Pros and cons of electric van leasing

Should you make the switch from ICE to electric?

Electric van leasing is becoming more popular with businesses from couriers to construction companies.

Knowing whether an electric van is right for you and your business is a question many people are toying with.

But making the switch isn’t as tricky as it might look from the outside. Though there are considerations like range, charging, and cost to consider, the many benefits of electric van leasing are likely to outweigh the cons.

And with more cities introducing low emission zones, and charging the combustion vehicles that don’t meet strict guidelines, running an electric van – or even a fleet – could end up saving you money over the lifetime of your lease.

We’ve highlighted some of the best reasons to make the switch, to help make that decision a little easier.

Benefits of Electric Vans

1. Cheaper running costs

On the surface, an electric van looks 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 charge an electric van to full than it is 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.

If you’re looking to save some pennies over the longer term, switching to an electric van could be your best bet.

2. Future-proof your business

The need to tackle climate change is becoming more urgent, and with the 2030 diesel and petrol ban looming, switching your van or your fleet over to electric in the next couple of years could set you up nicely for an electric future.

Many cities are also taking London’s approach and introducing low or zero-emissions zones to limit the number of emissions producing vans on the road. To avoid these charges, particularly if you’re working in and around London a lot, consider switching to an EV.

It’ll boost the image of your business too, showing that you’re environmentally conscious.

3. Company benefits

Making the switch could also save money on tax.

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

4. 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 ULEZ charge.

5. Better spec 

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

This tends to be one of the 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 on the road.

Electric vans are also quieter to drive, thanks to their electric motors, there’s no faffing with gears, and stop/start town driving suits their regenerative braking capabilities.

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.

Range is a big worry for a lot of people. 

But 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 driving, or if you work in a more rural area, you might need to do a bit more number crunching to see which electric van will work for you – vans like the Toyota Proace Electric have a claimed range of up to 205 miles, compared to the Mercedes-Benz e-Sprinter’s 95-mile range.

But if you charge the van overnight like you would your smartphone, you should have no issues getting to where you need to be, particularly if you drive to work, park up for the day, and drive home again.

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 bundle the costs of the van and maintenance into one monthly payment, helping you to balance the books and free up capital.