Electric Van Hire Purchase Options

The electric van hire purchase market is rapidly evolving, offering businesses a path to greener operations and potential cost savings. As environmental concerns grow and regulations tighten, companies are increasingly looking to electrify their fleets. Electric used van hire purchase schemes provide an accessible way for businesses to make this transition, allowing them to spread the cost of acquiring cutting-edge electric vehicles while reaping the benefits of reduced emissions and lower running costs.

From the Nissan e-NV200 to the Maxus eDeliver 9, a wide range of electric vans for sale is now available to suit various business needs. This article explores the advantages of electric van hire purchase, highlights top models like the Citroen e-Berlingo and Vauxhall e-Vivaro, and delves into crucial aspects such as range, charging infrastructure, and financial considerations. It also provides guidance on transitioning a fleet to electric vans, helping businesses drive towards a more sustainable future.

Electric Van Hire Purchase

Electric van hire purchase offers numerous advantages for businesses looking to modernize their fleets and reduce their environmental impact. This financing option allows companies to spread the cost of acquiring cutting-edge electric vehicles while reaping significant benefits.

Eco-Friendly Financing Solutions

One of the most compelling reasons to consider electric van hire purchase is the potential for substantial cost savings. The day-to-day running costs of electric vans are significantly lower compared to their petrol or diesel counterparts. For instance, the average cost of charging an eDeliver 3 van is approximately £8.82 (10p per mile), whereas filling up a diesel van costs around £21.00 for 3 gallons. This difference in fuel costs can lead to considerable savings over time, especially for businesses with large fleets.

Moreover, electric vans have fewer moving parts than traditional internal combustion engine vehicles, resulting in reduced wear and tear. This translates to lower maintenance costs, as businesses can save on routine tasks such as oil changes, spark plug replacements, and air filter changes. The simplified maintenance requirements contribute to a lower total cost of ownership for electric vans over their lifespan.

Another financial advantage comes in the form of tax benefits. Electric vans have a 0% Benefit-in-Kind (BIK) rate, which means company van drivers pay significantly less in taxes compared to those using traditional vans. Additionally, businesses can deduct the full cost of an electric van from their pre-tax profits in the first year through the First Year Allowance (FYA), leading to substantial tax savings.

Environmental Impact

Transitioning to electric vans through hire purchase schemes has a significant positive impact on the environment. As transportation is a major contributor to greenhouse gas emissions, switching to electric vehicles can dramatically reduce a company’s carbon footprint. Electric vans produce zero tailpipe emissions, helping to improve air quality in the communities where they operate.

By decreasing reliance on fossil fuels, businesses contribute to a cleaner, more sustainable transportation system. This shift not only benefits the environment but can also enhance a company’s brand image, appealing to environmentally conscious consumers and potentially opening up new business opportunities.

Electric vans are also significantly quieter than their petrol or diesel counterparts, helping to reduce noise pollution in urban areas. This can have a positive impact on the quality of life for residents and workers in busy city centers.

Government Incentives Electric Van Hire Purchase

The UK government has implemented various incentives to encourage businesses to adopt electric vans, making hire purchase an even more attractive option. The Plug-in Van Grant (PIVG) offers a discount of up to £5,000 for eligible vans, significantly reducing the initial purchase price.

Businesses can also benefit from the Workplace Charging Scheme (WCS), which provides funding for installing electric vehicle chargers on business premises. This grant covers up to 75% of the installation costs, with a maximum of £350 per socket for up to 40 charge points.

Electric vans are exempt from Vehicle Excise Duty (road tax) until 2025, offering additional savings for businesses. Furthermore, electric vans are not subject to congestion charges in certain areas, such as London’s Congestion Charge Zone, potentially leading to significant savings for businesses operating in these regions.

By taking advantage of these government incentives, businesses can offset the initial costs associated with transitioning to electric vans, making hire purchase an even more financially viable option for fleet electrification.

Top Electric Van Models for Businesses

Small Electric Vans

The Renault Kangoo E-Tech stands out as the best small electric van, offering an impressive official range of up to 186 miles between charges. Based on the award-winning Renault Kangoo, this electric version provides ample space and decent load volumes, making it an excellent choice for businesses seeking efficiency and practicality.

For those preferring a premium badge, the Mercedes eCitan presents an attractive option. Sharing many virtues with the Nissan Townstar Electric and Renault Kangoo E-Tech, it boasts a nippy 121bhp electric motor and 45kWh battery, delivering an official range of 174 miles.

