How To Switch To An Electric Fleet Cost-Effectively

Electric vehicles (EVs) come with many benefits in a business context. A fleet of them can help protect the environment, lower operating costs, and improve a company’s standing with both the buying public and their own employees.

Despite the BBC’s 2021 predictions that EVs would take over ‘sooner than you think’, the approach to adopting these vehicles has still been somewhat staggered two years later. There’s economic uncertainty, and many firms are still struggling with their finances.

So, switching to an electric fleet might not seem like a resourceful step for many firms. Everybody knows these vehicles can be more expensive to secure, especially en masse.

But what if there were ways to make the transition more affordable? Could it be possible to make substantial progress in making your firm’s fleet electric? We’ll answer these questions and more after the jump.

Take Stock of Your Current Fleet

To know where your company’s going, you must first analyse where it’s been already. That way, any changes you make can have more strategic precision to them.

When you take stock of your current fleet, you should be looking for the vehicles that are most prudent for electrification. While you may not be able to overhaul your fleet in its entirety right away, electrification will be more promising in some areas than others. The better the first building blocks are, the stronger foundation you have to make further changes.

If you use a leasing company you can ask them to review the fleet and make recommendations.

Factors to consider include:

Which vehicles are used more than others?

If certain vehicles in your fleet have more downtime than others, it can make them better candidates for Electric Vehicle charging requirements.

Which vehicles accumulate the least amount of mileage?

Though the consensus is changing around how far EVs can go, people can still be nervous about driving them on longer trips. These reservations may apply to your fleet depending on the make and model of electric cars that you buy. Replace vehicles that drive well-known routes might be best at first, reducing risk.

Which vehicles use the most amount of fuel?

You may significantly reduce emissions by replacing the vehicles that use the most petrol and diesel. Your investment in EVs may then be more cost-effective in the ethical sense. If you have ultra-low emission vehicles, these would be the last ones to update.

Which vehicles do you spend the most on?

EVs don’t need as much maintenance as fuel-consuming cars, so swapping vehicles out on that basis could save money.

Which cars have the highest emissions?

Check the petrol and diesel vehicles for emission levels as this can help you decide which cars to replace with electric vehicles first.

So, as you can see, you shouldn’t be replacing your fleet vehicles all in one go or at random. Adopt a structured approach to the shift, which will be far more cost-effective for your planning.

Look Into Salary Sacrifice Schemes for Electric Vehicles

A salary sacrifice scheme may sound a bit ominous initially, but these initiatives can be advantageous for workers. They can also make EV fleets more feasible and affordable as well.

Salary sacrifice schemes can vary between providers, especially regarding an electric car.

Generally speaking, they form part of an optional benefits package within businesses. The idea is that employees can voluntarily give up a portion of their pre-tax salary in exchange for a better deal on leasing an EV. The employee can sometimes select the make and model of their EV and choose whether to sign the agreement for 2-4 years.

Some terms and conditions will be more favourable than others here. The vehicle can sometimes be used for both personal and professional purposes. Employees may also enjoy savings on National Insurance contributions and income tax. Other incentives may also be provided, such as discounts on charging facilities. Once again, though, offerings vary between providers, so do your due diligence beforehand if you’re interested in exploring these options.

If you have any concerns, LV Electrix’s advice on salary sacrifice schemes may dissuade them. They explain that employees could save up to 40% on their electric car lease, reaffirming that such arrangements can be more cost-effective. There’s also a detailed explanation of how these types of salary sacrifice schemes can safeguard your business, as there is a flexible range of risk protection options, and no upfront costs are required. To learn more, contact their expert team of consultants.

Train Employees Effectively

As we’ve indicated already (and as is generally well-known), how one uses an Electric car can determine its cost. If you want to transition to an Electric vehicle fleet as cost-effective as possible, it makes sense to train employees around best practices.

Things to learn more about could involve:

How to drive EVs most effectively

EV drivers can use smooth acceleration, range management, and regenerative braking can all be energy-saving and, thus, cost-saving.

How to charge EVs more effectively

Using off-peak hours can maximise productivity, and there may be smart-charging features to use depending on the make and model of the vehicle. 

How to improve battery management best practices

Using fast charging points appropriately and avoiding extreme temperatures can ensure batteries last longer. Long-term costs of Electric cars can often be associated with the lifespan of batteries, so it’s worth evaluating measures there more closely.

Plan Your Electric Journey

Providing workplace charging will help employees using the vehicles, but you should also plan journeys in advance and know where public charging is available. There are apps available to provide information surrounding charging points, too, so consider those as part of your journey planning.

Yes, there’s more than meets the eye regarding EV management, and ignorance can be expensive. Train your employees well, and an EV fleet will be more affordable.

Approach Stakeholders

EVs are an industry all of their own. People need to see it thrive to help the planet, keep people at work, and ensure business flows.

So, these cars aren’t just a resource for fleet operators – they’re a product and a commodity. That means you may be able to establish promising B2B relationships with energy companies, charging infrastructure providers, and other related entities in the sector.

These dynamics may be fine-tuned to incentivise you into switching to an electric fleet. Partners may be willing to ease financial burdens associated with the shift and pool resources and reduce infrastructural costs. Grants, loans, impact investments, and joint funding initiatives could all be orchestrated.

There can be a political element as well. Often, partners may collaborate to merge resources and lobby the government for better tax credits, regulation conditions, and grants. Such can be done on large-scale national levels or small-scale regional levels. It’d take time to see lasting change on that basis, but it’s a fight worth trying to win.

Bide Your Time If Necessary

Not every business can switch to an electric fleet feasibly today. It’s important to acknowledge that and not set false expectations.

Nevertheless, there’s reason to hope, even for firms at the bottom end of the EV ladder. The most expensive technology tends to be the rarest, and though EVs fell into that ‘seldom-seen privilege’ category at one time, the consensus is changing today. There’s a greater emphasis on EV manufacturing from big automakers and smaller ones, and there’s a bigger appetite for their offerings.

Technology is always developing. The design and capabilities of batteries are getting better, and charging infrastructure is attracting more investment and becoming more commonplace instead of being a rare sight nationwide. It’s a speculative comment to make, but we believe that these developments will inevitably bring the costs of EVs down, making electric fleets more feasible in the process.

If making the switch to electric isn’t compatible with your business structure today, that’s valid. However, we recommend you keep an open mind and continue monitoring the situation. Electric vehicles are the future, and it’s highly unlikely society will turn away from that now. Governments have eco-friendly targets to meet, and the planet is at stake. Everybody understands that the more people drive EVs, the better, and part of that means making them more affordable as time goes on.

Corporate fleets have a huge part to play in reducing their carbon footprint for a greener future. It’s down to fleet managers to make the best decision for both the business and the planet.