April 17, 2024

Cost-Effective Solutions: How Hybrid Cars Benefit Small Businesses

Man refueling hybrid car

Vehicle fleets are often highly necessary provisions for businesses, whether fast-growing new enterprises, regional trade businesses or steady-running corporate organisations. They are crucial for enabling employees to meet their work commitments, whether by attending to clients, winning new clients or networking with other organisations.

While a fleet of vehicles or robust company car programme imbues undeniable benefits to businesses, there are undeniable costs involved in their implementation. This is especially true for small businesses, who are facing a unique financial challenge in a year already defined by recession conditions. The hybrid electric vehicle, though, could be a solid answer to the question of affordability in the corporate travel conversation.

Reduced Fuel Expenses

Hybrid electric vehicles are excellent candidates for fleet vehicles or company cars, simply due to the direct cost savings they enable via fuel. Hybrid vehicles are, of course, associated with high fuel efficiency and lower fuel consumption compared to traditional ‘gas-guzzlers’. While hybrids still possess an internal combustion engine, hence using petrol or diesel, the electric motor assistance can bring fuel efficiency up to 60 mpg average.

Lower Operating and Maintenance Costs

Not only are hybrid vehicles cheaper to fuel, but they can also be cheaper to run. Electric motors are less complex than conventional engines, which makes fully-electric vehicles much simpler to maintain; hybrid vehicles do not benefit in this way, possessing both types of motor, but do enjoy better-designed drivetrains and better-engineered parts elsewhere. The reduced strain on the engine also makes the vehicle more likely to last longer, with less wear extending the life of its moving parts.

Tax Incentives

Hybrid cars are a natural choice for lower fuelling and running costs, but can also allow businesses to save money in an entirely different way. The corporate ownership and usage of electric and hybrid vehicles is actively incentivised by the UK government, owing to the eco-friendly credentials they possess.

As such, unique tax breaks are afforded to businesses that use them, whereby a business can claim the full value of each vehicle against their taxable profits in the first year of ownership. Hybrid cars incur less Business-In-Kind Tax (BIK) on account of their lower emissions.

Environmental Benefits and Corporate Responsibility

The final, and perhaps most important, piece of the puzzle with regard to hybrid vehicles relates directly to their green credentials. There are key environmental advantages to switching to a hybrid fleet, which go not only to the betterment of air pollution in built-up environments but also the importance of corporate social responsibility for small businesses.

Doing one’s part against climate change is an ethical position, and one to which businesses are proportionally expected to commit. Environmental, Social and Governance policy is designed to give businesses the frameworks through which to address their impacts and reduce them equitably; a greener fleet meets some of these expectations, enabling a business to benefit from positive reputational shifts as well as financial savings.