Company Car Today

Eight out of 10 business employees who do not drive a company car and take the cash allowance instead are likely to return to driving company cars – with these vehicles being electric – according to a survey by a leasing company.

According to DriveElectric, the surge in interest in company cars is down to the new Benefit-in-Kind rates that are expected to come into force from April in which EVs will not incur any company car tax, as well as other factors including EVs having lower whole-life costs, the growing number of proposed Clean Air Zones, and motorists preferring the driving experience of EVs.

DriveElectric is the appointed partner to Lloyds Banking Group and Lex Autolease for SME (small and medium enterprise) fleets of less than 20 vehicles.

Electric vehicle image

“Our survey shows that eight out of ten business employees are ‘likely’ or ‘very likely’ to move back to company cars – and these will these will be pure electric. This suggests that, as long as incentives remain, the government’s target of all new car sales to be electric by 2035 – or 2032 – is achievable, and in addition private buyers will benefit from an increased supply of 2-4 year old used electric cars, spreading the benefit of this investment,” said Mike Potter, the firm’s MD.

He added: “DriveElectric’s orders are already composed of 95% battery electric vehicles and our average fleet CO2 is 28g/km, although based on our order book, this will very soon drop to 10g/km. With a wide range of new EVs currently coming to market, supported by financial incentives, 2020 is the ideal year for business users to convert to electric – and today’s company cars become vehicles for private motorists in a few years’ time.”