The Citroën e-Berlingo has gained popularity for its competitive pricing and comprehensive features. It shares its platform with similar-sized vans from Peugeot, Toyota, and Vauxhall, offering excellent value for money in the electric van class. The e-Berlingo comes well-equipped, provides ample space, and delivers a pleasant driving experience.

The Maxus eDeliver 3 deserves mention for its bespoke design tailored for an electric powertrain. With a 50kWh battery, it promises a range of 151 miles (WLTP) and has a maximum payload of 945kg. Its lightweight construction allows it to retain more range at higher speeds compared to competitors, making it a practical choice for businesses prioritizing efficiency and affordability.

Medium Electric Vans Electric Van Hire Purchase

The Vauxhall Vivaro-e has earned recognition as the Best Zero Emission Medium Van at the 2023 Fleet News Awards. It offers a compelling combination of range and payload capacity, making it suitable for various business needs. With two battery options (50kWh and 75kWh), it provides ranges of 143 miles and 205 miles respectively. The Vivaro-e has become the UK’s best-selling electric van, thanks to its comfort, ease of driving, and rapid charging capabilities.

The Stellantis group’s medium-sized electric vans, including models from Citroën, Peugeot, Toyota, and Vauxhall, share similar specifications. These vans offer up to 205 miles of range with the 75kWh battery option and provide cargo volumes of up to 6.6 cubic meters. With payload weights reaching 1,275kg, they closely match their diesel counterparts in terms of capacity.

The Volkswagen ID Buzz Cargo lease stands out for its unique design and advanced technology. Built specifically for an electric powertrain, it offers a spacious and quiet cab, excellent visibility, and an impressive official range of 256 miles from its 77kWh battery. While its loadspace of 3.9 cubic meters and payload of 607kg are less than some competitors, its driver satisfaction and range make it an exceptional choice for businesses seeking a distinctive and capable electric van.

Large Electric Vans

The Fiat e-Ducato leads the pack in the large electric van segment, offering an extensive range of 28 body styles. This versatility makes it suitable for various business needs, from panel vans to chassis cabs and minibusses. With two battery options (47kWh and 79kWh), the e-Ducato provides ranges of 88-108 miles and 147-175 miles respectively. Its impressive payload capacity of up to 1,885kg and loadspace volumes ranging from 10 to 17 cubic meters make it a versatile choice for businesses requiring substantial carrying capacity.

The Mercedes eSprinter has recently received a significant update, now featuring a 113kWh battery that allows for a maximum range of 248 miles. This improvement makes it a strong contender in the large electric van market, offering up to 11 cubic meters of cargo volume.

For businesses focused on last-mile deliveries, the Renault Master E-Tech provides a practical solution. While its official range is 115 miles, real-world usage typically yields 75 miles, or as low as 50 miles in cold weather. However, this range is often sufficient for daily urban delivery routes, making it a viable option for many businesses operating in city environments.

Understanding Electric Van Range and Charging

Electric van range is a crucial factor for businesses considering the transition to electric vehicles. The range refers to the distance an electric van can travel on a single charge. This distance varies between models and is influenced by several factors.

Typical Ranges Electric Van Hire Purchase

The average range for electric vans typically falls between 150-200 miles on a single charge. However, this can vary significantly depending on the make and model of the van. Battery capacity plays a key role in determining range, with capacities ranging from 35kWh to 88.5kWh. Generally, the higher the battery capacity, the longer the driving distance per full charge.

It’s important to note that the stated range may differ from real-world performance. Manufacturers calculate range using the Worldwide Harmonized Light Vehicle Test Procedure (WLTP), which aims to provide more accurate estimates by considering various driving conditions. However, actual range can be affected by factors such as:

1. Cargo weight
2. Weather conditions
3. Driving style
4. Use of air conditioning
5. Tire quality

To maximize range, businesses can consider options such as choosing a model with a larger battery, reducing cargo weight, avoiding extreme weather conditions, adopting smooth driving habits, limiting air conditioning use, and maintaining tires properly.

Charging Options

Electric van charging can be done in various settings to suit different business needs. The main options include:

1. Workplace Charging: Businesses can install charging stations at their premises, allowing employees to charge their electric vans while at work. This option provides convenience and can encourage the adoption of electric vehicles among staff.
2. Public Charging Network: As of May 2023, there are 42,566 EV charging points available across the UK. This growing infrastructure helps address range anxiety and makes long-distance travel more feasible.
3. Home Charging: For businesses that allow employees to take vans home, home charging can be a convenient option.

