Unlock the Electric Future: Why Your Business Needs Electric Van Contract Hire Now
Silverstone Leasing

Electric Van Contract Hire

Electric vans emerge as the beacon of modern, sustainable transport in an automotive evolution. Before examining the merits of Electric Van Contract Hire, it's essential to grasp the nuances of electric vans and their operation.

electric vans

Delving into Electric Vans

These are commercial vehicles powered by electric motors rather than conventional internal combustion engines. The heartbeat of these vans is the battery, dictating their range and performance.

The Mechanics Behind the Scene

  1. Electric Motor: Acting as the driving force, the electric motor converts power from the van's battery, creating the necessary motion without traditional fuels.

  2. Battery Systems: These are the repositories of electrical energy. Lithium-ion variants, recognised for their high energy retention and longevity, are predominantly employed in modern electric vans. The battery's capacity influences the van’s travel distance between charges.

  3. Regenerative Braking Systems: This ingenious system enables electric vans to recapture energy typically lost during braking, redirecting it back to the battery. This not only maximises energy usage but can also enhance the vehicle's range.

  4. Charging Infrastructure: Replenishing an electric van's energy reserves involves connecting it to an electricity source. Setting durations can differ depending on the source and the battery's specifications.

The Allure of Electric Van Contract Hire

Contract hire, in essence, offers businesses the privilege of using an electric van over a predetermined period without the strings of ownership attached. Why might this model be especially beneficial for companies?

1. Economic Advantages:

  • Operational Cost Benefits: Electric vans, by design, have a streamlined mechanical blueprint. This simplicity can lead to reduced maintenance expenses. Furthermore, when compared to petrol or diesel, electricity is often more cost-effective.

  • Governmental Support: The UK's green transport agenda has been bolstered by incentives and grants, making electric vans more financially palatable.

2. Environmental Contributions:

  • Zero Emissions: Operating devoid of pollutants, electric vans significantly reduce CO2 emissions, aligning perfectly with global environmental efforts.

  • Noise Reduction: Particularly in urban zones, the quieter operation of electric vans can contribute to a more serene environment, reducing noise pollution.

3. Corporate Brand Enhancement:

  • Eco-centric Branding: Deploying electric vans underscores a business's dedication to green practices. This can elevate a brand's esteem and market positioning in today's eco-aware consumer market.

4. Taxation Perks:

  • Favourable Tax Dynamics: Electric vans often enjoy a more benevolent Benefit in Kind (BIK) tax framework due to their eco credentials. Concurrently, businesses might be eligible to reclaim VAT on lease instalments and enjoy amplified capital allowances.

5. Future Compliance:

  • Emission Zone Readiness: With cities embracing Low Emission Zones, electric vans offer seamless navigability, free from additional costs or restrictions.

  • Depreciation Mitigation: The swift pace of EV technology evolution means that older models might face steeper depreciation curves. Leasing, mainly through Electric Van Contract Hire, safeguards against this financial concern.

6. Technological Access and Choice:

  • Latest Model Adoption: Contract hire allows businesses to transition to newer models at the lease end, ensuring continuous access to electric van advancements.

  • Diverse Fleet Options: The rising demand for electric vans has spurred manufacturers into broadening their portfolios, granting businesses a rich array of choices tailored to varied needs.

Beyond the Basics: Strategic Insights into Electric Van Contract Hire

A broader strategic perspective emerges when a business looks beyond the immediate operational benefits and the eco-centric advantages of electric vans. Electric Van Contract Hire isn’t merely a logistical choice; it can be a strategic cornerstone in a company’s long-term planning.

7. Scalability and Flexibility:

  • Adaptive Fleet Management: Businesses grow, contract, and evolve. The need for a larger fleet might be paramount during peak seasons, while quieter times may necessitate a scale-down. Electric Van Contract Hire offers the elasticity to adapt to these changing demands without cumbersome long-term commitments.

  • Technological Redundancy Prevention: The pace of advancement in electric vehicle technology is unprecedented. A cutting-edge van might become outdated in just a few years. Contract hire shields businesses from this rapid technological obsolescence, ensuring they always have access to the latest innovations without being weighed down by outdated assets.

8. Support and Expertise:

  • Professional Maintenance: Most Electric Van Contract Hire agreements have comprehensive maintenance packages. This means businesses can rely on expert care for their fleet, ensuring longevity and optimal performance and reducing the risk of unexpected breakdowns.

  • Continuous Consultation: Reputable leasing providers offer ongoing consultations and insights into best practices, ensuring businesses maximise the potential of their electric van fleet. This partnership approach often leads to better fleet management and cost efficiencies.

9. Risk Mitigation:

  • Fixed Cost Planning: One of the hidden strengths of Electric Van Contract Hire is its predictability in financial planning. With fixed monthly payments, businesses can budget more effectively, avoiding unexpected capital expenditures from vehicle ownership.

  • Residual Value Risks: As previously mentioned, depreciation is a significant concern with vehicles, especially electric ones, due to rapid technological shifts. Contract hire eliminates the risk associated with residual value fluctuations, offering financial peace of mind.

