Government policies in relation to fuel-efficient vehicles and air pollution are designed to encourage businesses to adopt alternative fuel vehicles (AFVs).
This leaves fleet managers with difficult decisions. Which vehicles are best suited to your business in terms of cost and performance?
AFVs are more expensive to purchase but much more cost-effective to run. In addition, increased Vehicle Excise Duty (VED), the tightening of environmental laws, and year-on-year increases on the CO2 emissions levy only serves to add to a company’s financial burdens.
What’s Driving The Adoption of AFVs?
Business Car Leasing v Purchasing
Fleet cars are becoming increasingly popular for businesses. Leasing a company car is less expensive than purchasing a fleet outright and offers more convenience.
With the burgeoning costs of AFVs, businesses that do not have the capital to invest in a fleet of cars will find solutions with our company car leasing plans.
Advancements in diesel technology means modern engines are more durable, cleaner and fuel efficient than ever before. However, vehicles are more expensive to purchase. Although fuel costs are higher than electric-powered vehicles, diesel engines are more reliable over long distances, can pull heavy loads and require fewer fuel stops.
Businesses that require vehicles for long distance travel and often carry or tow heavy loads may want to consider vehicles with diesel engines. Diesel engines are heavier on the budget over short distances but get the job done.
Automotive engineers have improved the engine technology of petrol cars to make them more economical. They are still the most expensive cars to run, but are not as expensive to purchase. They also carry a lower tax burden than diesel cars.
Petrol cars are an option for businesses that do not want the additional upfront expense of alternative fuel cars. However, the running costs are significantly higher so are best suited to firms that only need a vehicle for occasional use.
Hybrid cars have the distinction of being environmentally-friendly, cost-friendly and able to last the distance. The primary fuel source is electricity, but once the power runs out, the engine switches to a traditional fuel source.
Overall, Hybrid vehicles typically use 30% less fuel than petrol cars over short distances. Businesses that only use cars in the city will benefit from low-cost fuel advantages and less maintenance costs.
Plugin Hybrid (PHEVs)
PHEVs are a true game-changer. Similar to hybrid vehicles, they are part electric and part traditional petrol / diesel fueled but are capable of reclaiming energy that would otherwise be wasted. Although economically efficient, drivers need to remember to charge the car at home or place of business as often as possible.
Which businesses are Plugin Hybrid cars best suited?
PHEVs use 40-60% less fuel consumption than petrol engines. Although they are most economical for city use, the ability to charge the battery makes PHEVs more reliable and cost-effective over longer distances than standard hybrids.
EVs operate on battery power only. Whilst this improves energy efficiency and significantly cuts running costs, battery-powered cars are limited to shorter distances and require charging more often.
EVs are ideal for businesses that provide company cars as a benefit-in-kind, visit clients regularly or deliver goods in local areas. They are also congestion zone charge free so reduce costs in central London and future low emission zone cities.
The Future of Leasing Fleet Cars
The business car leasing sector is coming to a crossroads. Now that combustion engines are being phased out alternative fuel cars have to be part of the conversation.