Can You Get Asset Finance For Electric Vehicles?

Over the last few years, advances in electric vehicle (EV) technology have progressed to the stage where it is now viable for many businesses to make the switch. Extended battery life, improved efficiency and enhanced performance mean that the use of commercial EVs has increased dramatically with numbers set to continue rising.

Ensuring your business operations are as green as possible has never been more important with the current climate emergency.

While we all assess how we can improve our green credentials, investing in commercial EVs represents an excellent opportunity for any business whose model involves regular driving.

With their increased popularity, electric car finance packages have become the norm. Many cover costs associated with charging point installation, as well as EVs themselves.

Over the last few years, advances in electric vehicle (EV) technology have progressed to the stage where it is now viable for many businesses to make the switch. Extended battery life, improved efficiency and enhanced performance mean that the use of commercial EVs has increased dramatically with numbers set to continue rising.

Ensuring your business operations are as green as possible has never been more important with the current climate emergency.

While we all assess how we can improve our green credentials, investing in commercial EVs represents an excellent opportunity for any business whose model involves regular driving.

With their increased popularity, electric car finance packages have become the norm. Many cover costs associated with charging point installation, as well as EVs themselves.

Why Use Asset Finance?

Asset finance is an excellent electric car finance solution aimed at any business looking to add to, update or improve their fleet. Whether that is purchasing a new electric car for business or a new electric van for deliveries, asset finance helps facilitate those purchases that ultimately lead to growth.

It works by spreading the cost of fixed assets over an agreed time period. For example, you could split the cost of a new van into 12 equal payments and repay your lender over a year.

Asset finance is actually an umbrella term for more specific solutions such as hire purchase agreements and finance leasing, both of which can be used to purchase EVs.

Under a hire purchase agreement, your provider will supply the EV and agree a payment plan with you. While the vehicle is being paid off, it is still owned by the provider. When the finance term ends, you will have the option to purchase the EV outright.

Finance leasing also allows you to use a new vehicle while paying it off. Finance leases are often set up over longer periods of time (up to 5 years) and while the lender still owns the vehicle, you will be responsible for maintaining and insuring it.

Benefits of Asset Finance For Electric Vehicles

There are plenty of benefits associated with investing in commercial electric vehicles. From their environmental impact to saving costs, some of the most important include:

  • Reduced environmental impact – the main benefit of switching to EVs is the impact they have on the environment, EVs emit 28% – 81% less C02 than ones that run on petrol or diesel
  • Improved safety – testing has shown that due to an EV’s lower centre of gravity, they are less likely to roll. They also come with a lower risk of fire and explosion in the event of an accident
  • Better air quality – the removal of exhaust fumes means better air quality for everyone
  • Less noise pollution – EVs are almost silent
  • Increasing range – although electric vans currently come with a lower range than electric cars, they are increasing all the time
  • Cheap to run – on average, an EV costs £4 to travel 100 miles
  • Total costs reducing – although EVs are more expensive than their diesel counterparts, the total cost of purchasing one is falling each year

 

Asset Finance From White Oak

Providing support to SMEs through a range of financial solutions is key to the White Oak philosophy. As we look to expand our team in the wake of the pandemic, focus is being placed on widening our asset finance offerings even further.

You can read more about our expanding team and the role asset finance has to play in White Oak’s future in another recent article.

As an FCA authorised and regulated European lending platform, we’re proud to offer solutions ranging from £25k up to £2m that can be repaid anywhere between 12 & 60 months.

Speak to our specialist asset finance team to discuss your business needs and start the process of upgrading your fleet by applying for funding today.

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If you are looking to find the right finance for your business, contact us today.

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