At Pike + Bambridge, we are passionate about changing the way the world buys cars. We think a huge part of this is changing the impact cars have on our environment.
We launched our Green Division in 2012, and held our first Tesla event in 2014, when much of the motor industry was scoffing at the likelihood of electric vehicles becoming mainstream. Fast forward six years and Tesla’s market cap has risen to make it the most valuable car company in the world in recent weeks. The ‘future’ world of electric mobility is here to stay and it is here now.
We are working with many of our clients on our “Fleet Net Zero” project, aimed at three main pillars that we believe can help address the climate emergency we all face, at the same time as improving profitability for the SME businesses we serve.
Tax Savings
There are three main areas of tax saving worth considering when looking at the shift to a greener fleet:
- Corporation Tax costs – many vehicles now fall in to only having 85% of the lease allowable against corporation tax due to emissions. Hybrid and electric cars tend not to have any such restriction.
- Employer payroll costs - with electric cars in particular attracting a 0% benefit in kind rate, National Insurance Contribution savings can be significant for company car fleets.
- Employee P11d tax savings – at a time when employee costs are so critical to keep under control, electric cars offer a way of boosting employee morale, and supporting employees in staying away from public transport, all while saving cost and supporting the environment.
Running costs
Hybrid and electric vehicles offer obvious cost savings over petrol and diesel cars, in particular the lower running costs associated with using electricity.
As an example, 15,000 miles a year may cost you around £820 per annum in home charging costs, (assuming circa. 5600 kWh).
In comparison, a typical diesel car, giving 50 miles per gallon would cost you around £1650 in fuel costs at today’s prices.
There are also road tax considerations as well as sometimes attracting preferential parking costs.
Maintenance is also typically less expensive for electric cars, with no oil filters etc. and much less complexity in the motor than in a typical engine.
Corporate Social Responsibility
As the World Health Organisation recently recognized, “…the COVID-19 pandemic…has…had a noticeable positive impact on our environment in just few months. In many places, reduced economic and transport activities brought about by measures to reduce the spreading of the pandemic have resulted in the short term in cleaner air…”
Many of our clients have recognized there is a shift in attitudes amongst the business community towards retaining some of this environmental benefit.
Net Zero Fleet DueDil
A key component of our Fleet DueDil service is an analysis of the opportunities to move businesses further down the road to Fleet Net Zero status.
It is crucial businesses capitalize on the cost savings now available, and adjust to the changing attitudes amongst consumers and businesses alike.
Get in touch now to arrange your Fleet Net Zero consultation. Contact business@pikeandbambridge.co.uk to schedule your personalized video call.
