proof your business by ensuring your vehicles have the best possible technology available, you may want to consider car and van leasing. By entering into a contract hire contract, you can hand your vehicle back after a period of 2-5 years and receive a brand new one complete with the latest electric improvements.
Additionally, the initial outlay when leasing a new vehicle is considerably less than when purchasing a vehicle, and after this initial cost, fixed monthly rentals allow for easy budgeting. So, it may be more affordable for your business to invest in new electric or hybrid vehicles than you imagined.
The Rivervale team are always happy to offer businesses advice on the best vehicle choice for their needs.