THE company car is seeing a resurgence of interest thanks to electric cars with a zero rated company car tax banding from April 06, 2020.
A survey conducted by leading EV broker DriveElectric found that eight out of 10 employees currently opted out of a company car scheme are ‘likely’ or ‘very likely’ to move back to company cars. And it will be an electric company car.
Mike Potter, managing director of DriveElectric, said:
“Our survey suggests that, as long as incentives remain, the government’s target of all new car sales to be electric by 2035 is achievable, and in addition private buyers will benefit from an increased supply of two to four year old used electric cars, spreading the benefit of this investment.
“DriveElectric’s orders are already composed of 95% battery electric vehicles and our average fleet CO2 is 28g/km. Our order book suggests this will soon drop to 10g/km. With a wide range of new EVs currently coming to market, supported by financial incentives, 2020 is the ideal year for business users to convert to electric – and today’s company cars become vehicles for private motorists in a few years’ time.”
Why now is the right time to take out a business lease
Don’t forget to download our special feature on this – click the link to download Five reasons to take business contract hire
- Don’t pay benefit in kind tax with a zero emission car
- Big benefit in kind tax discounts on PHEVs
- Leasing an ultra low emission car is tax efficient for the business
- Business contract hire is also highly VAT efficient
- Going green lowers operating costs
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
