For businesses considering a shift to electric vans, the price tag is only part of the story. While upfront costs can be higher than diesel or petrol counterparts, the long-term economics often tell a different tale. To make informed decisions, companies need to evaluate the total cost of ownership (TCO)—a holistic measure of financial impact over the vehicle’s lifecycle. Here’s how businesses can effectively assess TCO for electric vans.
1. Start with Acquisition Costs
The purchase or lease price of an electric van is the most obvious cost. However, businesses should also factor in available government grants, tax incentives, and potential discounts from manufacturers. These can significantly offset initial expenses, narrowing the gap with traditional vehicles.
2. Factor in Energy Costs
Electricity is generally cheaper per mile than diesel or petrol. To assess this, businesses should calculate charging costs based on expected mileage, charging frequency, and whether charging will occur on-site (at lower commercial rates) or on public networks (which may be more expensive).
3. Include Infrastructure Investments
Installing charging points is often a necessary upfront investment. The cost depends on fleet size, location, and power capacity upgrades. While infrastructure may seem costly, it supports long-term savings and operational reliability.
4. Evaluate Maintenance Savings
One of the biggest advantages of electric vans is reduced maintenance. With fewer moving parts, no oil changes, and less brake wear due to regenerative braking, servicing costs are typically lower than for combustion engines. Over several years, this can represent substantial savings.
5. Consider Residual Value
Resale value is evolving as the used EV market matures. Companies should monitor depreciation rates for electric vans compared to diesel models. A stronger resale market can improve overall TCO.
6. Account for Operational Benefits
Electric vans often benefit from lower road taxes, exemptions from congestion charges, and access to clean-air zones. Additionally, businesses may gain reputational value from showcasing sustainability commitments, which can indirectly enhance competitiveness.
7. Use Fleet-Specific Modeling Tools
Specialized TCO calculators and fleet management tools can help businesses model different scenarios, incorporating mileage patterns, charging infrastructure, and local energy tariffs. Data-driven analysis ensures decisions are grounded in realistic projections.
Conclusion
Assessing the total cost of ownership for electric vans goes beyond purchase price—it requires a detailed look at energy, maintenance, infrastructure, and operational factors. Businesses that take a lifecycle view will not only uncover potential savings but also strengthen their sustainability credentials, making the switch to electric a strategic advantage rather than just a cost decision.
If you are a professional looking for a car that matches your lifestyle and business needs? Whether it’s for business lease or personal lease, Charlie at Car Lease 4 U is ready to help you find your perfect vehicle.
Give Charlie a call today on 0287 122 8822 to discuss your car leasing options and get a quote for your next car lease.