Is an Electric Company Car Worth the Investment?
Electric vehicles (EVs) are becoming more affordable and accessible every year. But despite dropping prices and increased variety, we aren’t seeing many of these battery-powered vehicles used as company cars.
Is an electric car worth the investment? Here are a few questions to ask yourself before you sign on that dotted line.
Does the Car Have Sufficient Range?
One of the biggest challenges of electric cars is range. You don’t have the option of just stopping at a gas station if you’re running out of fuel.
Take a look at how far your company cars drive every day and how often they have to refuel. If you’re only driving around the city and only have to refill your tank every couple of weeks, an EV should have more than sufficient range.
But if you’re spending a lot of time traveling long distances or to remote areas, an electric car might not be the best choice, at least until its range improves.
Where Will We Charge the Electric Car?
Are your employees going to take their company car home? If so, do they have the proper equipment to charge them at the end of the day? Or will it be an “on-the-clock only” vehicle, used and charged during the workday and left in the office parking lot at night?
You can often charge modern EVs with nothing more than a 240V plug, similar to what you’d use for an oven or water heater. Keep charging options in mind when choosing an EV.
Can We Afford an Electric Car?
The nice thing about technology is that as it becomes more mainstream, it also becomes more affordable. If you’re looking for a new company car, you will often find that EVs are nearly the same price as similar gasoline-powered vehicles.
The base model of the Mustang Mach-E — Ford’s fully electric SUV — will set you back $42,895. As of Q1 2021, the average price for a new vehicle is more than $40,000, putting the Mach-E right in the same ballpark. The great news for Mustang fans is that the fully loaded trim package boasts a 300-mile range. That’s not too shabby for an EV of any type.
Can We Afford Maintenance and Insurance for EVs?
Whether you’re purchasing a new EV or leasing one, maintenance is going to be one of the biggest expenses after your initial investment.
Insurance may be different for an EV than it would be for a regular gasoline-powered company car as well. Make sure you include these costs in your calculations when deciding whether or not to invest in an EV for your company car.
Are There EV Incentives Available?
This can help you make back some of the money you’re investing in electric vehicles for your business.
Federal and local governments may offer incentives to make purchasing or leasing an EV even more lucrative. For example, you can receive a 30% tax credit of up to $30,000 for buying and installing an EV charging station on your property. Take the time to research the potential incentives before you start shopping.
Is Buying or Leasing the Best Option?
Should you buy or lease your EV? In some respects, there isn’t much difference between the two beyond the initial investment.
You still have to keep track of mileage, if you’re planning on obtaining a mileage deduction. You still have to worry about wear and tear, maintenance, and insurance. The main difference is your initial investment and what you’re able to do with the vehicle at the end of its life.
What About Intangible Benefits?
People are more concerned than ever about the impact they have on the environment, and they’re more than happy to spend a little more money with a company that’s doing its part to protect the planet.
Opting for EVs as your company car is a great way to put your money where your mouth is, so to speak, and show your clients and customers you care about the planet. It’s a small but intangible benefit that can help improve your company’s image and bottom line.
Is It Worth the Investment?
Is an electric company car worth the investment? In a nutshell, yes. Not only are you getting top-of-the-line technology and a vehicle capable of meeting all your needs, but you are also helping to protect the planet and may even save yourself a little money in the long run.
Electric vehicles might seem like expensive toys, but they’re becoming more affordable, practical, and accessible every year.
Take the time to do some research to see what electric vehicles might be best for your needs. The Mustang Mach-E that we mentioned is just one of many options available in today’s ever-growing market. An SUV might not be the best choice for you, but you’ve got plenty of models to choose from. Doing your part for the planet has never looked better.