Electric Vans – Part 2
According to the SMMT, the number of delivery vans on UK roads has increased by 59% since 2000 and it is vital for British businesses to stay ahead of the rising costs and environmental legislative requirements of their delivery fleets.
Going greener doesn’t just make environmental sense, but it is a sound commercial decision, too: cutting emissions can help create customer loyalty, with more consumers than ever choosing a brand based on the sustainability of their operations.
What are the benefits of owning an electric van?
Business fleets who use electric vans benefit from:
- Low Running Costs
Electric vans are considerably cheaper to run than diesel or petrol alternatives because the cost per mile of electricity is lower.
- Cheaper to Maintain
There are fewer moving parts in electric vehicles and they are not so hard on their brakes, so maintenance costs are significantly reduced.
- 100% Discount on London’s Congestion Charge
All vans which meet the Euro 6 emission standard, emit 75g/km of CO2 or less and can travel 20 miles without emissions are exempt from the daily Congestion Charge of £11.50 and owners will only have to pay an annual £10 registration fee.To put this into context, if you drove in London every day in an older van, it would cost you almost £3000 a year.At the moment hybrid vans will also tick these boxes, and could save a business thousands of pounds in charges every year but the charge rules are set to change again in April 2021 so that only fully electric vehicles will be exempt from the charges.
- No road tax or Vehicle Excise Duty (VED)
Electric vans produce zero tailpipe emissions. This makes them ideal for improving air quality, especially in urban areas, and reducing harmful CO2 and NOx emissions.
- Image booster
Having an electric van or a whole fleet of electric vehicles, demonstrates to your customers that you take your environmental responsibilities seriously.
- Free or reduced-charge parking in some London boroughs
- Tax incentives
A range of tax incentives for business users including Benefit-in-Kind (BIK), salary sacrifice schemes and capital allowances.
- Exemption from ‘Electric Street’ fines
- Freedom to travel in the new Ultra Low Emission Zone (ULEZ) and Clean Air Zones (CAZs)
In the new London Ultra Low Emission Zone, petrol vans must meet Euro 4 standards to avoid charges and for diesel van drivers, vehicles must meet Euro 6 standards. Transport for London (TfL) will be expanding the size of the ULEZ in 2021 and van users will have to register to pay a daily charge or risk a £160 fine if they enter the zone in a vehicle that doesn’t meet the standards. Cameras capture the vehicle number plate automatically and check vehicle databases to find out whether the driver is liable for a charge.Several UK cities have already implemented Clean Air Zones and more cities across the UK will follow suit in 2020. Driving in these areas may cost van drivers if their vehicles don’t match environmental standards.
- Automatic gearbox – all members of the team will be able to drive an electric van
The potential savings of electric commercial fleets are huge. According to Deloitte, fleet owners’ biggest expenses after depreciation (44%) are fuel (22%) and maintenance and repairs (11%) and EVs could slash these costs by more than half.