A recently published study which was conducted in UK by Bank of America Merrill Lynch (BAML) has again endorsed what we have been saying all along that the ‘Total Cost of Ownership’ of a electric vehicle (EV) over a period of 3 years is much cheaper than fossil competitors.
The name of the report was clear enough: “Why your next company car is probably electric.” Some of the key conclusions for people buying company cars, once coming changes to UK incentives for EVs are implemented:
- A Tesla Model 3 will save you several thousand British pounds over 3 years compared to a fully petrol-powered BMW 3 Series or even a BMW 3 Series PHEV.
- An Audi e-tron will save you several thousand British pounds over 3 years compared to a diesel-powered Audi Q5.
- A Nissan LEAF will save you several thousand British pounds over 3 years compared to a petrol-powered Ford Focus.
Here’s BAML’s way of summarizing those findings in one line: “UK tax changes make EV company cars exempt from tax to employees from 2020; combustion engine cars to cost 15–22x more vs EVs.”
The Bank of America Merrill Lynch analysts also ran some “fleet” (high-mileage) scenarios. The summary finding: “for fleet use case (20k miles per year), EVs are 12–32% cheaper than ICE alternatives.
Stay tuned — 2020 should be a wild ride 😉
Reference- Bank of America Merrill Lynch Report, Clean Technica,