Electric vehicles offer drivers a range of financial, performance and environmental benefits when compared with internal combustion engine vehicles.

Cheaper to run

Compared to petrol or diesel, electricity is cheap. On a cost per mile basis this means a pure electric car could cost a third (or less) of what a traditional petrol or diesel car might cost. Plug-in hybrids efficiently combine an electric motor with a petrol or diesel engine, meaning they too can be considerably cheaper to run. The cost savings will be greatest when owners charge at home and have access to an off-peak overnight electricity tariff.

Cheaper to maintain

A petrol or diesel engine is complex, requiring many additional components to operate correctly – exhaust systems, starter motors, fuel injection systems, oil, radiators, gears.  Pure electric cars, on the other hand, have just three main components – the on-board charger, inverter and motor – and fewer moving parts than cars with an internal combustion engine. This means there are less things requiring maintenance and servicing is simpler. All of which could significantly save money.

Plug-in Hybrid Electric Vehicles (PHEVs) can also be cheaper to maintain than ‘traditional’ petrol or diesel-powered alternatives. Whilst these have a petrol engine that needs regular servicing, the electrical motor requires little maintenance due to far fewer moving parts, which leads to less wear and tear of the petrol engine component.

Benefit in Kind (BiK) Tax

At present, company car drivers can make significant savings by choosing a low or zero emissions plug-in vehicle over an equivalent petrol or diesel vehicle.  The BiK tax rate is set by HM Treasury and is set to undergo significant changes from April 2020 when savings on pure battery and efficient plug-in hybrid electric vehicles will increase dramatically.

From April 6th 2020 when the new lower rates become effective all BEVs will pay no company car tax in 2020-21, just 1% in 2021-22 and 2% in 2022-23.

Company car tax for cars registered before April 6 2020

Company car tax for cars registered after April 6 2020

Zero Road Tax/Vehicle Excise Duty (VED)

Pure EVs costing no more than £40,000 have a zero rate of Vehicle Excise Duty.

Exempt from London Congestion Charge

Plug-in cars emitting 75g/km CO₂ or less are eligible for a 100% discount from the London Congestion Charge. Once registered with Transport for London, you can travel in and out of London for free as all Electric Vehicles are exempt from the London Congestion Charge.

A regular user of this zone could be saving over £2,000 a year.

 

Lower or Zero Clean Air Zone and Ultra Low Emission Zone Charges

The lower or zero emissions of plug-in vehicles means that they will attract lower charges or be exempt from charges within the Clean Air Zones being implemented around the UK and the Ultra Low Emission Zone in London.

Free Parking

Free parking for electric vehicles is available in some towns and cities.

Performance Benefits

Contrary to the cliche, electric cars are fundamentally superior to combustion vehicles in terms of power, torque and acceleration. On the whole they handle better too, due to their low centre of gravity with their heavy batteries mounted in the chassis.  Instant torque from zero revs make all electric cars great fun to drive.

Better for the environment

Pure electric cars have no tailpipe emissions; in fact, they don’t even have an exhaust. Plug-in hybrids have significantly lower average emissions than traditional petrol or diesel cars too. This can help improve air quality, particularly in urban areas and at the roadside where air quality can be worst.

Even when taking into account the impact of generating the electricity used (the ‘well-to-wheel’ emissions), pure electric cars can still produce substantially lower greenhouse gases than petrol or diesel cars. These emissions will be reduced further as the UK switches to more renewable and nuclear electricity generation.

Stay tuned for part 7 next week, where we will be looking at the benefits of electric vehicle fleets for businesses.

 

 

 

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