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Electrical Vehicle Whole Life Cost


With the rise in demand for electric vehicle options for company cars and fleet, we thought it would be beneficial to provide a comparison to help you make the decision. Generally, the high purchase price of electric vehicles has been seen as a barrier, but we’re here to dispel that obstacle.


The government’s road to zero, changes to company car tax, and the implementation of the Clean Air Zone (CAZ) has encouraged many fleet operators, employers and employees to choose low-CO2.


Are you considering your first electric car or van and wondering whether now's the right time to make the switch?


Firstly, let’s take a look at the varying options of electric vehicles.


What is an EV?

The easiest of them all, an EV is a full electric vehicle that runs purely on battery power. You will be required to charge this up either by using your domestic supply, a public charging point or a charging point at your place of work.


What is a HEV?

The hybrid electric vehicle is where modern electrification of vehicles started. Featuring both a full-size internal combustion engine along with an electric motor and battery pack. Typically, the car will run on the battery alone at low speeds and then once an increase in speed is required, the petrol/diesel engine kicks in.


As you’d expect in a vehicle with a full-size engine, the battery isn’t large enough to take you long distances, however it would be able to make a short journey at low speed. In addition, it’s small enough that with regenerative breaking it will partly charge itself when you press the brake pedal. By sending the electric motor in reverse to act as a generator, which then charges the battery. Without being able to plug-in a full-hybrid, there will be occasions where the car has to burn fuel to charge the small battery.


What is an MHEV?

Unsurprisingly, a mild hybrid electric vehicle is just a mild version of the hybrid electric vehicle. The key difference is that unlike a full-hybrid, the mild-hybrid is unable to power a vehicle by itself for an entire journey. Though it can allow the engine to switch off at low speed, or when stationary, and the starter-generator seamlessly restarts when needed.

Most commonly, the battery is there to help reduce the workload of the combustion engine. However, in some cases the design and setup of the powertrain means that the battery is utilised to increase power and speed.


What is a PHEV?

You don’t have to be a bright spark to understand that a plug-in hybrid electric vehicle contains a battery that you plug-in to charge up. The advantage of this is that the with a larger battery comes a greater electrical range than the more conventional hybrids. Meaning you are able to travel further before the combustion engine kicks in. In fact, depending on the model and driving conditions, you could travel up to 30 miles on the battery alone which in emission terms is zero.


The innovation behind the plug-in also means that a PHEV intelligently conserves battery life by utilising their efficient combustion engines on longer journeys. Whilst switching to the electric motor in traffic or at low speeds; making a significant difference to lowering the CO2 emissions.


Below is a table that highlights the potential savings that company car drivers can make with an all-electric vehicle (Mustang Mach-E or Volkswagen ID.4) versus a PHEV and a traditional diesel vehicle.


*The manufacturer’s official electric car ranges are calculated through testing in a controlled environment set by WLTP (Worldwide Harmonized Light Vehicle Test Procedure) rules.


If you would like more information on how TCH Leasing can help you to drive down CO2 levels as part of a zero-emission goal, show how ULEVs and EVs fit into your operational requirements and business needs and provide the financial implications of moving to alternative fuels, including whole life costs, taxation, NI and other key considerations then please contact The Sales Team for a no-obligation fleet review.





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