Can you get an electric company car?
The situation created under Covid-19 and lockdown has led to a number of political, economic and societal changes; not all of these are bad or negative. Overall, it will remain as one of the most challenging times for many businesses, small and large, as we now move forward in a very different way.
The car industry has been directly affected by the events – dealerships have closed, cars cannot be delivered or collected and many finance companies are having to move to remote and out-of-office solutions.
As such, we are facing shortage of stock, poorer customer service levels and a lot of knee-jerk reactions to the ever-changing landscape. Running a car leasing brokerage has never been more difficult. However, within all of these issues, we have found some elements of positivity, as we move our business onto the next steps.
Are Company Car Divers Considering An Electric Car Lease Option?
Electric car leasing has become one of the most talked about propositions of 2020, continuing an almost seismic momentum from 2019. Indeed, electric car manufacturers can thank lockdown for providing a new environment in which they can thrive.
The reducing mileage requirements of many drivers (particular company car drivers), concern for the environment and political focus has resulted in the EV market, for both cars and vans, becoming a top priority.
As manufacturers shift investment on their product towards electric and PHEV solutions and with more and more charge point solutions (including come amazing new “electric service stations” from GridServe , there are fewer obstacles and arguments against an EV – can I charge it?
Are they too expensive? Is there enough choice? Really, much of the arguments are fading away and some real opportunities are arising. Having supplied many hybrid/PHEV and electric cars through CarLease UK, we took the opportunity to make a distinction between our eCarLease and CarLease offerings.
The service and price-competitiveness is the same but the customer journey is slightly different. Many finance companies and leasing brokers are taking this route as they need to have the right conversations with customers so that they receive a vehicle which is suitable for their needs and requirements. As we move into 2020, a customer is blessed with an array of exceptional electric car leasing companies to work alongside.
Much of the focus has been on company car and salary sacrifice when you mention an electric car. Why is this? What most people are probably not aware is that a company car is not “free”; while your company will pay for the vehicle/servicing/maintenance/insurance and fuel, there are cost-consequences for you as the individual driver. This is referred to as BiK (Benefit-In-Kind) or company car tax.
The amount of tax you pay (which is deducted at source from your monthly pay packet) is based on the value of the vehicle, your income tax bracket and, most importantly, the emissions the vehicle produces. In an effort to reduce emissions across the UK, HMRC have been somewhat punitive to those inefficient vehicles which exist on our roads and, in recent years, on non-RDE 2 diesel vehicles.
This is about reducing NO and CO2 to ensure we have a sustainable future for our environment. The crucial point about an electric car, or van, is that it procures ZERO emissions from the tailpipe. So is having 0g/km on your vehicle a good thing as a company driver? Well, for tax year 2020/21 this means you will zero company car tax. For the first-time in many years, you will have no tax to pay.
Are there electric car leasing companies?
The transition towards company cars as electric propositions is not without its challenges – can the company budgets afford it? How will high-mileage users manage the situation? Can the individual drivers have a charge point solution at home.
This is not an exhaustive list and there will be other considerations in each scenario. For early adopters there is always that premium to pay for infrastructure and learning but in the medium to long term this will place them in a great position to manage a rapidly changing automotive landscape.
Actually driving and managing an EV is fairly easily and we have received little negative feedback from our database. As with many facets of life, do the right research and prepare adequately to get the right outcome. What we want to avoid is drivers taking an EV just to avoid company car tax with little to no thought.
Our Latest Electric Car Leasing Delivery
In terms of the car shown, the Audi e-Tron Estate Special Editions 230 kW 50 Quattro 71kWh Launch Edition 5 door Auto EV Pure Electric Vehicle, this is based on the following configuration:
- Brilliant black Solid Paint
- Valcona leather upholstery with front sports seats-Black/Grey Stitching
- Graphite grey paint finish inlays
- 21″ x 9.0J ‘5-V-spoke star’ design Audi Sport alloy wheels in platinum-look
As standard this car includes air conditioning, leather upholstery, heat insulating glass, Audi sound system.
Virtual exterior mirrors. 21” alloys, privacy glass, air suspension, 360 degree camera, wireless charging, adaptive cruise assist,
Audi aside assist including pre-sense and rear cross traffic alert, collision avoidance assist, traffic sign recognition, parking system plus, turn assist, virtual cockpit plus, MMI navigation, DAB radio, fixed panoramic glass roof, matrix LED headlights,
LED rear lights, leather steering wheel, black styling pack, twin leather pack, 4/way lumbar support, heated front seats and keyless go. In terms of additional option consider adding the air quality pack and the 4-zone climate control.
On the technical-side company car and business users can note P11d £73,395.00 and CO2 at 0g/km.The battery capacity offers 71kWh, 313ps, WLTP range of 175 miles and 0-62 times of 6.8 seconds. The service intervals are set at every 24 months or 18,000 with a 100,000 mile/8 year battery warranty.
In terms of charge times, an 11kW rapid AC will take circa 390 minutes for a full charge and a 120kw DC will take just under one hour.