10. Enhanced Employee Satisfaction:

  • Latest Models for Staff: Providing employees with the latest models of electric vans can significantly boost morale and job satisfaction. A modern, efficient, eco-friendly fleet can make employees feel valued and underline the company's commitment to sustainability and innovation.

  • Safety Benefits: Newer electric van models come equipped with advanced safety features. Ensuring the safety and well-being of staff should always be a priority, and Electric Van Contract Hire can play a pivotal role in this regard.

van leasing

In Conclusion

The electric revolution in the transport sector isn't a fleeting trend; it's a transformative shift dictating the future of business logistics and transportation. Electric Van Contract Hire is not just a financial or operational decision but a comprehensive strategic choice. It invests in the environment, financial predictability, employee well-being, and a sustainable business future. As the electric horizon broadens and the UK propels forward, businesses have a unique opportunity to lead, innovate, and thrive.

FAQs

 

What is the government grant on electric vans?

    The UK government recognises the importance of electric vehicles (EVs) in reducing the country's carbon footprint. The government has established various incentives and grant schemes to promote the adoption of such vehicles.

    The Plug-in Van Grant: As of my last update in September 2021, the UK government was offering the Plug-in Van Grant, which reduces the cost of electric vans (that meet specific criteria) for consumers. This grant aimed to cover 20% of the purchase price, up to a maximum of £8,000 for smaller vans, with different amounts available for larger vehicles. The grant amount varies based on the vehicle’s CO2 emissions and ability to travel a specified distance with zero emissions.

    It's essential to check the UK government's official website or consult a local dealership to get the most recent details on available grants, as grant schemes can evolve based on government objectives and budget allocations.

Can you lease a van for 1 month?

    Yes, leasing a van for just one month is possible, and it's typically referred to as "short-term leasing" or "Flexi-rental". Many companies provide this service to cater to businesses with immediate and temporary needs. Short-term leasing can be a viable solution if you have a short-term project, a temporary increase in business demands, or perhaps need a replacement vehicle.

    There are a few considerations for such a lease:

    • Cost: Short-term leases can be more expensive per day or month than long-term contracts.
    • Availability: The range of vehicles available for short-term leasing might be limited compared to traditional leasing.
    • Documentation: Some providers might require a comprehensive check of your business details, credit history, and driving records, even for a short-term lease.

Is van contract hire tax deductible?

    Yes, van contract hire can offer tax benefits for businesses in the UK:

    • Lease Rental Restriction pertains to the percentage of the van lease payment that can be claimed against profits. For vans with CO2 emissions, the amount claimable is often restricted. However, electric vans, which emit zero CO2, typically allow for the entirety of the lease payment to be claimed against profits.

    • VAT Recovery: Businesses can potentially recover 100% of the VAT on the lease rental of a van, provided the van is exclusively used for business. If there's any private use, the VAT claimable might be restricted.

    It's always prudent to seek advice from a tax consultant or accountant to understand the specific implications for your business.

How much cheaper is an electric van to run?

    Electric vans can be considerably cheaper to run compared to their diesel or petrol counterparts for several reasons:

    • Fueling Costs: Electricity is generally cheaper than diesel or petrol. Charging an electric van, especially during off-peak hours or using a business's own renewable energy source, can lead to significant savings over time.

    • Maintenance: Electric vans have fewer moving parts than traditional vehicles. This can translate into lower maintenance costs, as there's no need for oil changes, and wear and tear on components like exhaust systems and transmissions are reduced.

    • Tax Benefits: As previously mentioned, electric vans can offer significant tax advantages, which can lower the total cost of operation.

    • Congestion Charges: In places with congestion charges like Central London, electric vehicles often benefit from significant discounts or complete exemptions.

    While there are initial higher purchasing costs associated with electric vans, the running costs are generally lower, making them a cost-effective option in the long run.

Electric Van Leasing Special Offers

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£383.12 Per Month (inc VAT)

£3,448.08Initial Rental

  • 24 months
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£383.12 Per Month (excl VAT)

£3,448.08 + VATInitial Rental

  • 24 months
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PEUGEOT PARTNER LONG DIESEL

950 1.5 BlueHDi 100 Professional Premium + Van

£354.87 Per Month (inc VAT)

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  • 48 months
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Volkswagen ID. BUZZ CARGO

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£5,356.62Initial Rental

  • 48 months
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£5,356.62 + VATInitial Rental

  • 48 months
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PEUGEOT e-PARTNER STANDARD

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£420.13 Per Month (inc VAT)

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PEUGEOT e-PARTNER STANDARD

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  • 48 months
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  • 5000 miles per annum
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1.5 BlueHDi 1000Kg Enterprise Ed 100ps 6 Speed S/S

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  • 48 months
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  • 5000 miles per annum
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  • 48 months
  • 5,000.00 miles pa
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  • 48 months
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  • 48 months
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  • 48 months
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£260.85 Per Month (excl VAT)

£2,347.65 + VATInitial Rental

  • 48 months
  • 5,000.00 miles pa
  • 48 month term
  • 5000 miles per annum