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Discussion Starter · #1 ·
Blimey, I did a few calculations earlier, I鈥檓 currently paying 拢284 per month for my ICE company car 馃槼

When I go full electric I can elect to get a Kia eNiro 4+ and not only pay approx 拢170 tax per year but even better than that because it鈥檚 a lower car band than I鈥檓 entitled to my company will also pay me 拢150 per month for selecting that vehicle.

It鈥檚 and absolute no brainer to go full EV, even given my company requirement to install a charging point my own expense.

I really hope that other company car drivers are doing the numbers and electing for an EV.

Sorry, no other point to this post other than being surprised at the cost savings!
 

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You鈥檙e completely right! You鈥檙e actually making money! 拢170 per year on tax sounds too high.
 
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Kia e-Niro 4+ Yacht Blue. Jan 2021
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basic rate taxpayers will pay approx 拢80 this year in BiK on a 4+ eNiro, higher rate taxpayers 拢160.
These will double next year, but stay at that level for 3 years.

Factor in the fuel saving (after lockdown I will be saving 拢120 per month on diesel for my commute), and the car is almost free.
Have another glass!
 

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Discussion Starter · #6 ·
Sober now and thinking straight! I'll be paying in tax 拢157 per year as opposed to approx 拢284 per MONTH.

That's crazy! Why would anyone elect to have an ICE vehicle knowing those figures? Yes yes I know, there are plenty of reasons but for me with the range of the Niro it's unlikely that I'll ever need a public charging point, perhaps twice a year at motorway service stations? Anyway It's convinced me that a full EV is definitely the way to go and that's not even considering all of the other benefits.
 

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Do you pay child maintenance? If so, did you realise the 鈥渢axable benefit鈥 is also classed as income and you pay on that too!

So with my fuel allowance, AND my company car tax, AND the child maintenance, I was paying 拢754 per month - last year I paid 拢0. This tax year I will pay about 拢10 a month, and next year about 拢20.....

I worked out I will save about 拢20k in 3 years.

Yeh, I wonder at people running 40k BMW M3鈥檚 or X5鈥檚 as company cars, totally mental.
 

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You guys stop! I'm just a humble servant of the public sector who's unable to access these deals. I have tried but to no avail. The nearest I get to bik is when I open a packet of pens....

Seriously though, the EV sector needs pump priming and this sort of thing. I'm just envious... 馃檪
 

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I did this little exercise the other night for someone who told me there were "no significant cost savings going for an EV over an ICE car in the real world" - and then was startled by just how much they actually were.

If you have an ICE car and pay Child Maintenance then the difference is actually enough to make you weep.

Even as a private owner, it surprised me - Yes I proved my own point, but I didn't expect to prove it so well...

So here goes:-

(Moderators - I have used actual cars to show I haven't made up the figures - if that's not acceptable or breaks any rules please amend / delete the post and accept my apologies).

So I wanted to compare the cost of the car someone was looking to buy with a similar EV. Personally speaking I think the best in terms of range vs cost is the E-Niro at the moment and not sure that too many would disagree with me so used that as a comparison.

So I have done a comparison E-Niro to A class. The E-Niro is better equipped, in 4+ spec, and a roomier car, but it's the closest I can get to compare.

The A-Class - the 200 model with an auto, slightly slower to 60, but the closest I can get - the 250 is a bit quicker than the Niro so I picked the cheaper & more economical car.

Then to match the spec of the E-Niro, I had to add Distronic + which meant adding Premium Plus pack as well (all the features of which the Kia has as Standard). The E-Niro also has Ventilated seats, Full leather, Heated steering wheel 360 camera, full panoramic roof and a fair bit more too - but again wanted to be comparing like with like and have based it on 12,000m per year which I think is sensible.....

