Financing Electric Vehicles | Electric Vehicle Finance | Company Car Finance

Financing electric vehicles

Financing electric vehicles 750 400 Lorna Slee

Businesses have now recognised that thanks to the advances in battery technology, it is now far more beneficial to introduce electric vehicles into their commercial fleet. Not only can a business benefit from the improvement in the distances that electric vehicles can now travel, but it can also meet some of its corporate responsibilities in terms of climate control and going green.

Investment in any type of commercial electric vehicle, especially for a business operating in the transport and logistics sector, brings broad benefits. The other positive is the availability of car finance. There are now come excellent finance products available, and some will even include the costs required for installing electric charging points.

Probably the most popular form of electric vehicle financing is asset finance. This solution can be used to purchase a new electric company car, an electric van or a fleet of electric vehicles. Ultimately if these purchases can help to improve the operational efficiency of the business whilst also helping it to grow, then they become valuable business assets.

Asset finance will allow the purchase of the vehicles whilst being able to spread the costs out over a set period of time. There are actually a number of options available under the banner of asset finance, particularly hire purchase and finance lease. These can both be used to acquire new commercial electric vehicles.

  • Hire purchase gives you the electric vehicle immediately. You agree a payment plan for a fixed fee over a number of months, at the end of this time you can then choose to hand the vehicle back, outright purchase it or take out a new agreement for a brand-new vehicle.
  • Finance leasing is typically a longer-term agreement (in comparison to hire purchase), you again pay a fixed monthly price over a specific term for the vehicle. At the end of the agreement, you simply return the vehicle and can look to source a new vehicle with another finance leasing package.

Some of the key benefits for purchasing electric vehicles through asset finance are:

  • The overall reduction in environmental impact, e.g. less noise pollution and better air quality
  • An improvement in safety, electric vehicles are built with latest advances in safety and technology
  • Ongoing costs savings thanks to the increase in vehicle range

One thing often overlooked is that business owners can now upgrade their own company car to some of the latest state for the art electric sports cars. We have recently assisted with the purchase of an Audi E-tron GT, a Porsche Taycan and a Tesla Roadster – all through asset finance. More benefits are that you can claim the VAT back through the business and no company car tax to pay for the individual.

If you would like to find out more about how you can finance a new electric vehicle, please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.

We can provide you with tailored business finance solutions.

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