Going Electric – the real benefits

One in every eight new cars is electric. Mainstream and more affordable, there is more to the EV experience than just cheaper running costs

Most people who now drive an EV have made the switch from fuel because they see going electric as a money-saving investment. And who can blame them? The benefits can be compared to solar panel installations or going to university. While the initial cost can be intimidating, it can be easily justified by the long-term savings. 

How going electric saves money

Not only are EVs cleaner environmentally they come with an array of individual and business tax incentives.

• Fully electric cars don’t require a road fund licence, making them free to tax.

• Hybrid cars are liable to vehicle tax as they still emit CO2 – savings will depend on levels of emissions.

If you are fortunate enough to have a company car, it is highly recommended that you request an electric or plug-in hybrid vehicle. 

As well as leaving a much smaller carbon footprint, the Niro EV model would cost the employee £27.79, this is around 90 percent less per month than the Niro Hybrid which costs £286.26. The reason? The BIK is much lower for electric vehicles due to the difference in CO2 emissions. Additionally, compare these statistics to similarly priced petrol and diesel models, with similar P11Ds, and the difference is crystal clear

For example, the Hyundai IONIQ comes with a hybrid or electric engine. The range of the electric model is 193 miles (310.6 km), at the cost of circa 3p per mile to charge. A full charge could cost around £6.37*, depending on where the vehicle is charged.

Conversely, the hybrid version can achieve 62.8 miles (101.07 km) per gallon. A petrol car’s range is naturally longer than its EV counterpart – however, say we only intend to go 193 miles (310.6 km). We averaged £1.80* for a litre of petrol, converted to gallons gives us £8.17 per gallon. At these rates, it would cost about £25.10 to fuel this vehicle.

The cost of refuelling the EV is 74.62 percent less than that of the hybrid engine. Although these figures may not be 100 percent accurate, it is undeniable that EVs save you money. 

*Energy and fuel prices were estimated at the time of writing and are subject to change.

Concerned about the electric range not being enough? Use Rivervale’s mileage calculator. 

EVs are cheaper to maintain

The cost of maintaining an EV is far smaller than its petrol and diesel counterparts.

Electric vehicles have significantly fewer moving parts, leading to a reduction in wear and tear. For example, due to how electric engines function, an EV will start to slow down quicker than a petrol car when the accelerator is not being pressed. This reduces the amount of stress placed on the brake pads – reducing the amount of wear that they receive over time.

Government Incentives

Although some previous government EV incentives were revoked in June 2022, efforts continue to tackle some key barriers to achieving a successful EV transition. 

The aims are:

• For at least 50% — and as many as 70 percent — of new car sales to be ultra-low emission by 2030, alongside up to 40 percent of new vans

• To enable the massive roll-out of infrastructure to support the electric vehicle revolution

• To set the stage for the biggest technology advancement to hit UK roads since the invention of the combustion engine

Charging an EV is easier than ever

The UK has benefitted from improved charging Infrastructure. The Government has pushed for a £20 million cash injection to boost the number of on-street electric vehicle charge points in towns and cities across the UK. This, in turn, will create more access to charge so you can charge your EV near home or at work. But that is not all. Consider the various other charging locations, such as supermarkets and car parks that offer free charging, and you are flying! 

In addition to these benefits, you don’t have to pay for parking while using a street car charger – a real plus if you begrudge paying the ever-rising parking charges. Oh, and don’t forget, these charge-parking spaces are reserved exclusively for EVs!

Fast charging has ‘rapidly’ improved – thanks to a rapidly expanding network of charge points. By the end of 2020, there were 20,964 devices. It is now up to 33,281 devices (August 2022), 57.1 percent of which host fast chargers and 18.3 percent rapid chargers.

Imagine this… Your electric Hyundai IONIQ 5 is on 10 percent battery (about 30 miles). You drive to the local supermarket for a quick food shop, plug a rapid charger into your car and return 18 minutes later to find your car is at 80 percent battery (about 240 miles or 386.24 km of range).

Convenient and cheap! In addition, Hyundai says that IONIQ 5 users only need to charge the vehicle for five minutes to get 100 km of range. This is quickly becoming industry standard and certainly alleviates any potential need for range anxiety. However, if you can only use a fast charger, a more affordable car such as the Nissan Juke can perform a fast charge from 20 percent to 80 percent in 60 minutes.

Home chargers provided added benefits. Installing of a home charging point adds value to any property with a drive or private parking – especially once the 2030 petrol and diesel car ban is implemented. Great news for homeowners.

Additional benefits

With the introduction of clean air zones in major cities now in full effect, it may be worth considering the switch and EV to avoid being charged. Clean air zones are designed to reduce carbon emissions within certain areas, predominantly dense cities. Drivers will be charged based on the CO2 output of their vehicle when driving in these zones. This is to incentivise more sustainable methods of transport, such as cycling, public transport and, of course, electric vehicles. 

Fully electric or hydrogen-powered vehicles are automatically exempt, as they don’t produce any exhaust emissions. Driving a non-exempt car through the London Ultra Low Emission Zone twice a week for a year would run up a cost of £1,248!

Finally, an extra benefit of EVs is that they often include the latest safety technology, letting you drive in style and comfort on longer journeys. Along with this, EVs are exclusively automatic vehicles, making the drive smoother. All the more reason to make the switch!

Interested?

Get in touch with Rivervale on 01273433480 to discuss EV leasing.