The electric vehicle sector has enjoyed huge growth figures of late, with the most recent stats showing that battery-powered cars have seen a staggering rise in sales of more than 168%1 for the year to the end of October versus the same period in 2019.
This is all the more notable given the struggles that traditional fuels are facing and a bucking of the overall trend that sees the market share for pure electric vehicles up to 6.6% in October1, and rapidly closing in on diesel, the traditional fleet favourite.
This surge in interest and demand means that more people are experiencing the benefits of EVs – financial and otherwise. These benefits are nothing new to Nissan owners, as the company has been at the forefront of the EV market for almost a decade thanks to the 100% electric LEAF hatchback and e-NV200 Combi and Van.
The pressures of 2020 mean that the spotlight has been turned onto corporate and personal finances.
The financial benefits of running an electric vehicle stretch far beyond the simple process of charging it up and running it day to day. There are a wide range of tax savings in addition to the headline-grabbing and driver-friendly low Benefit-in-Kind rates.
Electric cars like the UK-built Nissan LEAF and the e-NV200 qualify for a 100% Writing Down Allowance, or Corporation tax, in the first year of ownership until April 2021, which means that fleet bosses will be able to offset the entirety of their value in year one, saving tax contributions and administration.2 By comparison, companies still won’t have offset the value of a car emitting 100g/km more than 10 years into its life, resulting in additional paperwork and an ongoing tax headache. Given the life cycle of corporate cars, many of these vehicles will be resold without ever having made much of a dent on the corporate tax relief.
For those leasing, tax relief is available for the full lease cost, while 50% of the VAT can be recovered, too.
By qualifying for lower BIK bills, electric cars are also eligible for lower National Insurance contributions. These are charged at a rate of 13.8% of the value of the BIK. Given that EVs sit in the 0% bracket for the 2020/21 tax year, this means that employers don’t have to pay anything at all. The contributions will remain small in coming years, too, with BIK only set to rise to 1% in 2021/22 and 2% in 2022/23, compared to around 30% for even the most regular petrol or diesel cars3.
While charging costs might differ from location to location, there are other daily savings that come about as a result of driving a LEAF or an e-NV200. The HMRC’s Advisory Fuel Rates for electric vehicles are just four pence per mile 4 which is significantly less than the highest petrol rate of 17ppm4 for cars over 2000cc, which adds up to a saving of £676 a year in fuel claims for a company’s driver doing just one 100-mile round trip a week in their company car.
Electric vehicles also don’t have to pay to enter the charging zones in London – the Congestion Charge, T Charge and ULEZ charge – while other cities will also offer exemption for their respective charging zones. Electric cars won’t have to pay to go into the Zero Emission Zone in Oxford that starts in August 2021, for example.
The 100% electric LEAF was first launched in 2010, which means that Nissan has more than a decade of experience to bring to the electric vehicle market of 2021 and beyond.
The benefits of electric car ownership aren’t all centred around the figures.
Pressing the accelerator in an electric vehicle like the LEAF brings a swift and smooth response, which means that it’s a fantastic companion around town.
But the 62kWh LEAF e+ isn’t just swift in urban settings, with a 0-62mph time of just under seven seconds – a level of performance that puts it on a par with some performance-oriented hatchbacks.
This knowledge has been garnered through ongoing relationships with more than 500,000 customers that have bought, driven and lived with their Nissan electric vehicles.
In 2011, the LEAF was named the first ever EV to win the coveted European Car of the Year title, is the world’s best-selling electric vehicle, with more than half a million units sold since 2010. Nissan’s close link to the electric-driving community means that it has been able to develop innovative technology and features, based on that real-world experience and knowledge. The e-Pedal, which allows one-footed driving, is one example.
This network of drivers has acted as a great way to spread the word about electric cars. For example, 92% of European LEAF drivers would recommend an electric car, while the majority – 74% – would buy another electric vehicle in the future, according to Nissan Europe Market Intelligence’s 2019 EV infrastructure survey.
Nissan’s experience also means it has confidence in how its vehicles perform as the years go by. The dedicated EV components are covered by a longer, five-year 60,000-mile warranty. The battery goes even further, with an eight-year 100,000-mile warranty, which also protects against capacity loss below nine bars out of 12 on the LEAF’s gauge.5
All this is done in a calm and relaxed environment, with the quiet and serene driving experience unlike anything offered by a diesel or petrol car. Beyond the low levels of noise, there is also a wide range of features that will combine to make drivers’ days less stressful.
These include the ProPILOT Park system6 that helps take the hassle out of getting into a tight spot, Intelligent Around View Monitor7 that gives a perfect view all around the car, and the e-Pedal which takes care of the majority of the braking and allows the car to be driven using one foot alone.
1 – Official SMMT New Car Sales Figures https://www.smmt.co.uk/vehicle-data/car-registrations/
2 – Nissan Motor (GB) Ltd does not offer tax advice and recommends that all drivers consult their own accountant with regard to their particular tax situation.
3 – Finance Bill 2019-20 https://www.gov.uk/government/publications/taxable-benefits-and-rules-for-measuring-carbon-dioxide-emissions
4 – Government Advisory Fuel Rates https://www.gov.uk/guidance/advisory-fuel-rates
5 – 5 years / 60,000 miles (whichever comes sooner) manufacturer warranty on EV components. 8 year / 100,000 miles (whichever comes sooner) battery warranty. Certain parts and labour only. For full terms and conditions speak to your local Nissan Fleet Dealer.
6 – ProPILOT Park is optional on Tekna and e+ Tekna grade. ProPILOT is an Advanced Driver Assist technology but cannot prevent collisions. ProPILOT is intended for “Eyes on/Hands on” for highways only (road separated by barriers). It is the driver’s responsibility to stay alert, drive safely and be able to take control of the vehicle at any time.
7 – Intelligent Around View Monitor is standard on N-Connecta grade and above. You should not reply solely on driver convenience features. Some features may not work in all conditions and circumstances. Speed and other limitations apply. For terms and conditions relating to Nissan technologies please visit https://www.nissan.co.uk/techterms