Electric Van Fleet Transition Finance for a Last-Mile Delivery Business
£520,000 · 4 years · 6.65% fixed. A last-mile delivery business in a major city was facing a Clean Air Zone charging that would apply to its existing diesel van fleet from 2025.
The Client
Last-mile delivery business in a major city
The Challenge
A last-mile delivery business in a major city was facing a Clean Air Zone charging that would apply to its existing diesel van fleet from 2025. Transitioning to electric vans was the solution - but the higher purchase price of EVs and the cost of charging infrastructure made the capital requirement significantly larger than a like-for-like diesel replacement.
Our Solution
Doulton arranged a finance lease covering fourteen electric vans and the installation of a depot charging infrastructure. The green finance element allowed access to lenders with sustainability mandates offering marginally better pricing. The Clean Air Zone avoidance saving - calculated at £18,500 per annum across the fleet - was presented as a direct return on the investment.
The Outcome
Fourteen EVs and charging infrastructure operational before the CAZ implementation date. CAZ charges avoided entirely. Annual fuel and maintenance savings versus diesel: £31,000 in year one. The business has since won an additional delivery contract partly on the strength of its zero-emission fleet credentials. Key highlights: Green finance - sustainability lender accessed - improved pricing; CAZ charges avoided entirely - £18,500 annual saving; Zero-emission credentials won additional delivery contract.
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