Eight out of ten business employees who currently opt out of a company car scheme are ‘likely’ or ‘very likely’ to move back to company cars – many of which will be electric, a survey by DriveElectric has found.
The return to company cars rather than employees taking car allowances is being driven by several factors, such as the imminent change to Benefit in Kind company car tax. There will be zero company car tax on battery electric cars from April 2020, which means that employees could save thousands of pounds each year by switching to a pure EV.
Other factors include EVs having lower whole-life costs, the growing number of proposed Clean Air Zones, and motorists preferring the driving experience of EVs.
Commenting on the link between the return of the company car and achieving the EV targets set by the government, DriveElectric’s MD Mike Potter explained: “As long as incentives remain, the government’s target of all new car sales to be electric by 2035 – or 2032 – is achievable. In addition, private buyers will benefit from an increased supply of two to four year-old used electric cars, spreading the benefit of this investment.
“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.”
5th of March 2020