Company car advice

[EasilyVexed]

Hi,

I appreciate this may seem trivial but a question I was hoping may be answered nonetheless.

I have a list of options for a new company car and it is exclusively weighted towards electric vehicles. The range of fossil fuel burning vehicles varies in cost between £22k-£32k, and the electric options vary in cost between £35k-£55k. With this discrepancy in cost comes quality, prestige etc…

Due to conditions at my current address, I have no feasible way of charging an electric vehicle at home. If I were to take an electric vehicle, I would only have the option of public charging. This would cost more per mile than my company is prepared to remunerate.

The company’s remuneration scheme is reasonably generous. Someone who can charge exclusively at home can actually make money.

The list of vehicles available is not specific to me and anyone in my salary band has exactly the same choices. It feels like I’m being pushed towards a ‘lesser’ benefit than my contemporaries purely due to my living arrangements.

Is there discrimination in level of benefit being offered?

I have two options as I see it - Either pay out of my own pocket for business mileage in an electric vehicle or take a diesel car worth considerably less.

Thank you in advance for any constructive answers/advice.

[chrisch77]

First world problem?

You have a choice so work out what works best for you, but bare in mind this is probably the last time you will get a choice of an ICE car on your company scheme. It is not any form of discrimination, it’s more likely your company recognising its own corporate responsibilities and deciding that funding employees to drive flash V8 AMGs (or similar) doesn’t reflect well on the company.

[Jamescrs]

I don't see how you can claim the company is discriminating against you because of your choice of living arrangements which as you state is not suitable for home charging of an EV.

You could try raising the issue with your company but if they stick to their position then that's it as far as I can see, take it or leave it.

As someone above said, first world problems.

[Boringvolvodriver]

Is it worth a call to the fleet manager and/or HR to explain your position? If you don’t ask them then you will never know if they might be prepared to do something. Maybe try the potential effect on the company of you being late to meetings if you can’t get to a public charger?

They will be getting tax benefits for going down the electric route so will want to do that.

You will, I think, pay less BIK on an electric car which will go some way to offset the additional cost of public charging i suspect.

[BlueJ]

You're over-thinking it OP. It is not the company's job to take into account the living arrangements of all of its employees when structuring its company car offering. This is not discrimination, it's just circumstances.

You may have to pay a contribution to recharging costs if you take the EV, but I'm sure you will be paying way less BIK than an ICE company car and still be much better off. You say the company reimbursement is quite generous - how much can your contribution really amount to - I suspect not a lot per mile.

[JQ]

EasilyVexed said:

Hi,

I appreciate this may seem trivial but a question I was hoping may be answered nonetheless.

I have a list of options for a new company car and it is exclusively weighted towards electric vehicles. The range of fossil fuel burning vehicles varies in cost between £22k-£32k, and the electric options vary in cost between £35k-£55k. With this discrepancy in cost comes quality, prestige etc…

Due to conditions at my current address, I have no feasible way of charging an electric vehicle at home. If I were to take an electric vehicle, I would only have the option of public charging. This would cost more per mile than my company is prepared to remunerate.

The company’s remuneration scheme is reasonably generous. Someone who can charge exclusively at home can actually make money.

The list of vehicles available is not specific to me and anyone in my salary band has exactly the same choices. It feels like I’m being pushed towards a ‘lesser’ benefit than my contemporaries purely due to my living arrangements.

Is there discrimination in level of benefit being offered?

I have two options as I see it - Either pay out of my own pocket for business mileage in an electric vehicle or take a diesel car worth considerably less.

Thank you in advance for any constructive answers/advice.

You need to work out your total costs based on your circumstances, ultimately it will likely depend on how many company miles you do . After 15 years of taking the cash allowance rather than a company car due to the Benefit in Kind (BIK) taxation, I've finally returned to a company car as the BIK is soooo low on electric vehicles.

I'm now paying £50pcm BIK as opposed to the £500pcm I would have been paying on an equivalent ICE car.

You need to work out the difference in BIK between the ICE car and the electric car and whether that offsets the additional costs of charging. This is a good place to start - https://comcar.co.uk/companycar/tax/select/

However, there is no way on planet earth I would dream of owning an electric car without the ability to charge at home, it would be an absolute pain.

. . . and no, you are not being discriminated against.

[Sheepshanks]

How do the lease costs of the cars compare? The dearer EVs may not cost the company more.

If you get a, say, £45K ICE vehicle, it’s BIK will be horrendous.

[alscar]

You aren’t being discriminated against.
Your company is simply offering you a choice.
Do you use the car for business purposes ?
If you don’t like either option can you ask for the cash allowance instead and choose what you want ?

[Sheepshanks]

BlueJ said:

You're over-thinking it OP. It is not the company's job to take into account the living arrangements of all of its employees when structuring its company car offering. This is not discrimination, it's just circumstances.

I wonder how long it will be before it’s determined that black, disabled, female etc etc people are less likely to have access to home charging than people who don’t fall into any protected group?

[7 5 7]

Do they not offer a car allowance, and you can run whatever you want, fits your needs better?

[66HFM]

Is this not why employees were getting hybrids as you benefited from reduced BIK, although not necessarily as much as a full EV, with the majority not bothering to charge it...?

[ThingsBehindTheSun]

66HFM said:

Is this not why employees were getting hybrids as you benefited from reduced BIK, although not necessarily as much as a full EV, with the majority not bothering to charge it...?

Spot on, a few years ago all the directors at my company got Mitsubishi Outlanders. I bet the charging cables were still in the shrink wrap when they went back. I think they went for a Volvo equivalent next time.

Non directors ended up getting the Mazda hybrids.

All for the BIK.

[JQ]

66HFM said:

Is this not why employees were getting hybrids as you benefited from reduced BIK, although not necessarily as much as a full EV, with the majority not bothering to charge it...?

Definitely a lot cheaper than an ICE.

At a quick glance BIK Rates:

BMW iX1 £46pcm EV
BMW 330e £125pcm Hybrid
BMW 320i £452pcm ICE

[JD]

Just pick an 8% BIK PHEV from the list and never charge it.

That's what most people do!

The only options aren't just EV or Diesel are they.

[ZX10R NIN]

It reeally is a non issue just pick the nicest PHEV on the list.

[Tomo1971]

How far are you from a open to all Tesla location? Cheap per k/w

Can you charge at work?

The EV community is quite friendly and you may find someone local that will allow you to charge once or twice a week on their charger at cost plus a couple of beers?

Some other networks are cheaper per k/w if you get a subscription that will make the cost per mile around the same as petrol.

Remember the considerable savings in BIK EV vs ICE that would offset some of the additional charge costs.