Promoted | Why going electric makes sense for company car drivers
Choosing an electric car over a petrol or diesel can help you to cut even more of the costs associated with this popular employee benefit...
A company car is undoubtedly a big perk of the job, but it also comes with a wealth of expenses that soon add up. That’s why choosing an electric car – such as the Nissan LEAF 40 kWh N-Connecta – as your next company car can make it an even more worthwhile employee benefit.
With a range of tax benefits, exemptions and government grants that reduce the initial purchase price of electric cars and charging equipment – allied to significantly reduced running costs over petrol or diesel equivalents – the financial benefits of going electric with your company car soon add up. Even better: there’s no compromise in the way you drive or the way you do your job.
To find out more about the benefits of using the Nissan LEAF as a company car, go to nissan.co.uk/leaf
Big cuts in annual driving expenses
To give a quick comparison of the benefits of choosing an electric company car, we’ve compared the costs of running a Nissan LEAF 40 kWh N-Connecta to a typical UK best-selling family hatchback with a 1.5-litre turbo petrol engine (with automatic transmission) that is focused on improving fuel economy and cutting CO2 emissions[1].
The first saving of going electric is benefit-in-kind (BIK) tax. Determined by a car’s purchase price and CO2 emissions, BIK is one of the big company car expenses. The typical petrol hatchback (emitting as low as 133g/km of CO2) attracts a 29%-31% BIK rate per year from April 2020 to March 2023. This would cost from £3200 to £3400 per year in BIK over the first three years for a company car driver in the 40% tax bracket.
But, with zero tailpipe emissions, the all-electric Nissan LEAF boasts a 0% BIK rate for the 2020/21 tax year, just 1% BIK rate in 2021/22 (equating to £124) and a 2% BIK rate (£249) in 2022/23[2]. That’s a big instant saving.
Then there’s vehicle excise duty (VED) or ‘road tax’. The Nissan LEAF is VED exempt – saving £215 in the first year over the typical petrol hatchback, and £150 in subsequent years. With fewer moving parts in an electric car, annual servicing and maintenance costs are up to 40% cheaper as well – with a typical fixed price minor service for the Nissan LEAF costing £159, compared with £229 for a Nissan petrol model and £269 for a Nissan diesel car at participating dealers[3].
Lower day-to-day running costs
Finally, there’s charging costs. The UK government’s Electric Vehicle Homecharge Scheme (EVHS) covers up to 75% of the price of a home charger installation up to a maximum of £350 (inc. VAT)[4]. That means a 7kW home charger from Pod Point – which is 3x faster than a domestic 3-pin plug – costs as little as £529 to fit.
Even if you were charging at home during the day (on more expensive standard electric rates), you can top up a Nissan LEAF 40 kWh N-Connecta to 100% (or up to 168 miles of range (WLTP)[5] for around £6.60 – or just 3.9p per mile[6]. The average petrol hatchback would cost £18.29 (or 10.9p per mile)[7] in petrol to do the same distance.
If, like most electric car owners, you charge your electric car overnight – when rates are cheaper – the savings can be even greater. Over the course of a year (or 10,000 miles), that means an all-electric car like the Nissan LEAF can be around £600 cheaper[8] to run than its petrol rival.
All the benefits of electric; no compromise
Those cost savings soon add up. Over three years, a Nissan LEAF can be just under £12,000[9] cheaper to run as a company car than popular petrol family hatchbacks. And that’s before you consider the wealth of congestion, cleaner air and ultra-low emissions zone (ULEZ) charges being introduced by cities – which can cost as much as £27.50 per day. Charges from which the Nissan LEAF is fully exempt.
Don’t think you’ll compromise on usability or performance when choosing an all-electric model as a company car. The Nissan LEAF is every bit a practical family hatchback, with room for five adults and up to 435 litres of rear luggage space.
With Nissan LEAF 40 kWh models boasting a range of up to 168 miles (WLTP)[5] and fast on-the-go charging – with rapid 50kW CHAdeMO chargers boosting the battery from 20% to 80% in as little as 60 minutes[10] – the LEAF takes work journeys in its stride, while long family holiday trips are also handled with ease.
Plus, with 320Nm of instant electric torque that delivers impressively confident acceleration, the Nissan LEAF is more punchy to drive than a typical family hatchback focused on pure economy – while an abundance of driver aids and infotainment technology makes for fun and safer motoring. So, with all the benefits and pretty much zero compromise, why wouldn’t you go electric with your next company car?
To find out more about the benefits of using the Nissan LEAF as a company car, go to nissan.co.uk/leaf
Terms & conditions
[1] All comparison calculations based on Nissan LEAF 40 kWh N-Connecta model and typical UK best-selling hatchback with 1.5-litre turbo petrol engine (automatic transmission), delivering fuel economy of 48.2mpg (combined) and CO2 emissions as low as 133g/km, owned by a company car driver in the 40% tax bracket.
[2] Please seek independent tax advice.
[3] For more information visit https://www.nissan.co.uk/ownership/nissan-services.html
[4] Eligibility criteria apply. Please refer to the following site for details: https://www.gov.uk/government/collections/government-grants-for-low-emission-vehicles
[5] WLTP figures shown are for comparability purposes. Actual real-world driving results may vary depending on factors such as the starting charge of the battery, accessories fitted after registration, weather conditions, driving styles and vehicle load.
[6] Cost to charge to up to 168-mile range based on average daytime electric rates of 16.5p per kWh (Drive Zero, August 2020). Charging time = 5.7 hours for 40kWh at 16.5p/kWh. Charge cost = £6.60 (3.9p per mile)
[7] Cost for petrol for 168 miles, based on average petrol price of £1.15 (AA, August 2020) and the car delivering a fuel economy of 48.2mpg (combined) 48.2mpg = 3.49 gallons = 15.9 litres @ £1.15 = £18.29 (10.9p per mile).
[8] Annual saving calculated as 48.2mpg over 10,000 miles = 943.13 litres at £1.15 = £1,085pa. 10,000 miles/168-mile range = 60 charges X £6.60 = £396pa.
[9] Total savings on Nissan LEAF 40kWh N-Connecta vs typical UK best-selling hatchback with 1.5-litre turbo petrol engine (automatic transmission) = £515 road tax + £9,623 BIK + £2,067 fuel - £529 charger installation + £240 servicing = £11,916
[10] Indicated rapid charging time may vary depending on factors including charging conditions, battery and ambient temperature at point of use and if the battery safeguarding technology is activated. Visit nissan.co.uk to find out more.
