There are numerous financing options and routes available for startups and small businesses. The viable options will differ from business to business but here we look at asset finance.
Depending on the type of business you may need to acquire transport. However before you do that you need to make yourself aware of the government grant that is available to help you buy low emission vehicles.
Electric vans are the future
It’s been estimated that a small electric van will typically cost £100 less in fuel for every thousand miles driven compared to a diesel equivalent, also makes business sense.
Grants up to 20% of the cost of the van are available.
Electric vans – with a maximum mass of up to 3.5 tonnes, in vehicle category N1 continue to qualify for a grant of up to 20% off the cost of the van, up to a maximum of £8,000. The grant is available until 5000 vans have been ordered. The grant is currently eligible for both plug-in hybrid vans and fully electric vans.
Therefore to be eligible for the plug-in van grant, vans must have tailpipe emissions of 75g CO₂/km or less. Plus achieve a zero-emission range of 10 miles for plug-in hybrid vans and 60 miles for fully electric vans.
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Furthermore not all vehicles are ultra-low emission. Eligible vehicles must meet the criteria for the plug-in van grant, including CO₂ emissions and zero emission range.
|Category||CO2 emissions||Zero emission range||Grant||Maximum grant|
|Vans||Under 75g/km||At least 10 miles||20% of cost||£8,000|
So what does this mean
- Category – grant not eligible for second-hand vehicles, or category 2 or 3 vehicles with a recommended retail price of £60,000 and over.
- Emissions – ‘zero emission range’ is the distance the vehicle can travel without producing any CO2 emissions.
- Grant – ‘cost’ is the full purchase price you pay for the basic vehicle – including number plates, vehicle excise duty, and VAT. It doesn’t include delivery charges, the first registration fee or any optional extras.
In conclusion, the dealership will complete the paperwork and deduct the grant on completion. There are no application forms just a short questionnaire.
Planning a fleet
Take advantage of our free fleet costing template.