Planning for Charging

When planning for electric van charging, businesses should consider several factors:

1. Charging Speed: Different chargers offer varying charging speeds. Fast chargers can significantly reduce charging time but may be more expensive to install.
2. Number of Chargers: The number of chargers needed will depend on the size of the electric van fleet and usage patterns.
3. Installation Costs: These can vary depending on factors such as the power required, installation method, and distance to the connection point.
4. Grid Capacity: It’s often less expensive to install charging points without upgrading the site’s power supply. Assessing the current grid capacity is crucial.
5. Operational Costs: These include electricity costs (typically ranging from 10p-15p per kWh) and maintenance expenses.
6. Business Model: Companies can choose from various approaches, including offering free charging as a loss leader, implementing cost recovery fees, or even generating profit from charging.
7. Flexibility and Scalability: Given the rapid evolution of EV technology, it’s important to work with a charging provider who can offer tailored solutions and adapt to changing needs.

By carefully considering these factors, businesses can develop an effective charging strategy that supports their transition to electric vans while managing costs and operational efficiency.

Financial Considerations of Electric Van Hire Purchase

When considering electric van hire purchase, businesses need to evaluate various financial aspects to make an informed decision. While the initial costs may seem higher, the long-term benefits can make electric vans a cost-effective choice for many companies.

Initial Costs

The upfront cost of an electric van is typically higher than its petrol or diesel counterparts. However, this initial investment should be viewed in the context of total ownership costs. For small electric vans, prices start from around £20,000, with larger models costing more.

To offset these higher initial costs, the UK government offers incentives:

1. Plug-in Van and Truck Grant: Available until March 31, 2025, this grant provides a discount on the purchase price of eligible electric vans.
2. EV Infrastructure Grant: Small-to-medium-sized businesses can receive up to £15,000 to install charging points on their premises. This covers up to 75% of the installation costs, with £350 available per charge point socket and £500 per parking space enabled with supporting infrastructure.

Businesses can also explore various financing options, such as leasing or hire purchase agreements, to spread the cost over time and make electric vans more affordable.

Running Costs

One of the most significant advantages of electric vans is their lower running costs compared to traditional vehicles:

1. Fuel Costs: Electricity is considerably cheaper than petrol or diesel. For example, charging an electric van with a 45 kWh battery costs around £16 for a full charge, compared to £89.64 for a full tank of diesel for a comparable van.
2. Maintenance: Electric vans have fewer moving parts, resulting in reduced service expenses. They eliminate costs associated with oil changes, oil filter replacements, and exhaust system repairs.
3. Charging Infrastructure: Businesses should factor in the cost of installing charging stations at their premises. While this represents an initial investment, it can lead to long-term savings by reducing reliance on public charging stations.
4. Battery Replacement: The battery is a crucial and costly component. However, many manufacturers, like Maxus, offer extended warranties (e.g., eight years) on high-voltage batteries, mitigating this potential expense.
5. Insurance: Costs can vary based on factors such as model, battery replacement coverage, and repair availability. While they may be comparable to or slightly higher than for internal combustion engine vehicles, the savings on running costs can offset any difference.

Tax Benefits

Electric vans offer several tax advantages that can significantly reduce the overall cost of ownership:

1. Vehicle Excise Duty (Road Tax): Electric vans are currently exempt from road tax, although this exemption is set to expire in 2025.
2. Benefit-in-Kind (BIK) Tax: Electric vans have a 0% BIK rate, resulting in substantial tax savings for company van drivers compared to those using traditional vans.
3. Capital Allowances: Businesses can deduct the full cost of a zero-emission electric van from their pre-tax profits in the first year through the First Year Allowance (FYA), leading to significant tax savings.
4. Corporation Tax Relief: Companies can claim corporation tax relief on the costs of maintaining and insuring the electric van.
5. Congestion Charges: Electric vans are currently exempt from the London Congestion Charge, although this exemption is set to expire in December 2025.

By carefully considering these financial aspects, businesses can make an informed decision about transitioning to electric vans. While the initial investment may be higher, the combination of lower running costs, government incentives, and tax benefits can make electric van hire purchase for the self employed or these days an electric van lease a financially attractive option for many companies in the long run.

Transitioning Your Fleet to Electric Vans

Transitioning to electric vans can significantly reduce CO2 emissions and save businesses money. A study by Northgate Vehicle Hire revealed that if all UK commercial vans were electric, it could cut CO2 emissions by 3.4 million tons per year. Moreover, businesses could save an average of £1,125 per van annually by switching to electric vehicles.

