Can an electric van save me money?

by Jul 9, 2021Electric Vehicles

I recently wrote about the benefits an electric car could have. I discovered that there are significant tax and running cost savings. Electric vehicles are usually seen as a bit niche, limited in range and too expensive. But now we are all considering the environment, prices are coming down, and the charging network is growing, plus there are some very good tax incentives!

Main considerations when buying an electric vehicle is the range and price. Most vans with decent load-carrying ability, have a range of around 82 miles on a full charge and can carry up to 4,250kg.  A van on average covers no more than 40 to 60 miles a day. So this range would be more than sufficient. Another important point to consider is owning a driveway, or having somewhere close you can charge it from. Some lampposts in Brighton are being converted to charging points, although a note of caution here, my charger had some faults and due to that my home connection to the network had to be updated, causing the road to be dug up.

Plus, do not forget to use overnight electric rates, as they are usually one third the price of daytime rates. This means a full charge will cost around £7. A diesel van would cost around 16p per mile in fuel, whereas in electric, the cost would be around half at 7.5p.

So, let’s look at the tax savings and grants;

The total Van cost for a Renault Kangoo ZE, with an estimated range of 51-161 miles, costs around £30,000.  You can receive £8,000 grant from the government for buying electric vehicles. Currently you can offset the cost against your business profits, saving around £4,400 in tax. That’s brings the cost of the vehicle cost £22,000.

Also please be aware that there is currently no benefit in kind charge, even for personal use of the Van but a diesel or Hybrid Van would cost you up to 60% benefit in kind.

In addition, there is also no road tax to pay or London Congestion Charge, but this will change as they become more popular. The vehicle excise duty or road tax is currently zero as opposed to over £200 per year for a ICE vehicles.

Finally, the charge point is subsidized by the government and I got a £600 home unit for £300 installed despite teething issues.

In summary it is a judgement call that you need to make to save on fuel costs and reduce your impact on the environment.

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