The number of drivers and companies adopting electric vehicles – also referred to as EVs – has been steadily increasing for the last ten years.
By the end of 2018, there were five million electric vehicles on the roads across the globe – an increase of 63% on 2017. Today there are an estimated 265,000 electric vehicles on UK roads.
ICR Leasing in Milton Keynes has been working with local businesses, helping them to move over to electric vehicles, not only to help the environment but also to save money.
“2020 will be a big year for EVs,” says Will Chapman, Business Sales and Operations Manager at ICR Leasing.
“There are approximately 27 new models of electric vehicle coming out on the market this year, and the government has recently announced that it will ban the sale of new petrol, diesel and hybrid vehicles from 2035, bringing forward the original date by five years. It has been said that this was done to help the government meet its goal of achieving net-zero emissions by 2050 as the average lifespan of a vehicle is 14 years.
“Add to that the many financial incentives out there for people who drive EVs and it is hard to ignore the pull to ‘go electric’.”
Will himself started driving an electric vehicle in October 2019 and has made significant savings on fuel costs, with them dropping from 15p a mile in his previous hybrid vehicle to 4p mile in his electric vehicle.
“Lots of companies are looking for ways to minimise their impact on the environment, from reducing plastic use to recycling,” adds Will. “Switching to electric vehicles can help businesses to meet low emission targets, reduce fuel costs and save money through financial incentives.”
These financial incentives are set to get more substantial too, with company car drivers who choose an emissions-free electric model paying no company car tax from April 2020. By comparison, Benefit In Kind (BIK) rates for diesel vehicles are set to increase. New plug-in grants are also expected to be announced in the Budget on Wednesday 11th March.
ICR Leasing is a fully self-funded leasing company rather than a broker. This means it carries out all underwriting in-house and can write bespoke leasing contracts to meet the needs of its customers. It specialises in working with start-ups, companies who are based outside of the UK but require staff to work and drive in the UK, and business owners with a weak credit rating.
The company recently worked with SalesMaster, an automotive software specialist, to provide a fleet of six Tesla electric vehicles for its sales and management team. Featuring a combination of models, including the Tesla Model S, Tesla Model 3 Standard and Tesla Model 3 Long Range, the new fleet replaced combustion engine vehicles with an average CO2 of 116k/km, which not only saved the employees money but also a large saving on National Insurance contributions for the employer.
Annette Angell at SalesMaster said: “We were looking to change the majority of our vehicles over to EVs and looked to ICR to give us guidance on the best route to take. They advised us on the cost benefits for both employee and employer and helped to identify differing models for our requirements. The whole process was simple and pain free and we are thrilled with the range of Tesla’s we now have.”
“Start-ups or businesses younger than three-years-old are often turned down for vehicle finance agreements because they don’t have a long enough trading history,” reveals Will. “As we are self-funded, we can do things differently. We look where possible, at the future of the business as well as its history and make decisions based on the contracts in place, a business plan and likelihood of success. We also look at affordability and sustainability. If everything looks in order, we can underwrite the business.”
This approach has worked well for ICR Leasing which counts some well-known brand names as clients including a watch manufacturer, airline and French patisserie.
As well as helping businesses to secure the vehicles they want and need, the flexibility means that the service offered is naturally more personal and tailored.
“ICR was registered in1935 and is still a family-run organisation that believes in working with our customers to understand their business needs and find a contract that works for them,” adds Will. “We know that working with our customers will help all parties to grow from strength to strength.”
For more information on ICR Leasing, go to www.icrleasing.co.uk