Assessing Your Needs

To begin the transition, it’s crucial to review your fleet for vehicles with suitable electric alternatives. The most suitable candidates for electrification typically have the following characteristics:

1. Low daily mileage: Electric vans can reach driving distances of 75+ miles on a single charge, with 120 miles or less being ideal for many models.
2. Smaller payloads: Lighter loads are more likely to have an electric alternative with suitable weight capacity and driving range.
3. Urban routes: Built-up areas or routes along main roads are more likely to have accessible charging infrastructure.
4. Charging time: Consider how the vehicle is used and whether it can be charged between jobs.

Understanding your fleet’s movements through telematics and other data can help determine which vehicles to transition and when. It’s also essential to assess your current infrastructure, working closely with property and estates departments to identify potential limitations or opportunities.

Phased Implementation

Most businesses find that taking a phased approach to electric vehicle adoption is the most practical option. This allows for a smoother transition and helps address any challenges that may arise. Consider the following steps:

1. Run a pilot program: Trial one or two electric vehicles to get a sense of how they fit into your operations. This can help identify any operational issues early on.
2. Develop a charging strategy: Decide how you will charge your electric vehicles. Options include using public charge points or installing charging infrastructure at your business sites. If installing your own infrastructure, choose the appropriate charging technology and ensure it can be supported by the power grid or renewable alternatives.
3. Update fleet policies: Develop policies specific to electric vehicles, including fuel reimbursement and Benefit in Kind (BIK) tax considerations. The HMRC has provided an Advisory Electric Rate (AER) of 9p for electric vehicles.
4. Plan for the future: Consider your requirements not just in the immediate future but also over the next three, five, and ten years. This “dig once” principle can help minimize disruption and costs associated with multiple installations.

Driver Training

Engaging with drivers is crucial for a smooth transition to electric vans. While EVs are becoming increasingly common, they may still be unfamiliar to many people. To ensure a successful transition:

1. Provide clear communication: Explain your EV plans, including the financial, carbon, and air quality benefits, as well as charging infrastructure plans.
2. Organize test drives: Offer opportunities for drivers to experience electric vans firsthand, helping to bust myths and build confidence.
3. Offer familiarization courses: Provide training to help drivers become more confident in driving and charging EVs. This can address changes in driving technique associated with new features such as regenerative braking and the correct use of charging technology.
4. Highlight benefits: Emphasize the smooth acceleration, quiet operation, and relaxing driving experience of electric vans, especially in urban environments.

By following these steps and engaging with your drivers, you can ensure a smoother transition to electric vans, reducing your fleet’s environmental impact while potentially saving on operational costs.

Conclusion Electric Van Hire Purchase

Electric van hire purchase offers businesses a compelling path to greener operations and potential cost savings. The transition to electric vans has an impact on both environmental sustainability and financial efficiency, with lower running costs and tax benefits offsetting higher initial investments. The growing range of electric van models, from small to large, caters to diverse business needs, while advancements in battery technology and charging infrastructure make electric vans increasingly practical for daily operations.

To make the switch to electric vans, businesses need to carefully assess their fleet requirements and develop a well-thought-out implementation strategy. This involves evaluating vehicle usage patterns, setting up charging solutions, and providing proper training for drivers. By taking a phased approach and considering long-term needs, companies can smoothly transition their fleets to electric vans, leading to reduced carbon emissions and potentially significant cost savings in the long run.

FAQs Electric Van Hire Purchase

1. Can a business finance a van purchase? Yes, a business can finance the purchase of a van either through a business loan, which allows for the van to be paid off over time, or through leasing. Leasing involves making regular monthly payments over a set period, with an option to buy the van at the end of the lease term.
2. Are there any grants available for electric vans? Electric vans are eligible for the OZEV Plug-In Van Grant if they emit 50g/km or less and can travel at least 60 miles on full electric power. However, eligibility for this grant is subject to specific terms and conditions and may change or be withdrawn without notice.
3. Is it possible for a business to lease a van to itself? Yes, a business can lease a van to itself. This arrangement should clearly outline the monthly lease payments, payment due dates, lease term, insurance requirements, and provisions for missed payments. The rental fee should be competitive with local rates for similar assets.
4. Can a business use hire purchase for acquiring a car? Absolutely, hire purchase is a traditional financing option that allows a business to use a vehicle while paying for it over a set period. This method facilitates easier budgeting by spreading the cost over time.