Electric car increasingly a popular choice for SMEs

3rd April 2019 | Commercial Energy

Arriving today at the NEC for the Internet Retailing Expo, I was greeted by 16,500 car park spaces spread across acres of ground. Parking at the NEC is a joy … but not if you’ve driven up in an electric car and want to get back home again. Many SMEs are increasingly reaping the rewards from a switch from inefficient petrol and diesel cars to electric vehicles (EV’s), according to Prism Solutions co-founder and CEO Richard Alexander. It makes a lot of sense on so many fronts, not just because you want your business to have environmentally friendly credentials but also from an ongoing cost perspective once the initial investment has been made.

“At only 2p per mile for an electric vehicle, compared to 10-12p for their petrol or diesel counterparts, the business case is hard to ignore.” Richard Alexander, co-founder and CEO, Prism Solutions.

Electric car

With over 45 models from BMY i3, to Citroen CZero, Ford Focus Electric and Hyundai IONIQ Electric on the market to choose from, the number of SME’s acquiring electric cars is increasing rapidly. According to the Society of Motor Manufacturers and Traders, there was a 21% increase in the number of registrations for electric vehicles in 2018 in the UK. On the roads right now, there are approximately 155,000 EV’s.

Prism have purchased five VW Golf electric vehicle for its fleet both as a company benefit in kind and for use by on the road salespeople. Because electric cars are made of far fewer moving mechanical parts, they have lower service, maintenance and repair costs – as much as 70 per cent less than petrol or diesel-powered alternatives.

There is also a long list of tax benefits and incentives that are available to both drivers and businesses. This includes exemption from London’s Congestion and T-Charges, lower benefit-in-kind tax rates for company cars, Vehicle Excise Duty (VED) on 100 per cent electric cars under £40,000, as well as capital allowances and salary sacrifice regimes.

More information available on the website below