We compare the new Diesel Ford Focus against the new Electric MG EV to see if switching to an electric car would financially benefit your business.
Things get off to a close start as both vehicles have a similar P11D value (RRP). The fully-electric MG EV is available from £25,495 and the Diesel Ford Focus starts at £25,339*. The MG EV possibly takes an edge; in fact it’s worth mentioning that the MG EV is the lowest priced electric car in the SUV category, and one of the lowest priced electric vehicles in the UK market.
Contract hire pricing
Things remain neck on neck on a 9+35 contact hire agreement, with the MG EV coming in at £257.50 per month and the Diesel Ford Focus coming in at £265.95 according to vicyoung.co.uk (an established car dealership of 40+ years).
Powered by a 44.5kWh lithium-ion battery, the zero-emission MG EV has a typical range of up to 163 miles on a single charge. Drivers can also have peace of mind knowing that the battery has a 7 year / 80,000 mile warranty. The MG ZS EV can be charged to 80% battery in as little as 40 minutes using a rapid charger, and 100% battery in 7 hours with a home charger.
The average cost per mile in an electric MG is approximately just £0.04p! The average cost per mile for a typical diesel vehicle is £0.14p. With an average saving of £0.10p per mile, the electric MG begins to pull away and take the lead in this financial race. Based on an annual mileage use of 10,000 miles, over 3 years the electric MG could save you in the region of £3,410 in fuel compared with diesel Ford Focus.
Peter Greene from the MG Electric Vehicle Owners Club said: “In 8 months my fuel costs have dropped to a quarter of what they were per mile. Regenerative braking means there is little brake wear and I anticipate servicing costs will be half.”
BIK / 1A National insurance
When it comes to saving money, the MG EV surges ahead with £0 benefit in kind and £0 1A national insurance. Compare this with the £3,204 BIK cost for a diesel Ford Focus over 3 years, and £1,049 for 1A national insurance, this is a potentially huge saving of £4,430 for businesses.
Over 3 years the running cost of a diesel Ford Focus is going to cost you in the region of £8,863, based on a 3 year, 10K annual mileage contract hire agreement. Whereas over that same period, the Electric MG ZS has running costs of just £1,020!
Understandably, electric vehicles won’t suit all businesses or organisations. Many cite “range anxiety” as their biggest concern. Ben Silverstone from the MG Electric Vehicle Owners Club said: “The amount I save on fuel costs pays for the monthly finance and any public charging I need to do. I don't have range anxiety and I routinely do a 500 mile round trip (twice a month) in the car. I chopped in a diesel Passat R-line and I haven't looked back.”
Vic Young, Managing Director of the Vic Young MG dealership - the number one independent MG dealer in the country said: “Over the past 6 months we’ve seen a huge increase in demand for electric MG. It’s been so popular they’ve sold as quickly as they’ve come in. Customers can see how much money they can save themselves whilst doing their part for the environment.”
Whilst electric vehicles are not suitable for all, it is clear in these challenging times, switching just one of your business vehicles to an electric MG car could save your business up to £7,063 over 3 years. For some businesses who may be ready to switch one or more vehicles, the potential savings are massive.
Press release distributed by Pressat on behalf of Vic Young Ltd, on Wednesday 19 August, 2020. For more information subscribe and follow https://pressat.co.uk/