New orders for electric cars through salary sacrifice are on the increase because of shorter lead times, a wider range of new models and growing manufacturer support. That’s the view from Andrew Leech, managing director and founder of Fleet Evolution.
The Tamworth-based salary sacrifice and fleet management specialist, which has been a pioneer of EV salary sacrifice schemes in the UK for businesses of all sizes, has seen EV orders rise by a third this autumn amongst its existing customer base, compared to the same period last year.
“EV orders are up by over 30% this autumn even if you exclude orders from new customers,” said Andrew Leech.
“This is despite the Government’s decision to extend the deadline for the ban on the sale of new petrol and diesel cars until 2035 which many feared would lead to a slowdown in EV orders as companies delayed green developments, “he added.
Instead, latest figures from the Society of Motor Manufacturers and Trader show that EV uptake continued to accelerate in October accounting for 37.6% of all new car registrations, as new car sales rose by 14% across the board, beating pre-pandemic levels.
Leech identified three major reasons behind the latest uptick in new EV orders. “First of all, we are seeing lead times coming down to much more manageable levels across the board as manufacturers not only increase the supply of EVs to the market, but also expand the range of cars available, thereby widening consumer choice.
“Allied to the better lead times and increase in supply, we are now seeing discount levels of around 8-15% due to increased competition, which is making a big difference to monthly rentals.
“At the entry level to the market this equates to a typical saving of around £50 per month, while in the middle market it can be around £100-150 per month. And, at the premium end of the market, we are seeing some rentals on selected models falling by as much as £300 per month in certain circumstances.
“Put these factors together, and link that to many companies’ desire to implement corporate sustainability policies, and it adds up to increased interest in and orders for EVs,” said Leech.
Leech said that his view of the Government’s five-year extension, while not universally held, was that it was the correct decision.
“For those drivers who can charge at home, either on the drive or in the garage, now is the perfect times to make the transition to electric because so many factors, such as increased supply, low taxation and longer ranges, are overwhelmingly positive.
“But there is still around 40% of the population who have no access to home charging and for whom the national charging infrastructure is still insufficient to meet their needs. So that extra five years will give suppliers the breathing space to extend and upgrade the charging network, making it suitable for all,” he said.
Leech added that there were still some ludicrous myths on social media surrounding electric cars – the recent fire at Luton Airport, for example, was rumoured to have been started by an EV when, in fact, it was a fire in a diesel vehicle.
“Latest research into car fires in the US shows that the highest percentage of fires per 100,000 sales actually occur in older style hybrids followed by gasoline/petrol cars while there are fewer fires amongst electric cars. EVs actually catch fire far less than news reports would have you believe.
“Our view is that there has never been a better time to make the switch to electric and salary sacrifice is undoubtedly the most cost and tax effective way of acquiring a new EV.
“Schemes like our own offer a whole array of cost saving benefits for employees of all ages, including all servicing and repair costs, road fund licence, fully comprehensive insurance, corporate discounts and no deposit,” he said.
