Reduce Your Fuel Spend by up to Two-Thirds with Electric Cars

Want to see how you can reduce your fuel spend by up to two-thirds with electric cars? Read on…

The physical cost of getting employees to and from customer sites, meetings, training and other commitments can be quite large. For many organisations it is second only to payroll. Unlike payroll costs, however, you won’t see a smooth but gentle line increasing over the years for a fleet. You see spikes in motoring spend fuelled by more influences outside of your control than those factors within it. Speaking of fuel, fuel spend is one of the largest component parts. But, it’s one of the simplest to make savings on.

Let’s take the simplest first.

If you have employees using their own car and being reimbursed at 45p p/m, you are undoubtedly giving money away. In addition to this, you’re taking a huge grey fleet risk. The first thing to remember is that reimbursing employees at 45p p/m (pence per mile) is incentivising them to drive! If an employee is driving from Birmingham to Newcastle and back, you’re giving the employee £180! Not to mention the 6 to 8 hours of M1 stress. That’s one hell of an unproductive day for everyone concerned! And the driver will make a huge £140 profit on the fuel cost!

The 45ppm is set by HMRC for very occasional short trips to compensate for fuel and wear and tear. However, it just doesn’t stack up when the employee drives longer journeys. In fact, you could hire a car and reimburse fuel at the exact cost for around £70 maximum. Thus, meeting your duty of care and keeping your team safe. Better still, a train ticket. Slightly higher cost, depending on when you book. Typically costing £90, plus a £10 taxi at the other end. The value of 6 hours of work on the train is huge. Travelling doesn’t need to be non-productive. You could even send employees first class for the same cost as the fuel reimbursement!

You may also want to consider that around 60% of all journeys are deemed as unnecessary.

It can be easily overcome by a video conference or better diary planning. We at Fleet Evolution generally always try to book meetings when we are local to you. In 70% of cases, we achieve this just by asking the question.

If you have a company fleet, then you don’t need to worry about 45ppm. If you have as few as 10 company cars covering 10,000 business miles a year, you’re spending typically £42,000 on fuel every 3 years. You could cut this by more than half! Simply by moving to electric! The cost of the car to you is the same and this includes fast charge points at work. Modern electric cars easily cover 230+ miles between charges. This accounts for over 92% of all work trips! You could fund hire cars where longer trips are made and still cut your costs to below £20,000.

It’s simple to charge while on the go! You could even read our blog on charging infrastructure here. We need to introduce your team to this slowly and offer alternatives where a mid-trip charge may be needed until all become comfortable. Your team will also enjoy 0% BIK tax from 2020, as opposed to a typical £90 now for petrol’s and diesel’s! If it’s through us they can swap for a diesel for family holidays/excursions and get free charging at home too!

There are lots of ways to cut your fuel bill. These are just a few. If you don’t want to manage the changes yourself, we can happily manage this for you. All you need to do is make the change today!

 

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