How leasing a van can help businesses increase sustainability

November 10th, 2023

We are all focusing more on how our businesses impact the environment. While most businesses are now paperless, many of us are looking for other ways to reduce our carbon footprint – without breaking the bank. In this blog post, we will talk you through how leasing a van can help your business increase sustainability, the incentives available to you, and how business van leasing can save you money.

Environmental Impact

Traditional combustion engine vehicles have long been the only option for businesses that need avan. These vehicles release harmful C02 and N02 emissions, contributing to poor air quality in cities and to climate change.

Older vehicles release more of these harmful emissions and are often less fuel efficient. New vehicles are now built to adhere to Euro 6 diesel and Euro 4 petrol emissions standards and are therefore much less polluting.

Many major cities have introduced Clean Air Zones (CAZ) to reduce the levels of pollution within built up areas. Owners of more polluting vehicles are charged for entering these areas to encourage the move to cleaner engines.

How to Increase Sustainability

Leasing a van is a great way to ensure that your vehicle adheres to the European emissions standards. Meaning not only will you not be charged on entering these Clean Air Zones but you’ll be able to upgrade your vehicle or fleet to keep in line with the latest emissions standards.

Sustainable fleet management is simpler than it sounds. If you have a fleet of vehicles acquired through business van leasing, you will be able to renew these vehicles every 2-5 years. Your leasing company will be able to arrange new vehicles that adhere to the very latest European Emissions Standards, so you can stay ahead of the game.

If you’re ready to make the transition to electric vehicles, it can seem like daunting task. Your leasing company can ensure that you are leasing a van that is suitable for your business needs, and ensure you have everything in place (e.g. wall chargers in you place of business) to keep your business running smoothly.

Electric vans can help you to further increase the sustainability of your fleet by allowing you to completely eliminate carbon emissions if the vans are all-electric. There are even additional benefits for businesses such as reduced running costs and other financial savings like the road tax exemption.

Benefits for Businesses

We may seem biased, but leasing a van is actually much more cost-effective than buying. You won’t need to pay out a chunk of capital upfront, but instead spread the cost of your lease across an agreed term. Benefitting from a Manufacturer’s Warranty for up to 5 years, beneficial VAT treatment, and the flexibility to keep, upgrade, or have your vehicles collected at the end of your lease.

Business van leasing may be great for sustainability, but if your business is city based, leasing European Emissions Standard compliant vehicles can also save you thousands of pounds a year in clean air zone charges. London’s ULEZ (Ultra Low Emissions Zone) currently charges non-compliant vehicles £12.50 a day to drive through the zone… Avoiding these charges with an Electric or Euro Emissions compliant van can save your business a fortune.

Whether or not your business’s brand puts a focus on sustainability, an electric vehicle will do wonders for your green credentials. As more and more consumers and potential customers pay attention to the environmental impact of where they spend their money – having an electric vehicle or fleet will prove your business to be environmentally conscious.

Ready to go Electric?

Electric vans can appear expensive but looking at the whole life cost of the vehicle, you will see that leasing an electric van can be very cost effective.

Fewer moving parts, and a Manufacturer’s Warranty on both the vehicle and its battery, mean that with an EV there are fewer unexpected maintenance costs (which can mount up, especially if you run a fleet).

It is also important to note that the cost of charging an EV is much lower than filling the tank of a diesel van. Many energy companies offer specific plans to make sure that you get a great rate if you’re charging your electric vehicle at home or at your place of business.

Government Incentives for EVs

The government has put in place a number of incentives to help businesses to transition to electric vehicles and help you move towards a more sustainable fleet. If you’re considering the sustainability of your fleet and looking to leasing an electric van, it’s important to make sure you’re aware of all of the government assistance available to your business.

The Plug-In Vehicle Grant offers £2,500 towards the cost of a small electric van, and £5,000 towards the cost of a large electric van. Massively reducing the cost of your monthly payments when leasing the vehicle.

The Workplace Charging Scheme covers up to 75% of the cost of purchase and installation of EV charging points at commercial properties. Meaning you will be able to charge your vehicle or fleet whenever you need to. Further allowing you to take advantage of the great rates available from energy companies, specifically for electric vehicle charging.

Due to the ULEZ expansion in London, businesses with an address within the zone will be able to apply for a Scrappage Grant. This means that Small Businesses, Micro Businesses and Sole Traders can receive a grant payment of £7,000 to scrap their old non-compliant van – allowing them to upgrade to a Euro 6 compliant or Electric vehicle. You can even apply for an exemption from ULEZ charges if you’re going to scrap your vehicle and you’re waiting for a new compliant vehicle!

How leasing a van can help businesses increase sustainability

Put simply, if you’re looking to increase your business’s sustainability, look into leasing a van or electrifying your fleet. You’ll be able to save money while ensuring your business isn’t contributing towards air pollution and demonstrate your commitment towards building your business’s green credentials.