How to start your electric journey

The New Zealand Government is planning greater regulatory and legislative support, following the lead of many other countries which have introduced incentives for EV adoption – all seeking a mix of improved air quality, reduced emissions and less dependency on oil.

Local planning has already started with the recently proposed Clean Car Standard, and Clean Car Discount released for discussion and feedback in August 2019.

In New Zealand, EVs will become more appealing to fleet managers and consumers as make/model availability grows and charging infrastructure reach increases. This will see EV purchase prices coming down, and the benefits of cheaper running costs and lower emissions will become more compelling.

Here are five considerations if you are thinking about a transition of all, or part of your fleet to either EV, PHEV or Hybrid.

1.  What do you need to know about your staff?

Firstly you need to understand which cars are allocated as a tool of trade versus pool vehicles as tool of trade will require a lot more engagement. Diving deeper into the detail, you also need to understand the employee role type and role location, the distance typically travelled and why they need a vehicle in the first place not to mention how they are being used. Are all your pool vehicles being used at the same time, are there some that are not being used at all and could a car-share be a better option.

The other part of this is of course the employee mindset. Forcing electric vehicles on unwilling staff is a recipe for disaster. A company vehicle for some people is still regarded as a status symbol and the last thing you want, is for good people to leave.

The way that you acquire your vehicles will affect how agile you can be. Do you really need to own your vehicles? Could the cash needed to buy, be better spent in areas that generate more income? If you are already leasing, are your vehicles expiring in the next six - 12 months? Can you leverage that expiry to transition early? Etc.

2.  Choosing the right vehicle.

The range of EV’s in the market is growing and will continue to do so over the coming years. This will make it all the more important for businesses to access various sources to make sure they end up with electric vehicles that suit their needs (EECA’s website is a great source of advice as a starter – www.electricvehicles.govt.nz). To better understand how your vehicles are being used, you could use GPS data but if don’t have this, you should at least do some calculations based on odometer readings versus vehicle manufacturer range specifications. If the vehicle can’t do the required range and if you can’t get access to public charging infrastructure in the area, then an EV won’t be the right option. Finally, get out there and test drive as many as possible. Have manufacturers provide as much information on the types of vehicles they have including technology, features and benefits.

3.  Pool Vehicle or Trade of Tool

When you introduce EV’s you are introducing change and that can be tough. While it is easier to transition pool vehicles to electric, it can take people time to understand the opportunity which is why test driving is critical. More often than not, as soon as they drive one, the coversion is over.

4. What about charging?

Vehicle selection is the fun part, but sorting out charging infrastructure is something else all together. The cost to put in chargers can vary massively according to the site. Every site will have a different power provision to it. What capacity do you have on your power board? How far is it from the board to the carpark you want to provision? Are you putting in AC or DC three phase? Making sure you answer these questions can be the difference of spending a few hundred dollars, to thousands of dollars. If you allow staff to take them home, you’ll need to sort out who pays the bill, not only for the power used, but potentially to install a specialised charger. Health and safety is another consideration as well as if that person has offstreet parking – it may not be viable if they live in an apartment .
And what happens when the employee finishes at the company? Do you rip it all out?

5. How do the numbers stack up?

If you are just starting your journey, there is no way around it – it’s going to cost you more upfront to buy a new EV than its fuel equivalent. The fact is that you don’t have to buy them. Leasing may be a better option. To find out for sure, a lease company can complete an indepth, whole-of-life financial model, taking into consideration key components such as operating lease terms and run rate costs; potential break fees; FBT implications; the price of electricity versus fuel; and predicted cost of setting up charging infrastructure in year one. When you do the maths, there are pluses and minuses. You may pay more for an EV, but less for it’s fuel and maintenance, but to make the right decision, you will need as much data as possible to do it with.

At the end of the day, if you are considering a transition to EV, this is a great opportunity to review your current fleet and rationalise vehicle numbers, costs and usage.

 Click HERE for more information or talk to FleetPartners today about a solution that best suits your needs. 
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