An affordable route to EVs
Saul Furse, managing director of eMobility and Vehicle Solutions at Radius, looks at how businesses can make electric vehicles fit their budget
While more and more business owners and fleet managers are looking at introducing electric vehicles (EVs) as part of strategies to take their businesses towards net zero goals, many are discouraged by their high purchase price.
Analysts in the past predicted that EV prices would decrease to reach at least the level of conventionally fuelled vehicles, if not below. However, that doesn’t seem to be happening any time soon.
For those who worry that electric vehicles are too expensive for their budget, it’s time to delve deeper to see how solutions can help companies reach their net zero goals, whilst also protecting margin.
So, for those who are still unsure of how to progress: how can businesses make sure electric vehicles fit within their budget?
EV hire
Vehicle hire is a great solution to start your green transition. If electric vehicles are too expensive to buy upfront, EV hire solutions are affordable and packed with benefits. Offers can be tailored to meet your exact business needs and requirements. To make it easier, at Radius we provide support with vehicle insurance, cameras, and charge cards and points – an all-in-one solution for your convenience.
Hiring is a flexible, convenient, and a more affordable way of getting a vehicle for business use. It offers transport managers a choice of vehicles and duration of contract as well as the option of the latest van models for however long it is needed.
Businesses don’t have to worry about value depreciation or maintenance and repair costs as these are usually included in the hire agreement. And ultimately: it’s cheaper to hire an electric vehicle than to buy it.
Depending on a business’ demands, there are two hire options – flexible hire and long term hire – each with its own benefits.
Flexible hire gives the option to hire an electric vehicle for any period of time of up to three years and the extra benefit of returning it at any time. Plus, it includes service, maintenance, repair, replacement, recovery, road fund licence and tyres. It’s a great option for short business contracts when there is uncertainty about how long the EV will be needed for.
Long term hire is the ideal solution for when an EV is needed for an extended period. It can also be customised to meet business requirements. This is the best choice for businesses who know their demands for the long term. And it will prove to be the less expensive option, too.
EV leasing
Forking out thousands of pounds to buy an EV can make quite a hole in a budget. But leasing one might be just the solution to get electric company vehicles. Leasing is a great way to save money and still get the electric vehicle wanted. Fleets can get a lease for two or three years, with or without maintenance, and can enjoy fixed monthly payments, that are usually lower than other alternatives.
What’s more, a lease usually has more flexible terms, is easier to obtain, and alleviates any worries about vehicle depreciation. At Radius, we offer leases that include repair, maintenance costs, new tyres and other perks (such as the latest models).
It’s also important to talk around the running costs, should companies make the shift to EVs. There are many elements which see cost savings for company fleets including:
- Electric vehicle maintenance costs – The electric motors, batteries and transmission of electric vehicles have fewer moving parts than those of a petrol or diesel vehicle, and this means you can save money, as they are cheaper to maintain and repair.
- Electric vehicle charging costs – some energy providers now offer EV-focused tariffs that can help further with running costs. And with solutions such as Radius Chargepoint and Radius Fleetone REV there are multiple ways in which transport managers can protect margin whilst transitioning to EVs.
- Insurance – As recently as 2019, EV insurance costs were traditionally more than those of combustion vehicles, but this is now starting to change.
There’s no denying that, as the UK government looks to end the sale of new diesel and petrol vehicles in 2030, electric vehicles are the future. So, it’s time to jump on the green train and future-proof businesses with electric vehicles. By hiring or leasing an EV, businesses can start that journey in a way that won’t negatively impact their budget.
More information on cost-effective methods of joining the energy transition can be found at the Radius Vehicle Solutions website.
