Which company car is right for you?
Five years ago, the choice for the company fleet executive was simple: Petrol or diesel, and it all boiled down to which of the two provided a better return on your investment in terms of reliability and miles per gallon.
Now there are two new players in town – hybrid and electric, making the choice in buying or leasing for your company’s fleet even more complicated.
Or is it? Despite the seemingly bewildering choice, the arrival of electric cars brings new options to the table, and the choice gives companies better value for their fleet budgets.
Electric Fleet Cars
With electric cars costing more On The Road than traditionally-fuelled vehicles, fleet buyers tend to overlook them and plump for a vehicle with a lower up-front cost. But is this a mistake?
The fact is that new electric vehicles are eligible for the government’s Plug-In Car Grant – currently capped at £5,000, making them immediately more attractive. But on average, a petrol, diesel or hybrid vehicle still makes the better buy at this point.
But if you factor in running costs, the comparison becomes a lot more competitive. An electric vehicle can cost just 2p per mile to run. Even the top-end executive models weigh in at as little as 6p per miles Compared like-for-like, that’s £9 per long journey, compared with a full tank of diesel costing £50.
Vehicle Excise Duty is also free on an electric vehicle, but it’s also free on (most) hybrids depending on the emissions of their “conventional” drive. But with cleaner diesel and petrol cars, this is one cost that is converging. The average large executive saloon with leaner-burning diesel engines only attract Band E VED, and that’s only £130 per year. However, tighter company margins may mean that even this £130 charge is important to you.
There are advantages to all types of car:
Petrol: Ease of use, ease of servicing, lower initial costs
Diesel: Lower costs for long-distance drivers
Hybrid: “Best of both worlds” solution, ideal for mostly urban use.
Electric: Very low running costs, increasing EV charging point network, but reliability still a mystery
So what’s best? Of course, the best solution – as ever – is not to put all your eggs in the one basket, and go for a mixture of all four, with the correct vehicle assigned to the correct role or driver.
Speak to the experts at Flexed to help you decide on the correct mix of vehicle for your company fleet.