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HomeFarming News‘Making the switch to an EV can benefit drivers financially in the...
Catherina Cunnane
Catherina Cunnanehttps://www.thatsfarming.com/
Catherina Cunnane hails from a sixth-generation drystock and specialised pedigree suckler enterprise in Co. Mayo. She currently holds the positions of editor and general manager at That's Farming, having joined the firm during its start-up phase in 2015.
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‘Making the switch to an EV can benefit drivers financially in the long run’

Graham Conway, managing director at Select Car Leasing, suggests that making the switch to an electric vehicle can benefit drivers financially in the long run.

Increasingly more drivers are opting to drive electric vehicles.

The automotive industry is pushing to reduce the number of vehicles reliant on fossil fuels on our roads, and electric vehicles play a big part in making that possible.

However, a lot of drivers are being put off electric vehicles because they are unable to afford the initial costs of making the switch.

Graham has also shared his expertise on why leasing rather than buying can help drivers to afford to switch to electric vehicles.

It is no secret that electric vehicles are more expensive than vehicles that use diesel or petrol when it comes to the initial purchase.

Leasing a vehicle

One way to avoid these expenses is to lease your vehicle instead of buying it.

Leasing a vehicle is not too different from renting a house.

You pay an ‘initial fee’ – which works to bring down the cost of your monthly payments – you set the length of your contract, which is typically two to four years, and you have an annual mileage stipulation.

And for the majority of people, leasing a vehicle is much more cost-effective than purchasing a vehicle outright.

Furthermore, you will no have any cash tied up in the car, meaning you can change the vehicle you are driving every few years.

This makes leasing a very attractive option if you are looking to make the switch to an electric vehicle.

Drivers who do make the switch to an electric vehicle will find that it comes with several significant financial benefits in the long run.

Some of the key savings that can be made include lower fuel costs, big reductions in running costs and tax incentives.

It is estimated that annual fuel costs for an electric vehicle are 58% less than the costs of refuelling a diesel or petrol-reliant vehicle.

What you could save 

Average drivers could expect to save anywhere between £500 to £1,000 a year in fuel costs per year by switching to an electric vehicle.

What is more, is that electric vehicles are almost certain to come with much lower maintenance costs.

One study suggests that maintenance costs for electric vehicles are, on average, 23% lower over three years or 60,000 miles, compared to that of diesel or petrol-reliant vehicles.

The option of leasing an electric vehicle is also suitable for business owners who use company cars.

Since April 2020, businesses have been able to claim back 100% of an electric vehicle’s costs against the profits of the year of purchase.

BiK (Benefits in Kind) taxation between 2020 and 2023 is relatively low, meaning that employees who drive an EV company car can take home more of their pay.

It is hard to argue against the long-term savings that an electric vehicle can bring.

Couple that with the long-term environmental benefits of electric vehicles, and it can only be a good thing to see the numbers of these types of vehicles on our road increase.

More drivers opting for EVs

Increasingly more drivers are opting to drive electric vehicles.

The automotive industry is pushing to reduce the number of vehicles reliant on fossil fuels on our roads, and electric vehicles play a big part in making that possible.

However, a lot of drivers are being put off electric vehicles because they are unable to afford the initial costs of making the switch.

Graham has also shared his expertise on why leasing rather than buying can help drivers to afford to switch to electric vehicles.

It is no secret that electric vehicles are more expensive than vehicles that use diesel or petrol when it comes to the initial purchase.

Leasing a vehicle

One way to avoid these expenses is to lease your vehicle instead of buying it.

Leasing a vehicle is not too different from renting a house.

You pay an ‘initial fee’ – which works to bring down the cost of your monthly payments – you set the length of your contract, which is typically two to four years, and you have an annual mileage stipulation.

And for the majority of people, leasing a vehicle is much more cost-effective than purchasing a vehicle outright.

Furthermore, you will not have any cash tied up in the car, meaning you can change the vehicle you are driving every few years.

This makes leasing a very attractive option if you are looking to make the switch to an electric vehicle.

Why make the switch?

Drivers who do make the switch to an electric vehicle will find that it comes with several significant financial benefits in the long run.

Some of the key savings that can be made include lower fuel costs, big reductions in running costs and tax incentives.

It is estimated that annual fuel costs for an electric vehicle are 58% less than the costs of refuelling a diesel or petrol-reliant vehicle.

Average drivers could expect to save anywhere between £500 to £1,000 a year in fuel costs per year by switching to an electric vehicle.

What is more, is that electric vehicles are almost certain to come with much lower maintenance costs.

One study suggests that maintenance costs for electric vehicles are, on average, 23% lower over three years or 60,000 miles, compared to that of diesel or petrol-reliant vehicles.

Benefits

The option of leasing an electric vehicle is also suitable for business owners who use company cars.

Since April 2020, businesses have been able to claim back 100% of an electric vehicle’s costs against the profits of the year of purchase.

BiK (Benefits in Kind) taxation between 2020 and 2023 is relatively low, meaning that employees who drive an EV company car can take home more of their pay.

It is hard to argue against the long-term savings that an electric vehicle can bring.

Couple that with the long-term environmental benefits of electric vehicles, and it can only be a good thing to see the numbers of these types of vehicles on our road increase.

Previous article on the legal implications of leaving ‘aggressive’ notes on vehicles

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