Cost of purchasing and using a combustion and electric vehicle

February 13, 2020 Interesting facts

The share of electric cars in the company fleets in Poland remains marginal. However, the ecological arguments are not sufficient to change this. The key to the development of company electromobility is the criterion of economic viability. From the report "Electromobility in Poland. The "Development prospects, opportunities and threats" comparison of the costs of purchase and use of a combustion engine and an electric car shows that the lack of excise duty alone is far too little. It is only with a VAT exemption that the company pays for the purchase of an EV vehicle.

- The challenge we face in the process of developing electromobility in Poland is to create the conditions to stimulate the market and create demand for electric cars. However, environmental arguments, e.g. for improving air quality in cities, are not sufficient. Electromobility must simply pay off for the company. Today, the cost of purchasing an electric car is even twice as high as that of a conventional car. A system of incentives is therefore necessary to increase interest in purchasing this type of car. To show the impact of the possible introduction of direct subsidies for the purchase of electric cars, we have developed a comparison of the costs of purchasing and using a combustion engine vehicle with an electric car. The results of our analysis clearly indicate that the greatest benefits of using an EV vehicle compared to ICE are possible thanks to the reduction of its price," said Radosław Woźniak, EFL Vice-President.

Expert comment:

The results of our comparison of the costs of purchasing and operating a combustion vehicle and an electric vehicle clearly show that only a reduction in the price of an electric vehicle can induce a company to purchase it. What's more, the excise duty exemption alone is not enough. This can be clearly seen when comparing vehicles financed by loan or classic leasing, where the cost of purchasing and using EV for 3 years is more than a quarter higher than an ICE vehicle. Only with the exemption from VAT will electromobility be a similar expense as a traditional drive.

Electric car

It is worth adding, however, that tax reduction is not the only possible idea to reduce the EV price. A similar effect can be achieved through government direct payments, as is the case in France, where subsidies amount to EUR 6 000. We, too, as a company financing investments, are closely following the government's actions and preparing to create an offer dedicated to customers interested in purchasing or using electric vehicles.

Significant role of financial instruments in implementing the electromobility plan

In the case of companies, financing the purchase of an electric car, as is the case with a traditional drive, for cash will either be impossible or will simply be less profitable. Therefore, the government in cooperation
With financial institutions should also focus on education on how to finance and purchase electric vehicles, EFL, as one of the market leaders, has been financing alternative vehicles since 2004. The first car financed by the company was a Toyota PRIUS hybrid. EFL had leased almost 600 hybrid cars by 2017. EFL is also a leader when it comes to financing TESLI car leasing. From 2014 he financed the purchase of 20 Tesla S and 8 Tesla X models.

February 13, 2020 Interesting facts