TCO, how can you be the same yet so different?

In a context of fuel and energy prices volatility and if electricity keeps rising, will a Battery electric vehicle (BEV) remain competitive compared to an Internal combustion engine vehicle (ICEV)?

To answer this question, we calculate the TCO 3 of four different company cars: an ICEV, its BEV equivalent, a high-end BEV and an entry level BEV.

We study two scenarios : the first one is based on current fiscal regime while the second one is subject to the new upcoming fiscal evolution.

For each scenario, you can choose the electricity and fuel prices, and compare the results.

Model

Leasing price *

Annual mileage

Contract duration

Engine

Peugeot 3008

755 €/month

30.000 km

5 years

ICEV

Renault Zoé

773 €/month

30.000 km

5 years

BEV

Volkswagen ID.4

848 €/month

30.000 km

5 years

BEV

Tesla Model 3

1135 €/month

30.000 km

5 years

BEV

(*) Source: Directlease.be - August 2022. Charging infrastructure costs are not taken into account in this analysis.

Test it below

Year of acquisition

Electricity price (€/kWh)

0.4

0.52

0.64

Fuel price (€/L)

1.75

1.95

2.15

What to conclude?

Today already, ICEVs are more expensive than same tier equivalent BEVs, even with a sharp increase in electricity prices.

What to conclude?

Today already, ICEVs are more expensive than same tier equivalent BEVs, even with a sharp increase in electricity prices.

Benefit in kind: what is the most advantageous for employees?

A company car is a Benefit in kind, considered as a professional revenue, meaning that employees pay taxes on the value of the BIK.

The BIK is calculated based on different properties on the car (age, list price, CO2 emissions).

Peugeot 3008, 1.2 PureTech

BIK: 3924 €

Renault Zoé, Iconic EV50

BIK: 1400 €

Volkswagen ID.4, 77kWh Pro Performance

BIK: 1745 €

Tesla Model 3, Long Range Dual Motor AWD

BIK: 2125 €

Did you know?

Electric cars possess a lower Benefit in kind than their thermal counterpart

Smaller ICEVs with low emissions can still get you to the minimum BIK like their BEVs counterpart.

Did you know?

Electric cars possess a lower Benefit in kind than their thermal counterpart

Smaller ICEVs with low emissions can still get you to the minimum BIK like their BEVs counterpart.

This paper was focused on comparing thermal and electric cars, in a context of fiscal changes and volatile energy prices.

On many aspects (financial, environmental, …), the conclusion is that electric cars are more attractive than thermal ones.

However, alternatives to cars should not be forgotten! Our last papers compared the travel time of cars vs. alternatives, next papers will be about their environmental and financial effectiveness. Stay tuned!