Pros and cons of electric van leasing

Is an electric van right for you and your business?

With the automotive landscape shifting gear towards sustainability, it's a question many business owners are navigating.

With electric vehicles accelerating in popularity and charging infrastructure expanding across the UK, range anxiety is quickly becoming a thing of the past.

There's no better time to charge up your business operations with an electric van lease.

And making the switch isn't as uphill as it might appear from the outside.

Though there are considerations like range, charging accessibility, and upfront cost to weigh up, the benefits of electric van leasing often outweigh the drawbacks.

With more cities introducing Low Emission Zones and charging combustion vehicles that don't meet strict guidelines, running an electric van – or even a fleet – could drive down your expenses over the lifetime of your lease.

We've highlighted the key factors to consider, helping you navigate the road ahead and make the decision that keeps your business miles ahead.

Benefits of electric vans

Cheaper running costs

On the surface, an electric van may seem more expensive, but this is mostly down to the cost of producing the electric battery and motor.

Over the van's lifetime, ongoing running and maintenance costs tend to run a lot lower when compared to a similar combustion engine van.

It's cheaper to fully charge an electric van than to brim a tank of fuel, because the cost per mile of electricity is lower.

Maintenance costs tend to be cheaper too, because EVs have fewer moving parts that need servicing, and they're not as hard on their brakes either, thanks to regenerative braking technology.

If you're looking to keep more money in your pocket over the longer term, switching to an electric van could put your business in the driving seat financially.

Futureproof your business

The need to tackle climate change is accelerating, and with the 2030 diesel and petrol ban approaching, switching your van or fleet over to electric could set you up perfectly for the road ahead.

Many cities are following London's route and introducing Low or Zero-Emission Zones to limit the number of emissions-producing vans in urban centres.

To avoid these charges, particularly if your business regularly operates in and around London, consider switching to an EV before these regulations hit the brakes on your operations.

It'll boost the image of your business too, showing customers and clients that you're environmentally conscious and ahead of the curve.

Company benefits

Making the switch could also save you some of your hard-earned money in terms of taxes.

Electric vans are exempt from many of the taxes charged on combustion engine alternatives.

For example, the Van Benefit Charge, a tax paid if an employee uses a provided van for personal as well as business journeys, and the Van Fuel Benefit Charge, which is a tax on employees reimbursed for fuel for personal use.

Incentives

As part of their push for more electric vans, the government have introduced several incentives to make the switch easier.

The government Plug-In Van Grant covers 35% of the purchase price up to £2,500 for small vans (up to 2,500kg) and up to £5,000 for larger vans (up to 4,250kg).

It's worth noting that not all vans are applicable – only those that have been approved by the government.

There are also schemes to help cover the costs of workplace chargers, free parking for EVs in some areas, and exemption from charges like the Ultra Low Emission Zone (ULEZ) charge.

Better spec 

Many manufacturers have turned their hand to electrifying their most popular Internal Combustion Engine (ICE) vans, and often offer the electric version in one or two specs.

If you choose one of their higher-end trims, the van will likely come with advanced safety features, a comfortable cabin, and all the tech you need to keep your business running smoothly on the road.

Electric vans are also quieter to drive (thanks to their electric motors), there's no faffing with gears, and the stop/start driving you’ll do around town suits their regenerative braking capabilities perfectly.

Disadvantages of electric vans

As with everything in life, there are two sides to the story.

Electric vans do have some cons, and it's worth taking these into consideration before you shift into electric.

Range considerations

Range remains a key concern for many prospective EV adopters.

However, research has shown that many van drivers, especially those in urban areas, only cover around 50 miles a day.

If you spend vast amounts of the day on the road, or if you work in a more rural area, you might need to do a bit of number crunching to see which electric van will work for you.

But the average WLTP Comb range for an electric van is 150-200 miles, which is more than enough to keep you going. And if you charge your van overnight (just like you would your smartphone), you should have no issues getting to where you need to be.

Upfront costs

When it comes to affordability, though the initial outlay for electric vans can be higher, the costs across the lifetime of that van tend to run cheaper.

Leasing is one way of spreading the cost, as you can simply add the maintenance package to your lease. Helping you to balance the books and free up capital for other aspects of your business.

Ready to make the switch?

Considering a jump to electric for your next van lease?

The road ahead looks promising.

Electric vans offer significant long-term savings, environmental credentials that keep you ahead of regulations, and impressive performance that might surprise you.

While range considerations and charging infrastructure remain factors to weigh up, leasing provides the perfect low-risk route to electrify your business.

You'll spread costs evenly, avoid depreciation worries, and can easily upgrade as technology advances.