With traditional fuel prices in a near-constant state of change, many consider the costs involved in buying or leasing electric (EV) or plug-in hybrid electric vehicle (PHEV) a worthwhile investment.
We wanted to explore some of the costs of hybrid and electric vehicles so that you can make the most informed decision, based on your particular requirements.
THE COSTS INVOLVED
When you are purchasing an EV or PHEV, the first cost that you need to consider is the overall price of the vehicle itself. Whilst some of the smaller models have a lower purchase cost, they often have a reduced range per charge. If you are looking for something with more power or more technology, then the cost will rise.
The second cost that you need to consider is the purchase and installation of the charging points, but there are Government grants available for commercial locations.
When it comes to leasing you pay fixed monthly payments, with most agreements including maintenance and servicing. The leasing company takes the risks of residual value, therefore you do not have to worry about any depreciation. The vehicles are returned back after the term has passed and you can take out a new lease on a newer edition.
- Leasing frees up working capital
- Fixed monthly costs allow you to budget easily
- Low initial outlay improving cash flow
- No depreciation of vehicle losses
- RFL and servicing, unless otherwise agreed, included
- MOT and Breakdown is covered
- You will gain access to the GKL Fleet Management portal
If VAT Registered:
- VAT payable monthly rather than altogether if VAT registered 50% re-claimed on the finance element
- If the car is a pure business lease (eg pool car) the VAT is 100% re-claimable
- 100% re-claimable on all commercial vehicles