Acerta: EVs 50% more expensive in list price, not in TCO
An electric (company) car is still on average 50% more expensive than its sibling with an internal combustion engine (ICE), says HR-service bureau Acerta, but in Total Cost of Ownership (TOC), that’s not the case. Employers are raising their company car policies to allow higher list prices.
Acerta bases its findings on a survey with 260 000 employees having a company car at 40 000 Belgian companies. Today the average list price of the company car leased or purchased is 51 500 euros for an EV, compared to 34 500 euros for a comparable car on fossil fuels.
Employers are hesitating
Even with the latter losing their fiscal deductibility in Belgium gradually from 2023 and EVs being mandatory from 2026 on, many employers are still hesitating to switch to electric due to the high list prices. That’s not always justified, says expert Karolien Van Herpe at Acerta Consult, when you consider the entire cost of the car over its usage period (TCO).
For example, Acerta compares a diesel car with 99 grams of CO2/km with a fully electric vehicle. The diesel car listed at €26 241,59 and leasing cost of €6 071,52 per year, the EV with a list price of €49 842,78 and leasing cost of €8 358,48.
But when taking into account fuel or electricity costs, taxes, insurance, and deductible VAT, both are comparable in TCO: €10 288,70 per year for the diesel, €10 315,92 for the EV. An extended study of Dutch leasing giant LeasePlan showed already that in a lot of cases, the TCO of EVs in popular lease car segments is equal or lower in more than half of European countries.
According to LeasePlan, that’s the case in Belgium, and 13 to 16 of 22 investigated EU countries for cars of the mid-sized premium segment (D2) and compact cars (C1 and SUV-C1). The latter is a breakthrough for EVs. For small vehicles, the so-called sub-compact segment (B1) that breakthrough is slower but happening in 8 of the 22 countries.
In the financial newspaper De Tijd Belgian leasing federation Renta’s director Frank Van Gool quotes a simulation of a Tesla 3 being at par today with a popular BMW 3 Series, at a TOC of 1 030 euros, against 1 055 euros.
Generally, expectations are the employers will not wait until 2026 to start offering EVs to their employees, but Van Gool instead thinks they will begin to switch massively by 2023.