Alternative fuel vehicles at record high

10 January 2020

Alternative fuel vehicles reached a massive milestone as they comprised 10% of new car registrations in 2019. This represents a continuation of the long-term trend towards low-emission cars. With more demand than ever for greener cars, we explore what’s driving this trend and explain how you can prepare to go green in 2020.


Cause #1 - the UK’s zero carbon future

The UK government’s commitment to a carbon neutral future relies heavily on its Road to Zero strategy. This plan aspires to a future where 50-70% of new car sales will be ultra-low emission by 2030. As everyone starts to realise that 2030 isn’t all that far away, more people are transitioning to electric and hybrid cars. And, with a number of time-sensitive financial incentives to go ultra-low on offer, there are solid fiscal reasons to make the change right now. As we explore in the next section.


Cause #2 - amazing time-restricted financial incentives

In the past, ULEVs (Ultra-Low Emission Vehicles) were known for being highly expensive and were generally the reserve of people with large bank balances. Today, it’s all change as many ULEVs have come down significantly in price making them highly competitive alternatives to fossil fueled cars. And there are lots of other financial savings on offer too:

  1. Lower whole of life cost - ULEV drivers are wise to the fact that they need to look beyond their new car’s price tag and consider whole of life cost, including fuel. Why? Because Tusker electric vehicle drivers can expect to save £750 per year on fuel thanks to more efficient cars and the low cost of electricity.
  2. Up to £3,500 off the car price - to incentivise the uptake of the lowest emission cars, the government is still offering grants towards the cost of any ULEV that emits less than 50g/km CO2 and can travel 75 miles or more using electricity alone. Take up a brand new car via Tusker and this reduction will be reflected in lower monthly deductions.
  3. Home charging grants - the government is here to help on this front too with grants towards the cost of installing a home charging point. Wait much longer and there’s a good chance that both these grants will have come to an end, making it more expensive to get behind the wheel of a ULEV.
  4. 0% benefit-in-kind rates - from April 2020, HMRC is reducing the tax payable on company cars and salary sacrifice car benefit - as long as they’re low emission. The best way to reduce the monthly amount for a new car? Go all-electric for a 0% benefit-in-kind tax rate.

Combined, these benefits all make a convincing financial case for going green.


Cause #3 - amazing new car technology

Brand new cars with bigger batteries and a much longer single-charge range mean electric vehicles and ULEVs are viable for a wide variety of lifestyles. In fact, many electric cars can now travel over 200 miles without needing to be plugged in. For the average UK driver, this is more than enough energy to cover multiple days’ journeys.

Evidence from hybrid drivers shows that many are struggling to spend more than £40 at the petrol pump and that they can average 96mpg by using the electric engine in place of fossil fuel.

Driving a ULEV isn’t all about saving the planet. Exciting new brands like Tesla are completely digital which means there’s a whole host of in-car tech on offer. Like the Car-aoke (karaoke to you and me) upgrade Tesla recently announced or the restaurants and destinations feature that can turn any old trip into something special.


Cause #4 - more people are concerned about the planet

Travel has the biggest single impact on our carbon footprint and for many of us, this means car journeys. As a result, electric vehicles represent a simple way to make a big dent in your CO2 emissions. It’s this thinking that’s driving many people to take a greener approach when choosing their next new vehicle.


Cause #5 - ULEVs are in high demand

As the uptake of alternative fuel vehicles continues to increase, Deloitte predicts an: “‘expectation gap’ between manufacturer capacity projections and demand from customers”. Think tank the Faraday Institution, also predicts an accelerated demand for EVs which: “means the UK will need to secure investment for a first of its kind 15GWh gigafactory to ensure a steady supply of batteries in the future.”
Think this all sounds like hype? 900 units of one of 2019’s hottest cars, the Kia E-Niro, were allocated to the UK in 2019. And they all sold in under a month according to Fleetworld.

These drivers for change are creating the conditions that have encouraged thousands of drivers to get behind the wheel of a band new, ultra-low emission car.


Secure a great deal on your next car

With everything to gain, it’s time to take up an electric or hybrid vehicle.

The most cost effective way to do this is to take one up via salary sacrifice or join your organisation’s car benefit scheme.

Ready to find out how cost effective a new ULEV can be? Take a look at the latest makes and models here.

Call us: 0333 400 2020

If you would like help placing an order or you are an existing driver.

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