New orders for electric cars through salary sacrifice are on the increase because of shorter lead times, a wider range of new models and growing manufacturer support, says Fleet Evolution.
The Tamworth-based salary sacrifice and fleet management specialist, has seen electric vehicle (EV) orders rise by a third this autumn among its existing customer base, compared to the same period last year.
“EV orders are up by over 30% this autumn even if you exclude orders from new customers,” said Andrew Leech, managing director and founder of Fleet Evolution.
“This is despite the Government’s decision to extend the deadline for the ban on the sale of new petrol and diesel cars until 2035 which many feared would lead to a slowdown in EV orders as companies delayed green developments.”
Leech identified three major reasons behind the latest uptick in new EV orders.
“First of all, we are seeing lead times coming down to much more manageable levels across the board as manufacturers not only increase the supply of EVs to the market, but also expand the range of cars available, thereby widening consumer choice.
“Allied to the better lead times and increase in supply, we are now seeing discount levels of around 8-15% due to increased competition, which is making a big difference to monthly rentals.”
At the entry level to the market this equates to a typical saving of around £50 per month, while in the middle market it can be around £100-150 per month, according to Leech.
And, at the premium end of the market, he said that he was seeing some rentals on selected models falling by as much as £300 per month in certain circumstances.
“Put these factors together, and link that to many companies’ desire to implement corporate sustainability policies, and it adds up to increased interest in and orders for EVs,” he added.
“Our view is that there has never been a better time to make the switch to electric and salary sacrifice is undoubtedly the most cost and tax effective of acquiring a new EV.”
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Gareth has more than 20 years’ experience as a journalist having started his career in local newspapers in the 1990s. Prior to joining Fleet News in 2008, he worked in the public sector as a media advisor and is currently news editor at Fleet News.
NigelBoyle - 22/11/2023 11:43
Salary Sacrifice is an opton, however I have an EV on order and I want to own it at the end. I looked at Contract Hire and SalSac. SalSac was a lot more expensive for me and I discovered that there is no VAT recoverable hence the hidger cost,.so I went for Contract Hire.