Is the electric company car switch feasible?
With the proposition of the Federal Informant Paul Magnette (PS) in mind, can an employee switch to an electric company car for the same budget? In addition to the question of budget, will employees be ready to make the change and get over the hindrances of charging and holiday travels?
Let’s take Paul Magnette’s proposition as a hypothesis for the near future. As a reminder, the Federal Informant suggested last week to change the tax deductibility system for company cars in the near future. He wishes to offer the advantage only to fully electric cars by 2023. However, as of today, electric cars are still 20 to 25% more expensive than conventional ICE cars.
Keeping the moral of ‘salary cars’ apart for one moment, let’s dive into the issue of the budget. For the Informant’s plan to go smoothly, employees should be able to switch from a diesel or gasoline car to an electric equivalent for the same budget. However, that isn’t feasible yet.
Newspaper L’Écho has compared the five most common company cars of the country (VW Golf, BMW X1, Skoda Octavia, Audi A3, and Renault Clio) to their existing electric counterpart in terms of monthly net costs. The results aren’t good. With the new 2020 deductibility reduction, an e-Golf will still cost around 100 euros more than a Golf diesel. Even a Renault Zoe will cost 158 euros per month more than a Clio.
Charging at home
The issue of charging isn’t as important as the budget difference because alternatives already exist. Numerous leasing companies or energy providers have already created specific charging contracts linked to a charge card. The card can be used to activate the charge port at home or on the road, and the billing goes directly to the employer. He can, therefore, deduce it as he did for the diesel or gasoline bills.
“As of today, 70% of charges are done at home, 20% at the office, and 10% in the street,” explains Sébastien Legat, New Technology & Connectivity Manager at D’Ieteren Auto.
Of course, the Informant’s proposition makes sense for employees who only use their company cars to go to work. Representatives and brand officials who spend their day on the road won’t be happy about the tax change. Still, the conventional employee goes on holiday. But, how does the electric car fare in that situation?
Thankfully, leasing companies have thought of that particular situation. “It’s already possible to choose a greener or smaller car today and ask for a different car to move or to go on holiday. It’s already possible for electric cars,” explains Jean-Luc Vannieuwenhyuse, Legal Expert at SD Worx.