Will commuters abandon public transport for cheap electric cars?
With employees in the UK being encouraged to return to work, but being discouraged from using public transport, figures show that electric vehicles could be one of the cheapest travel options.
A survey by electric vehicle leasing company DriveElectric asked public transport commuters if they were planning to change their journey to work post-lockdown. The results showed that 43% were considering an EV rather than using public transport; 33% said that they were planning to work from home; 13% said they would be driving a petrol or diesel car; and 11% said they would walk more.
According to DriveElectric, total annual costs for a new electric car could be as low as £8,803, compared with £8,935 for the train, and £12,950 for a new diesel car, for an employee commuting into London. The figures take into account the new, more expensive London Congestion Charge, now increased from £11.50 to £15 per day – except for EVs, which are exempt.
The zero percent company car Benefit in Kind (BIK) tax for pure electric vehicles from April 2020 could also save thousands of pounds per year for company car drivers. However, many businesses have company car policies that still don’t allow employees to choose EVs.
DriveElectric has found that businesses have concerns about issues ranging from the purchase price of EVs to how to charge them, resulting in companies choosing not to offer EVs as an option for employees.
Mike Potter, Managing Director of DriveElectric, comments:
“People are concerned about using public transport when they return to work, and a car is the only viable alternative option for many. The improvements in air quality that have been experienced during lockdown could be maintained by using electric cars, but many company car policies prevent employees choosing EVs.
“Our experience of helping companies shift to ultra-low emission vehicles since 2008 has shown that the majority of perceived challenges associated with the adoption of electric vehicles by fleets can easily be addressed, and incorporated in a company car policy that supports EVs.”
Although under normal circumstances public transport is the preferable travel option to reduce congestion – and walking and cycling are even more ideal where possible – EVs could offer a lower cost and safer option, and could be used in conjunction with flexible working hours to minimise travel and congestion at peak times.
DriveElectric is an electric vehicle leasing company that has been helping organisations and individuals to adopt EVs to save money, lower emissions and transition to low carbon energy since 2008.
Train v EV v diesel car annual costs for a London commuter:
Rail
Season ticket from Maidenhead to London £4,400
Station car park £1,035
Older car depreciation and interest annual costs £1,200
Maintenance annual cost £800
Fuel annual cost £1,000 (based on 20 pence per mile x 5,000 miles)
Insurance £500 (estimate)
Rail annual costs total: £8,935
New EV
EV lease £5,028 (Peugeot e-2008)
Maintenance £450
Insurance £800
Fuel £525 (based on 4 pence per mile x 15,000 miles)
London Congestion Charge £0
London T Charge £0
Parking £2,000
New EV annual costs total: £8,803
Plus £0 Benefit in Kind car tax if a company car
New Diesel Car
Lease £4,000
Maintenance £650
Insurance £800
Fuel £2,500 (based on 15 pence per mile x 15,000 miles)
London Congestion Charge £3,000
London T Charge £0
Parking £2,000
New diesel car annual costs total: £12,950
Plus £1,767 Benefit in Kind car tax if a company car = £14,717 total
(BIK based on a Nissan Qashqai 1.5d Tekna, list price £28,500, 31% BIK rate, 20% tax payer)