So that made the A-Class 拢36,730 - the E-Niro is 拢36,395 - and bear in mind the Niro is better specified and has a 7 year warranty - but to counter that, the Merc feels the classier product n terms of fit and finish and "perceived" quality - I can only say my Kia Soul is faultless after 9mths and 8000m so I suppose that makes it a "quality" product too.....

The person had said that an electric car was 拢10,000 more than an ICE one - well I feel this showed that a similar sized, spec for spec car wasn't actually that dissimilar in price.....

Cost​
A- Class A250 Auto + Distronic + and Premium Plus​
E-Niro 4+​
Purchase Price New拢36,330拢36,395
Servicingprobably 拢750 over 3 years?Free for 3 years (have to buy on a PCP but if you don't want finance you can pay that straight off without charge)
Annual Road tax拢145拢0
Company Car Tax 40% taxpayer 2021-2022
2022-2023
2023-2024
拢4504 ( 拢 375.41 per month)

not predicted to change, but if it does it will surely go up.
拢145.58 ( 拢12.13 per month)
拢291.16 ( 拢24.26 per month)
拢291.16 (拢24.26 per month)
Fuel benefit charge 2021 likely to increase slightly in 2022 and 2023拢2952 (拢246 per month)拢0
Fuel Cost at 拢1.20 per litre at 12,000 per year拢1157.00
拢1200 in year two assuming a small petrol price increase
拢1300 in year three assuming a small further price increase
N/A
Electricity cost assuming low use of free public chargers and using Octopus GO to charge at home at 5p Per KW拢157.89 Per Year - 12,000 miles at 3.8m per KWh (what I have averaged through last summer and this winter).
3 public rapid charges when away from home拢36
Servicing over 3 years拢 750Free - then estimated to be around 拢80 per year
TyresMuch the same for both cars
Depreciation (Estimate)A200 AMG line at Bristol, 3 1/2 yrs old and 12,000m in total 拢17,250 - so assume a 3 year old with 36,000m - around 拢15,000

Depreciation - 拢21,330
No 3 year old E-Niro's for sale - however a 2 year old E-Niro with 16,000 miles on is for sale for 拢28000 - was 拢33,000 when new, so 拢5000 depreciation in 2 years - so assume 3 years - depreciation of 拢7500 ??
Total Costs as a Company Car Driver
As a company Car driver receiving all private fuel paid for by company over the three years拢 22,368拢 727.90
Important note - if you pay Child Maintenance as I do - you will also pay 16% on the "taxable benefit" - so also.....16% x 拢55920 = 拢8947.2016% of 拢1819.75 = 拢291.16
So, as a 40% taxpayer, paying Child Maintenance, total cost of the car to you ----拢31315.20 or 拢869.87 per month拢 1019.16 or 拢28.31 per month
Saving for the EV as a Company car if you do NOT pay Child Maintenance拢21,640.10 over the three years.
Saving for the EV as a Company car if you pay Child Maintenance拢30,296.16 over the three years
Total Costs as a Private Owner
Fuel + Road Tax + servicing拢3657 + 拢450 + 拢750
= 拢 4857
拢 474 + 拢0 + 拢0
Insurance (varies from person to person - but I had a quote of 拢287 for the Soul I drive) - the Merc a bit less拢250 for 3 yr
拢750 for 3 yr
拢287 per yr -
拢861 for 3 yr
Depreciation拢21,000拢7500 Somewhat of a guess
Total Cost for 3 years拢26,607拢8835
Total Cost per Mile (36,000m in total)拢0.74 per mile拢0.24 per mile
Saving with the EV拢17,772 over 3 years


I really don't think even I realised how much going electric would save.
 

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Seriously though, the EV sector needs pump priming and this sort of thing. I'm just envious... 馃檪
The benefit for the rest of us will be in around 3 years time when, like clockwork, a flood of ex-fleet EVs hits the used car market. I reckon it could get quite interesting because I don't think there will be anywhere near enough used car buyers willing to pay the kind of used EV prices we see at the moment. As a tax free company or salary sacrifice car EVs are great, but as used vehicle at current prices they're just not attractive to most car buyers, they won't sell in the volumes needed.

