Electric vans have been slower off the mark in terms of popularity in comparison to electric cars. But now is the time to start reevaluating that as interest in electric vans accelerates.
Not least because for many traders an average daily route is often limited and certainly within the current range of most electric vans.
According to a report last year by van maker Vauxhall, the average tradesperson travels 191 miles for work during a week. The Vauxhall Vivaro, for example, has a range of 219 miles.
The Renault Trafic E-Tech has the longest range of electric commercial vehicles at the moment, going 279 miles between official recharging stops. The Volkswagen ID. Buzz Cargo Commerce Plus is good for 276 miles.
In other words the operational ability of electric vans is well within the requirements of many users, and as fuel prices rise, the lower cost of electricity looks increasingly appealing..
Understanding the tax advantages of electric vans
So electric vans can work operationally for trades and businesses. But the advantages also extend to tax benefits.
Companies that lease a new electric van can benefit from the following:
● 100% VAT relief on the monthly lease rentals for VAT registered companies (provided 100% business use)
● 0% benefit in kind taxation (provided 100% business use)
● No fuel benefit in kind tax - because electricity is not considered a ‘fuel’
● Corporation tax relief on all rental payments
For those companies that prefer to outright purchase a van rather than lease it, the tax advantages of choosing an electric van remain compelling.
● Accelerated cash flow thanks to 100% first year allowances of the purchase price against taxable profits
● 0% benefit in kind taxation (provided 100% business use)
● No fuel benefit in kind tax - because electricity is not considered a ‘fuel’
Other shared benefits whether the electric van is leased or purchased include the plug-in van grant which is worth £2,500 for small vans and £5,000 for large vans.
The result is that the tax benefits are immediate and measurable, and it is one of the main reasons electric vans are now being more seriously considered by both trades and companies.
In use benefits
From an operational point of view, electric vans are becoming easier to run in day to day use, particularly for businesses where vehicles return to a depot or base at the end of each day.
In these cases, charging overnight can fit into the normal routine without changing how the business operates, and many modern electric vans now offer ranges that cover typical daily mileage for urban and regional work. This makes it easier to compare running costs directly with diesel, especially as electricity prices tend to be more stable than fuel. It also saves time spent at the fuel pumps and pay and reclaim fuel expenses.
Expanding vehicle choice
There are plenty of established van makers offering electrified versions of their popular panel vans. For example, there’s the Ford E-Transit and Ford E-Transit Custom.
But the Stellantis brand stable - Fiat, Citroen, Peugeot and Vauxhall - provides plenty of choice, alongside those vans from Mercedes-Benz, Toyota and Volkswagen.
But recently new brands are establishing their presence on the commercial vehicle market.
Kia is one example with its PV5 panel van. Kia is positioning the PV5 Cargo as a flexible van platform that can be adapted for different types of work. In the UK it is available in two lengths, two heights and can be configured as Cargo, Crew and Chassis Cab.
Farizon is another new name to the market, a brand from the Chinese manufacturer Geely. Its SuperVan is available in three lengths, comes with a payload monitoring system and a range up to 247 miles.
Another Chinese vehicle maker, Chery, is set to debut its Delivan at the Commercial Vehicle Show taking place 21-23 April at the NEC Birmingham.
With such an expanding increase in choice, businesses are more likely to find a vehicle that fits their specific needs in terms of size, range, and payload.
Fitting out the van
Finally, the van itself is only part of the solution if it is not configured properly for the job. Many businesses need specific fit outs such as shelving and racking, refrigeration for perishable goods, or workshop layouts for mobile workers.
Gofor can support bespoke van fit-outs and customisation so vehicles are delivered ready to work from day one, helping avoid delays and providing greater business efficiency.
Contact us to explore how we can support your business.
