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Lease Team

Electric van market charges up



The number of electric vans on the road has hit a record high, rising to 3,880 at the end of 2017, up 30% from 2,990 in 2016, according to new research from online business supermarket Funding Options.

 Figures show the total number of electric vans in use has increased almost fivefold in under a decade, up 460% from just 685 in 2008.

 Funding Options says one reason for the growing popularity of electric vans is that they can be a useful tool in establishing businesses’ “green” credentials. This can help businesses, especially those using delivery vans, win custom as customers are increasingly likely to choose contractors who are seen to be more environmentally responsible.

 From a financial point of view, businesses are starting to favour modern electric vans as they are cheaper to run than older diesel alternatives. That’s not solely due to avoiding taxes on liquid fuels; electric vans also pay zero road tax and are exempt from the London congestion charge.

 Funding Options adds that the rising popularity of electric vehicles can be in part attributed to the availability of government grants. Seven different electric vans are currently eligible for a government grant, which pays for 20pct of the purchase price of the vehicle, up to a maximum of £8,000.

 Conrad Ford, Founder of Funding Options, says, “Cheap-to-run, eco-friendly electric vehicles have now become a serious option for many businesses. Electric fleets are increasingly seen as a worthwhile investment, especially as the infrastructure around charging points improves, particularly in urban areas and motorway service stations.”

“Businesses putting up with old models because they are worried about the lease and hire costs of new vehicles should be aware of the finance options available to them.”

An extended look into this subject makes the cover story of the May issue of BrokerWorld, out next week.

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