Looking after our environment is becoming an ever-growing global concern. The UK Government has even brought forward their ban on new petrol, diesel, and hybrid cars to 2035. Making Electric car finance even more popular.
Lincoln Finance now offer electric car finance for most EV cars.
There are many positives to financing an electric vehicle:
They are very cheap to run
There is no tax payable on electric vehicles under £40,000
They are very cheap to maintain
They produce no emissions and are 100% environmentally friendly
Cost of Fuel compared to a conventional car…
If we use a Nissan leaf as an example, this car takes around 6 hours to charge. So, assuming your energy tariff at home charges 14 pence per kilowatt per hour, then this car costs £5.60 every 140 miles. This comes to 4.1 pence per mile.
Compare that to a conventional car and you are saving 10.1 pence per mile. We’d call that a pretty good saving!
There is also a Government electric car grant which is called the Electric Vehicle Homecharge Scheme (EVHS) which contributes up to 75% towards the cost of buying and installing an electric charger at home. This is up to a maximum of £500. This scheme only applies if you have a home with off-street parking suitable for an electric vehicle car charger.
Funding your new electric car through a Limited company…
There are currently some significant incentives to fund your new electric car through a limited company for both the business and employees on a company car scheme. All brand-new electric vehicles are deemed eligible to get full company Corporation Tax relief. There are two ways to get an electric vehicle through the company:
Outright purchase: first year, you will get full capital allowances on the vehicle (currently 19%), so if the vehicle costs you £100,000, you would be eligible for £19,000 tax relief. This is still the case if you opt for a Hire PurchaseAgreement.
Lease the vehicle: (Finance Lease or Operating Lease): via this route, you get Corporation Tax relief on the rentals, as and when they are paid, plus you can claim back 50% of the VAT back.
Company car vehicles…
Employees can currently benefit from low BIK (benefit in kind) charges having an electric car as their chosen company vehicle.
For all fully electric cars on sale in the UK at present, the BIK rate is just 1% during the 2021/22 financial year. It'll rise to 2% for 2022/23, remaining there during 2023/24 and 2024/25.
(Please seek independent advice before entering any agreement).
There’s never been a better time to fund your electric vehicle so please get in touch should you have any opportunities we can assist you with!
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What we do
As well established asset finance brokers, we are able to deliver the very best funding options available in today's highly competitive and challenging marketplace.
With over 20 years experience in asset based finance, our specialist knowledge and passion to deliver the most appropriate and competitive funding solutions, places us at the forefront of any hire purchase and PCP considered by our clients.
If you have never had finance before and you are not sure about how it works, don't worry, you will have a dedicated account manager who will guide you through the process.
Yes, Lincoln Finance are full authorised and regulated by the Financial Conduct Authority (FCA) - registration no. 717074. We are also fully members of the National Association of Commercial Finance Brokers and adhere to their strict code of conduct.
Lincoln Finance Ltd are registered on the Information Commissioner's Office (ICO) - Data Protection Register no. Z9301046 Please click on the link below to view our full GDPR and Data Protection Information
We can assist with regulated and non regulated finance products. These include:- Hire Purchase, Lease Purchase, Finance Lease, Contract Hire, PCP, PCH, Operating Lease, Refinance, Commercial Loans, Chattels mortgages, Marine Mortgages.
Traditionally, assets suitable for finance should satisfy 3 main criteria:- 1) Be moveable 2) Be easily identifiable 3) Have a residual value Having said that, the list of assets we can fund is vast, growing and can often stretch outside the boundaries of the above criteria. We would always suggest that if you have a specific enquiry to speak directly with us over the phone to see if we can help.
Yes, these are normally written on Sale & HP Back or Sale & Lease Back documentation.
Improve cash flow and spread the cost of a capital purchase
Preserve cash reserves and explore growth opportunities for your business