Executive Summary
There are some real key factors to get right when assessing the operating cost of a new electric van.
Is it possible to switch to electric vehicles today and save on costs? Absolutely. The best-case scenario for fuel and driving efficiency shows that there are savings to be made, provided the lease cost of the vehicle is correct.
But it is not as simple as that. You can’t operate an electric van and expect your balance sheet to automatically improve. The capital cost and available discounts will also improve over time making the argument more compelling.
Until then, you need to be very careful when making a decision on electric vans, and very sure you understand the pitfalls that you may encounter.
Electric vans may well be the future, but we need those that drive, and operate them to be educated that they are working on a fine line. Cost of electric, driving style and the miles driven for each KW of energy used are vital measures that need to be controlled, more so than in an equivalent diesel vehicle.
The potential for catastrophic differences to the business cases in this area are huge.
Without an electric charge point, your vans may well have to recharge on the public network. This can cost as much as 35p/kWh and will increase your fuel costs significantly.
The lease cost of the vehicle is currently extremely high as limited discounts are being offered on a high demand product. Volume commitments and key partner relationships will bring this cost down within a 12-month period. Working with key partners within this area are crucial to see a further 20% improvement in current rental rates.
In our belief the target Lease rate needs to be equivalent to Sub £100 a week plus VAT to ensure you have a sensible chance of saving money through the adoption of Electric vehicles. Once this has been achieved the business case becomes a real game changer and this coupled with the environmental benefits, most business it will struggle not to make the switch to electric.
With all of this taken into account, it must be remembered that is not as clear cut as the electric van manufacturers and suppliers would like you to think.
If you believe the electric vehicle ‘hype’ around cost saving without due diligence, you may well find yourself with increased operating costs which are too high for your company to sustain.
