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Do not focus on the purchase/P11D price when choosing electric vehicles, advises expert

Businesses deciding whether plug in hybrid and battery electric company cars offer good value for money should not be deterred by their higher purchase price or P11D value.

That’s the advice of Lee Brown, managing director of Grosvenor Leasing and Interactive Fleet Management, who explains that, while the initial outlay on electric vehicles is higher, their whole life cost while on fleet works out cheaper in the long run compared to equivalent petrol or diesel models.

“Let’s take, for example, a Skoda Octavia Diesel Estate 2.0 TDI 200 vRS 5Dr DSG,” says Lee. “This is a diesel car with a P11D value of £35,010. Its electric equivalent is the Skoda Enyaq IV Estate 150kW 80 Loft 82kWh 5Dr Auto which has a P11D value of £40,915.

“At first sight, the electric model looks expensive and it would be easy to assume that, at almost £6,000 less, the diesel is better value.

“However, if you look at the whole life cost of each vehicle it reveals a very different picture.

“The whole life cost takes into account factors such as running costs, maintenance, tax, fuel/charge and future resale value and shows that the electric model is much better value over its period on the fleet.

“Using the whole life cost calculation, the diesel model works out at £860.50 per month whereas the electric sits at £726.51 per month, which means the electric model is £6432 cheaper overall during a four year period as a company car.”

The Grosvenor Group is the UK’s largest privately-owned contract hire and fleet management specialist, and its 0Zone solution which has been helping companies make the smooth transition to ultra-low emission and electric vehicles since 2017 has won multiple awards for its advice and support around greener fleets.

Companies such as Glenmorangie Whisky, Weetabix, Whistl and Tata Steel have all benefited from Grosvenor’s advice and support, and by developing policies based on whole life costs has been the stimulus for many companies to see the long-term benefits of moving to electric vehicles.

As a result, over 55% of all new company cars delivered by Grosvenor Leasing, and its specialist fleet management business, Interactive Fleet Management, have plug-in technology.

As the choice of electric cars entering the UK market is growing rapidly, more than 60% of drivers say they would consider an electric vehicle as their next car.

“Once the whole life cost policy is in place, and the drivers are on board with the process, the transition to a zero emission future will effectively take care of itself,” concludes Lee. “It’s just important to make that initial shift from each vehicle’s up front cost to its overall time on fleet when budgeting around vehicle choices.”

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