I wouldn't be at all surprised if used EV prices suffer something of a price crash and we see something of a rebalancing, lower used prices to make them more attractive to a second owner and higher leasing costs / driver contribution, to rebalance the costs and benefits between the first and second owners.
 

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There absolutely will be a balancing - however I still think they will retain better money than ICE.

Remember in 3 years we will be at 2024 - 2030 will not seem so far off then, and ICE will have shifted in people鈥檚 mind as 鈥渙ld鈥 technology rather than mHev鈥檚 being seen as 鈥淣ew鈥 tech they will seem a little out of date.

What will matter is what you can buy a new 200m (genuine - say 250m summer) range EV for. If they are still 35-40k then I see used ones at 25k ish, but if a few manufacturers (not just Mg say) have them down in the low 拢20k鈥檚 then used ones will be more 15k.

So I don鈥檛 think the value should will depend on supply of used ev鈥檚, I think it will depend on what the equivalent one costs new.... Remember some of the Korean stuff will still have 4 years warranty at that point, so still a very safe buy.
 

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What will matter is what you can buy a new 200m (genuine - say 250m summer) range EV for. If they are still 35-40k then I see used ones at 25k ish, but if a few manufacturers (not just Mg say) have them down in the low 拢20k鈥檚 then used ones will be more 15k.
That assumes you've got a buyer who is going out looking for an EV and is choosing between new or used. And that is probably the case in the current private car market, where volumes are small and EVs are being sold to innovators and early adopters. But as the market grows the customer types and attitudes will shift, bit like this BIK tax cut, it took a change to the financial benefits to shift company car drivers towards EVs, a company car driver needs a car and an EV was always an option but until the BIK tax cut it wasn't attractive to many. A lot of company car drivers haven't chosen an EV because they've become EV enthusiasts, they followed the money.

So I don鈥檛 think the value should will depend on supply of used ev鈥檚, I think it will depend on what the equivalent one costs new.... Remember some of the Korean stuff will still have 4 years warranty at that point, so still a very safe buy.
That's only if the buyer is set on getting an EV. As the market grows, the typical used EV buyer won't be an EV enthusiast, it will be someone looking for a used car, any used car, so they will be comparing against ICE, so the premium over ICE will be a big factor. There will be an EV premium, but it won't be as much as today. If a used ICE Kona starts at 拢10k, while the electric one starts at 拢22k, I can't see dealers shifting many electric ones at that kind of premium and all those used EVs hitting the market will need selling, they need new homes.

It's already happening with some of the PHEVs, list prices up at 拢30k when brand new, selling at 3 years for easily under 拢15k, some down at around 拢12k.
 

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Yes but 50% after 3 years is about the same as ICE.

Actually the price of used cars is set as I say... based on a filter down from new price. So when the Fiesta went up by nearly 拢2000 in a couple of weeks (just before December) used fiesta went up in direct proportion... so a year old one went up by about 1500, a 3 year old one by 1000 and so on.....

People buying used up to 3 years old tend to see what they like new and then buy a used one of those......

Once you get into 8-9 year old cars, people are less focused on the make / model and more "size of a golf" rather than "a golf 2.0 GTD in blue"..... these are the people who won't always see the benefit in EV as its all about the purchase cost.

But a buyer of a 3yr old car - they will buy them if the dealers educate them of the benefits..... most dealers can't be bothered, and will just sell them what they want to buy
 

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As EV's become more prevalent those who 'may' have considered one will be looking for good used EV's where the initial depreciation hit has been taken. Normal purchases is usually based on is the car suitable for what they use it for, ie size, luggage flexibility, economy. Now this is where an EV really starts to affect the buying decision, my estimated saving now represent a certain percentage of the vehicle cost, that percentage benefit increases with the depreciation of the EV, so the economy part of the buying decision process takes greater emphasis.
 
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