When selecting commercial vehicles for your business, you may think about investing in a fleet of electric vehicles. Models like the Tesla Model S and Chevrolet Bolt have become pioneers in their industry. Local delivery businesses have been developing a growing interest in EVs as they offer a way to possibly lower operating costs while preparing their fleet for the future. For long-haulers, electric vehicle technology is still a ways away from creating semis and trucks that can run entirely on battery life. But for companies that operate within 100 to 300-mile radius, electric vehicles could be the best commercial cars on the market.
Why EVs Make Good Commercial Cars
Electric vehicles are more popular than ever for good reason. These optimized vehicles embrace the technology of the future. We know that one day, gasoline will become a rare commodity, and eventually, it will not be accessible for most. Clean energy, like wind and solar power, can generate electricity that can charge vehicles, which means investing in EVs now is likely a good investment for any business. Because they are already optimized for the future of energy, even if you are buying a used vehicle, EVs make excellent choices for long-term commercial vehicles. The downside is that they get less mileage than a gas fueled vehicle. Most EVs average 100 miles between charges, though some can make it 200 or 300 before needing to be plugged in.
Local Businesses Can Thrive on Electric
Electric cars have a more expensive upfront cost. An electric model typically runs around $10,000 more than the average gas-powered vehicle. However, drivers can spend an average of 60% less each year operating their EV. Their lack of an internal combustion engine also means electric models require less expensive maintenance and run a lower risk of expensive repairs that take them off the road. The higher acquisition price is, over the course of a vehicle's lifespan, a small price to pay for the thousands of dollars in savings and the time they save businesses.
Are Electric Vehicles Expensive to Charge?
The cost of charging an electric car may be a concern for some business owners, but it's actually far less than paying for gasoline, especially when you run a long-distance fleet. Charging costs will generally be several hundred less per year for an electric vehicle, making it both cost-effective and energy efficient. You can learn more about electric car charger costs, charging networks, and the basics of installing EV chargers for your fleet in an online guide.
The biggest expense when it comes to keeping your EVs charged will be the location. Most businesses will not have easy access to an electric vehicle charging station capable of keeping all their cars powered up. Installing a commercial EV charging station costs anywhere from $2,000 to over $60,000. Level 2 and 3 electric vehicle charging stations offer on-demand power for your car’s batteries. Level 2 can charge a vehicle completely in eight to 10 hours; Level 3 offers rapid, 1-hour charges that make it worth the investment for companies that can afford its high price.
Can You Write Off Electric Vehicles on Your Taxes?
Fuel isn't the only savings option with an EV; you might be able to write off up to $7,500 for cars purchased in or after 2023 under Internal Revenue Code Section 30D. To qualify for this deduction, your vehicle must be purchased for use, not resale, and be used primarily in the United States. Furthermore, your adjusted gross income may not surpass $300,000 for married couples filing jointly, $225,000 for heads of households, or $150,000 for all other filers.
Electric SUVs, vans, and trucks have a max Manufacturer's Recommended Sales Price (MSRP) cap of $80,000; for sedans and passenger cars, that limit falls to $55,000. Used vehicles, regardless of model, have a limit of $25,000. Starting in 2024, buyers will have the option of transferring their tax credit directly to their dealer, so they can lower the cost of their vehicle directly. Keep in mind that some models are also eligible for partial or complete write-offs, like the BMW xDrive50e, Cadillac Lyriq, Chevrolet Bolt and Bolt EUV, Silverado, and several makes of Tesla sedans.
Choosing the Right Time to Invest in an Electric Fleet
Cars are always an expense, but they can transform into investments when you time your purchase right. If your fleet has been unable to meet the demand of your customers, then now could be the right time to consider selling them off and going electric. If you've found that current fuel costs have been draining your operating budget, then going electric at the end of a quarter could be the perfect way to start the next one-off right. The upfront costs may still be too hefty for some companies to afford to replace their entire fleet. In that case, opting to swap out just a few cars for electric alternatives could be a good start
