Electric cars: you pay more, but ultimately less

While larger companies for CSR (Corporate Social Responsibility) reason have already embraced electrically rechargeable cars, there is still a lot of scepticism among smaller companies and the self-employed.

The majority of doubters mainly stumble over the high purchase price. It is easily 30 per cent higher than that of a similar car with an internal combustion engine. Those who are familiar with the matter know that you should not be blinded by the purchase price, though. If you look at the total cost of ownership (TCO), an EV is usually the better option all things considered and accounted for.

The Total Cost of Ownership is the sum of many elements. These are the main ones:

• 1.
  1.
  Depreciation. This is the difference between the net purchase price and the residual value.
• 2.
  2.
  Interest. Even if you buy rather than finance your vehicle, you pay interest, in the form of missed returns on your capital.
• 3.
  3.
  Registration tax (TMC/BIV) and yearly road tax.
• 4.
  4.
  Insurance.
• 5.
  5.
  Tyres.
• 6.
  6.
  Maintenance and repairs.
• 7.
  7.
  Energy costs.
• 8.
  8.
  Administration and management costs
• 9.
  9.
  Non-recoverable VAT.
• 10.
  10.
  Tax deductibility

Due to the higher purchase price, the depreciation of an electric vehicle is often higher than for a car with an internal combustion engine. That disadvantage is compensated for by the other elements, however. For example, you pay less in registration tax and road tax, and the maintenance and repair costs are also a lot lower.

Moreover, electricity is cheaper than petrol or diesel, provided that you can mainly charge at home or at the office. If you mainly use fast chargers, the price advantage is less pronounced. Finally, there is the aspect of tax deductibility. All costs associated with electric cars are 100 per cent deductible. In the case of a petrol or diesel vehicle, the deductibility is roughly between 50 and 70 percent. This is why the balance usually tilts in favour of the electric vehicle.

There are plenty of arguments. On the one hand, you get more discount on your car than when you acquire it yourself and, on the other hand, the residual value is insured. So you don't have to worry about a loss of value that might be higher than expected. In addition, all operational costs are covered: maintenance, repairs, tyres, etc. Insurance and breakdown cover are also included.

Those who lease also lose less time on administration and management. You receive one invoice per month that includes everything. The amount is always the same. No surprises, just perfect budgeting and peace of mind.

Planning on leasing an electric car anytime soon? Have a look at our EV offer!