Why should you consider leasing an electric vehicle?
The incentives of leasing electric may differ from person to person, but the benefits are unquestionable.
Whether it's technology, the driving experience, environmental issues, or costs savings, theres a reason for everyone to seriously consider an electric vehicle as their next leasingchoice.
Some EV drivers are often gadget enthusiasts looking for the newest vehicle technology and for those tech savvy people an electric vehicle will certainly meet those desires. Whilst the environmentally conscientious among us may lease electric to take steps towards being a greener citizen.
The attraction of leasing an electric vehicle obviously goes beyond simply having the experience, the latest technology or being green. The more considered reasons that electric vehicles are proving increasingly popular are primarily financial.
As with most vehicle leases the monthly payments are lower than those for a vehicle purchase. Making leasing a cost effective way of getting that new technology fix, and reducing emissions.
The absence of a fuel cost and relative low running cost is an obvious draw. The tax saving for business owners and company car drivers is the other huge financial advantage.
Since the April 2020/21 tax year, there have been tax exemptions on electric (and low emission) vehicles which has increased the popularity of electric company cars massively.
The 0% Benefit in Kind rate that was applied to company car drivers in pure electric vehicles is expected to increase to only to a very nominal 1% in 2021/22. So we expect the demand for electric leased vehicles to continue into this year and beyond.
In fact, at ICR, we have seen a 25% increase in demand within the past year and expect that increased demand to translate into representing over a 1/3 of our leased fleet by the end of 2021.
Our electric expertise, vehicle choice and availability is second to none, so get in touch today and see what we have to offer. Perhaps with Milton Keynes being referred to as the electric vehicle hub of Europe we are ideally placed to give advice!
Contact us at ICR to get more information on your potential tax savings or visit the HMRC website for more guidance.