Analysis: How much could EVs save on the road sales reps?

Let’s not fool ourselves, switching to EVs isn’t going to save the planet. They’re also not the solution to congestion, or the way out of the obesity crisis. It’s also a little perplexing that they qualify for various government grants and subsidies, while eBikes do not. However, like the bicycle, their saving grace comes in the form of reduced emissions in usage and high re-cyclability.

A quick Google search reveals EVs are 50% to 60% less harmful over their lifetime than fossil fuel equivalents. So, why might the bicycle industry want to take a closer look at EVs? Apart from cost reduction, I’m going to suggest three reasons: Reputation, motivation, and taxation.

Reputation

It does the industry no harm to keep its house in order, by using low emission vehicles while selling our low emission vehicles. Perhaps it wouldn’t do any harm to see the Pro-Peloton followed by electric support cars and sponsor caravan too?

Motivation

Many in the industry (and indeed our consumers) have deep and genuine concerns about the environment. We are also quite a tech-focused industry, so, surely the latest, greatest and non-polluting technology is right up our street?

Taxation

Nobody likes paying tax and EVs realise big savings through your business paying lower tax. With no Congestion Charge, no ULEZ and no Vehicle Excise Duty for most vehicles. Plus, very low BIK for both the employer and the employee, currently just 1% and locked in at 2% until 2025. And of course, none of the fuel duty + 20% VAT which makes up around half of what you pay at the pump. Keep in mind that any electricity that goes into your vehicle at home has a lower 5% VAT rate too. There’s even an equivalent to the “Cycle to work scheme” for employees who don’t qualify for a company vehicle. Meaning any member of staff could pay for an EV through salary sacrifice, saving both income tax and NI.

Ask the Accountant

Don’t be fooled by the screen price of an EV, it’s the ‘all-in’ cost that matters. Whether you go down the leasing, purchase or used purchase route, your accountant knows your business best. Here are just some of the cost-saving options you may want to discuss:

I’ve been running EVs as company vehicles since 2016. Firstly, with a (new) BMW i3 leased via my Ltd company, then later by purchasing an older (used) Tesla. I’m a high mileage driver who also has to contend with central London charges. My cost savings have worked out around £300 per month with both vehicles. That’s the ‘all-in cost’ of an EV vs the ‘all-in cost’ of running the diesel estate car I had beforehand. Of course, I’m not the only one in the industry making the switch:

Stephen Loftus – Chief Commercial Officer, Brompton

A great example of a company which has considered both reputation, environment and their staff is Brompton. Stephen Loftus tells CIN “We have six chargers and 15 EVs using the site and about another six vehicles on order through our salary sacrifice / leasing scheme. We have the infrastructure for another four chargers to be installed over next few months and we save about one ton of CO2 per month with the charging. It’s all part of our broader push on sustainability through all elements of our business.”

Damian Hackett – Country Manager Orbea UK and Ireland.

As a higher mileage driver, who is also based in London, he’s realised several benefits from switching to an EV.

He tells CIN “I must admit I’m quite blown away by the tech in these cars. My favourite thing is how you can wake up to a better car, with over the air updates they’re always coming up with something new. They certainly help you drive longer distances and arrive without feeling too fatigued, London to Dublin and back again was no trouble.”

Matt Wrigley, Sales Agent

Matt has been running a Tesla Model 3 on a PCP deal for the last two years, coming from a Škoda Estate car before that. His main reason to switch (being a self-employed agent) was to reduce cost. “Last month I drove over 3,000 miles and it’s cost me approximately £150 in electricity from charging at home on a cheap EV tariff, with a little help from my solar panels. Even if I had a good diesel estate car, that would be a fuel cost in excess of £680 these days. That’s an incredible saving, on a car which is costing me very little in depreciation, almost zero in servicing, all whilst improving the local air for my daughter’s future.

I see lots of reps around driving in transporters, and not only is it costing an absolute fortune in fuel, but our industry also really isn’t being very green if we all used big diesels.” He recently switched to a Tesla Model Y to get a bit more cargo space and found his Model 3 had lost very little value when it came to trading in, meaning his deprecation and overall running cost was even lower than he expected.

