While the purchase price of an electric or hybrid car may be higher, the potential savings in tax reductions and maintenance costs could outweigh the initial cost so that you will spend less over the course of ownership compared with a petrol or diesel equivalent.
Strong Residual Values and Lower Taxation
An electric or hybrid car may have a more expensive list price than a fuel-powered model, but it will likely be significantly cheaper to run, and therefore, less expensive over the period of ownership. It’s also worth noting that a fully electric car pays no road tax.
There are many parts to company car and fleet tax, and that can make it seem complicated. The Vehicle Excise Duty (otherwise known as road tax) is judged on a vehicle's CO2 emissions, and also electric range for plug-in hybrids. Electric vehicles – such as the Soul EV and e-Niro – are completely exempt from VED, while all hybrids will see a significantly reduced charge as well.
Electric cars offer considerable savings in BIK tax – in fact, you pay nothing for the first year. For someone in the 40% tax bracket, this could mean you save as much as £10,000 over three years compared with a similar, less powerful diesel vehicle. All hybrid powertrains also benefit from lower BIK tax rates, whether a mild-hybrid, self-charging hybrid, or plug-in hybrid.
Capital allowances also need to be considered. You can deduct some of the cost of the vehicle for your business from the profits before tax. The amount you can deduct is based on CO2 emissions. A fully electric car – such as e-Niro or Soul EV – is entitled to be fully deducted. In fact, all hybrid models included in the Kia Eco range will enjoy favourable tax rates because of their low CO2 emissions.
Reduced Maintenance and Running Costs
Whether you're a company car driver or a fleet manager, fuel can be a considerable cost over the course of ownership. On a mile-per-mile basis, an electric car is cheaper to run. Charging a Kia e-Niro costs around 4p per mile (Electricity tariffs will vary.) whilst a similar, less powerful diesel equivalent can be nearer 11p per mile. Plug-in hybrids enjoy the same benefits when run on battery power, too, while self-charging and mild hybrids powertrains have better fuel efficiency.
Insurance costs are also to be considered. There are many factors that affect insurance, including: value, repair costs, parts prices, performance, safety and more.
To help keep insurance costs low, Kia offers an incredible suite of safety features on all of its Eco cars. Depending on the model, you can expect features such as Blind-Spot Collision Warning, Rear Cross-Traffic Collision Warning and Forward Collision-Avoidance Assist, which all help to reduce the likelihood of an accident, and allow Kia cars to align with a more favourable insurance group.
Electric cars have far fewer moving parts than a traditional petrol or diesel engine, and therefore require less work when being serviced. Hybrid powertrains reduce engine strain, while regenerative braking decreases brake wear, which can prolong the life of parts.
Free entry into the Congestion Zones
Kia’s electric and plug-in hybrid cars do not have to pay the London Congestion Charge. For those who travel into the congestion zone daily, that represents a saving of almost £9,000 over three years. Other cities are also moving towards low emissions zones, so Kia’s Eco cars are a perfect way to prepare for the future.