Leasing An Electric Van: What UK Businesses Need To Know

Leasing An Electric Van: What UK Businesses Need To Know

Whether your business has one single van or a fleet of vans, such a vehicle can be the lifeblood of your business. Vans are used to transport people, as well as machinery, tools, equipment and product, and hence are essential vehicles for couriers, maintenance engineers, tradespeople, mobile workshops, removal companies, logistics companies and any business delivering product. And because company vans are so important to a business, it is easy to grow an attachment to them, which raises some reluctance when it comes to making big decisions like transitioning to an electric van. However, the numerous benefits of doing so should make this switch much less daunting.

The benefits of driving an electric van

The days of a driver having range anxiety are long gone, and overcoming this is an essential step to make in the transition to electric driving. By definition, vans do a lot of mileage on the road and it is critical that they can get from A to B with no fuel issues. The development of electric vehicles (EVs) over the last decade has seen a seismic improvement in battery size and capability, and the national charging network in the UK, so with a little planning and some minor shifts in driver behaviour and routine, it is easy to keep your electric van sufficiently charged. And the business will benefit too, because EV driving means:

• Zero CO2 emissions

• No issues with the increasing amount of UK clean air zones in towns and cities you may be visiting nationally

• Lower maintenance costs due to EVs having fewer moving parts and hence less that can go wrong

• Cheaper fuel costs compared to petrol and diesel vehicles

• Grants and tax incentives for EV usage

How does leasing an electric van work?

Perhaps the most popular scare story about EV driving is the upfront cost of purchasing an EV. It is true that this is a developing industry and market sector, and while EVs are coming down in price all the time, they do still represent a significant upfront investment. However, the cost of this to a business can be spread evenly over a longer period by leasing an electric van. This then becomes a much more manageable cost which is easier to budget for. This is how electric van leasing works:

• Deposit – You pay a small upfront deposit for the van, usually between three to six months’ lease cost.

• Agree the monthly lease cost – This will cover exclusive use of the van, road tax and usually a maintenance option also.

• Agree a lease term – You can usually lease a van for between 12 months and four years.

• Agree an annual mileage – There are restrictions on the annual mileage as this is how leasing companies calculate their depreciation costs, you should be able to calculate an accurate annual mileage and this influences the monthly lease cost you pay.

• Decide a maintenance option – Do you want to include a service and maintenance option in the monthly fee (using service and maintenance providers arranged by the leasing company) or arrange this externally to the lease agreement? Many fleet managers agree a bulk service and maintenance agreement for all their vehicles, plus brand new vehicles should face minimal such costs in the first few years, so it may be financially beneficial to arrange your own agreement.

• Return – At the end of the lease term you return the vehicle to the leasing company and have the option of leasing another brand new electric van.

How does electric van leasing benefit a business?

There are several ways that a business can benefit from leasing an electric van rather than purchasing one:

• Lower upfront cost

• Affordable monthly payments which are easy to budget for

• No depreciating asset on the books

• Savings on fuel usage and service and maintenance costs

• Large range of vans in terms of size and brand

• Grants and tax incentives to help with making the switch

• Flexible lease terms to suit the business

• Expanding public charging network, plus the option of installing chargers in the workplace.

Considerations when making the switch to electric van leasing

It is still important that the business carefully considers making the switch to electric vans and whether it is the right time to make this commitment. Things to think about include:

• Daily range – Can the type of electric van you want achieve the daily mileage range you need?

• Charging – Is it cost-effective and practical to charge the vans overnight at a driver’s home, in the workplace, or to rely on public charging?

• Space – Can you achieve the cargo space you need with the electric vans on the lease market?

• Access – Do the electric vans available allow you sufficient loading access for people, machinery and product etc?

• Usage – VAT registered businesses can reclaim 100% VAT on the monthly lease cost of an electric van if it is used exclusively for the business. Does this work for your business?

Contact Pink Car Leasing for electric van leasing

At Pink Car Leasing we have a wide range of electric vans available from some of the biggest motoring brands in the world. We have small vans, such as the Citreon e-Berlingo, medium vans, such as the Vauxhall Vivaro, and large vans, such as the Fiat E-Ducato. So contact our team at Pink Car Leasing and we can discuss the benefits of electric van driving and agree a cost-effective electric van leasing deal for your business.