Tony Evernden – Owner, Evernden Cycles
Tony runs a Nissan e-NV200 electric van as most of his deliveries are within a 25-mile radius of his store. His 2017 vehicle had a claimed range of 106 miles, and nowadays does about 90 miles in the summer, reducing to 70 during the winter. He can charge at home and at work and Tony tells us it’s saved him around £200 per month in fuel, as well as being great to drive and very reliable.

In truth I’d really like a van, but right now, passenger cars have a lot more range, with many achieving 250 to 350 miles, while most vans are still in the 150 to 250 mile bracket. Whether you have your eye on a car or a van, turn the page for my top 5 tips for making the switch to EV…

TRY BEFORE YOU BUY

You can find out if an EV will really fit into your daily routine by taking a longer test drive. If your local dealership won’t offer this, you could consider a short-term rental. National companies like Hertz or SIXT have started adding EVs. There are some EV specialists too, like Portsmouth’s Volt-age or Onto, who deliver-to-your door. Download ZapMap and ABRP on your smartphone before you collect your vehicle, this will help you plan your charging.

CONSIDER HOW YOU CARRY BIKES

A test drive also means checking out those important stowage factors, like how many bags or bikes will fit inside, and whether you can add roof rails or a tow ball mount/rack. A word of warning on that one. Many EVs are optimised to reduce drag to maximise their range. And drag is, of course, exponential with speed. Although roof mounted racks don’t make a great of difference up to about 50mph, at motorway speeds I found that range can drop by around 30%. So, I switched to a tow mounted rack, which seems to affect range by more like 10%. However, not all vehicles are tow hitch compatible, and some can only be “factory fitted”, so check the spec carefully.

CONSIDER CHARGING

Most people have a (slow) charger nearby, perhaps in a supermarket carpark or town centre. You can also charge at home using a three-pin socket, so if you rent an EV for a short period of time, you won’t need to get a home charger installed just to try things out. If you do take the plunge, a home charger offers faster fill ups and more convenience though.

When (rapid) charging, out and about, I’d suggest you top up “little and often” as the public charging network can often be full and/or unreliable. If you’re trying out a Tesla, it will also tell you where you can use its own superchargers as you travel around. If you’re trying any other auto brand, you’ll need to plan your charging stops and that may include signups for several apps. Again, Zap Map can help you there, have a look at Channel 5s recent programme “Should I buy an Electric Car” for more.

DON’T BELIEVE THE OFFICIAL RANGE

Like their fossil fuel equivalents, EVs have an official mileage which is based on a standardised government test. It’s not realistic and you probably need to take off around 10-20% for most published ranges.

LOOK AT YOUR DRIVING (AND LIFESTYLE) HABITS

You may find that most of your journeys are local. If you only travel further afield a few times a year it may work out more economical to choose a cheaper vehicle with a lower range. You can always hire a longer-range vehicle just for those trail park trips or family visits?

When it comes to lifestyle, EVs have a few party tricks. From Tesla’s video games to entertain the kids or the new Kia’s ability to charge an external device from the battery. On a practical level, many have a “’frunk’, which as well as providing extra stowage can be more secure than a boot. And being electric, most have an App that allows you to defrost and warm up the car remotely on cold mornings.

So, perhaps it won’t be long before we see someone powering an eBike, lighting, coffee machine or cooker at a demo event, sportive or race near you?

YOU’VE GOT THE POWER

If an EV is to achieve its maximum reduction in both cost and harm, it’s only as good as the power that supplies it. Many homes like Matt’s have solar power and/or a battery system, to ensure their vehicle runs on the lowest or zero carbon electricity. Less common is solar charging at commercial locations. Whilst this might not be easy in High Street locations or leased premises, some in the industry own their warehousing or industrial units. With spiralling energy costs, no doubt many are investigating this cost reducing measure. Installing solar could power both company vehicles and premises, now that would be a win-win.