FEATURE
Taking the
High Road David McEwen, Head of Business Development at Agnew Leasing, talks to Ambition about how the Whole Life Costs of integrating electric vehicles into traditional diesel and petrol fleets far outweigh any reason for hesitancy and one of NI’s biggest employers is a testament to this. Construction giant GRAHAM, whose 300-vehicle fleet is managed by Agnew Leasing has begun the process of integrating EVs into its fleet in a move that is set to be emulated by the rest of the corporate world in the coming years. It is a decision that will serve GRAHAM well in terms of supporting its sustainability goals, reducing costs and offering its employees more economical travel solutions. “More and more larger businesses are looking at either integrating or entirely changing their fleets over to EVs and we are advising them on the cost structure and practicality,” says Agnew’s Head of Business Development, David McEwen. “Most businesses are seeking to increase that sustainability element of their business and we are able to advise them on that by measuring the true costs of transferring to EVs.” He says the company uses a marketleading fleet analysis software suite from Deloitte. This software enables Agnew Leasing to build bespoke solutions taking account of both the specific requirements of the company and its drivers, whatever the situation. The software also facilitates the ability to utilise a financial model known as Whole Life Cost (WLC) – a term given to the overall cost for your fleet vehicles over the term of leasing or ownership. Meaning critical factors such as tax relief, Class 1 NIC, fuel reimbursement and benefit in kind are fully accounted for.
“The benefit of tax reduction to drivers choosing an EV is obvious with potentially significant monthly cost reductions, particularly for higher rate taxpayers,” says David. He adds the key to making that fleet transition easier is to see beyond the headline monthly lease rental rates and, instead, focus on those WLCs for fleet cost savings. “Previously many companies used either the purchase price or monthly rental cost as the central criteria when acquiring vehicles. However, when considering the other costs of running a fleet such as tax relief, servicing, maintenance, fuel spend, etc., the monthly costs may not fully reflect the true costs over the lifetime of the vehicle.”
vehicles has been increasing significantly in recent years across all car manufacturers. UK law will ban the sale of new full diesel and petrol vehicles in 2030 and onwards – a deadline that is undoubtedly further fast-tracking the improvement and availability of electric vehicles. Typically, most electrical vehicles now have a range of 180–350 miles “and that average has increased and will continue to as time goes on,” David advises. “This means that for many businesses and drivers previous range anxiety concerns have been reduced or removed.” He says: “There may well be some drivers whose requirements mean EVs are precluded; however, we will still be able to recommend what improvements you can make and how they will impact your fleet, depending on your activity and driving trends. “We’re finding, in some cases, new working patterns since Covid-19 have had an impact on reduced mileage and in some respects, make the adoption of electric vehicles easier.
And this is the kind of information Agnew Leasing can divulge for any make or model currently available.
“The big point here is helping businesses and staff members fully understand the benefit of switching to electric vehicles. We see this as more of an evolution over time rather than a revolution.
There are three main types of electric vehicles in the market. They are classed by the extent that electricity is used as the energy source: BEVs, or battery electric vehicles, PHEVs or plug-in hybrid electric vehicles, and HEVs, or hybrid electric vehicles. All three vehicle types are available at Agnew Leasing.
“If a company is introducing BEVs into their car selection policy it is important that employees are part of that journey and they’re fully informed. Most drivers will quickly understand the benefit in terms of tax savings and we can also provide FAQ documents or even demo days working closely with the HR team in the business.”
David continues: “Sustainability reporting for businesses is already a critical factor for most businesses and integrating EVs into your fleet can significantly enhance your sustainability efforts.”
One employer that has been early to adopt the integration of BEVs is GRAHAM.
The number of available electrical
Jonathan Hall, Director at GRAHAM, said: “At GRAHAM we have always maintained a keen focus on costs and Agnew Leasing has continued to assist
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02/11/2022 14:52