PHEV car lease review: the BMW 3 SERIES SALOON 330e M Sport 4dr Auto (Tech/Plus Pack)

What is the best PHEV to lease?

The growth of “alternative fuel cars” is allowing many company car drivers to enjoy some more competitive company car tax calculations. In particular, from April 2020 there will be some significant changes taking place in the UK. Now formally announced by the Government/HMRC, anything purely electric (EV) or plug-in hybrid electric (PHEV) will essentially get some significant support on the taxation-side.

Just reverting to the beginning, when you have a company car, you need to be aware that as an employee you cannot use the vehicle free of charge. Having a company car is a benefit to you and, as your employer/company are taking the risk, HMRC will expect your employer to deduct (from source) an amount based on a specific calculation.

So how do I know how much company car tax I will be paying on my new car?

Quite easily, head over to one of the UK websites which help you calculate it straightaway, like Comcar. What you need to do in order to get a calculation is to provide details of the vehicle and it will help you to see two key things:

1. P11d value; and
2. CO2.

The P11d value is a taxable value which is based on the manufacturer list price plus VAT, any manufacturer or dealer options and delivery charges. You don’t need to add the first registration free or the vehicle excise duty (road tax). Essentially the more expensive a car is, the higher its P11d value will be.

The value is then calculated by your income tax bracket (20/40% etc) and a Benefit In Kind (BiK) percentage. The BiK is based around the CO2 of the vehicle, in that the higher the CO2, the more the BiK percentage will be (and the higher the tax you will pay). For example, in 2019/20 you would have a 22% BiK for a 75-94 CO2/km vehicle in comparison to 37% for a 165 CO2/km car.

Additionally, your fuel choice is relevant – any diesel vehicles which are not RDE2 complaint will have an additional 4% surcharge applied. For high net worth individuals in the higher income tax bracket, having a non-compliant RDE2 diesel vehicle which emits more than 165g of CO2 will lead to monthly tax exposure of hundreds, if not thousands, of pounds! To summarise, a company car is not free; it is an incredible benefit to have but there is a cost to you. For some drivers, this has resulted in a move to a company car allowance.

From 2020, there will be some great changes for company car drivers adopting more “eco cars”, as vehicles with lower emissions will attract much lower BiK percentages. For example, a zero emission vehicle (i.e. an electric vehicle) will have 0% BiK. This means a company car driver will pay absolutely no company car tax for driving an electric car.

Of course, you do need to see if the EV is suitable for your driving style and behaviour, and fits within the company budget, but it is clearly a great option to consider. PHEVs will also be a great option for some drivers as a vehicle with an electric range of 30-39 (which many PHEV are moving towards) will incur a 10% BiK percentage. Comparing this to the 25% and above for like for like petrol and diesel combustion engines and you can see it will present a far more financially prudent solution for many drivers.

Is a PHEV the same as a pure EV?

The PHEV is being seen very much as a “gateway” to electrification, as it is likely to be introduced to many company car fleets. As the vehicle has a combustion engine, mainly petrol but diesel available, there is no range anxiety as, if the vehicle is insufficiently charged, the vehicle will simply run on the combustion element.

However, as the vehicle has a much more substantial lithium-ion battery, this allows much more electric-only driving which mild and self-charging hybrids cannot offer. Additionally, a PHEV requires external charging, in that it needs to be plugged into a vehicle charge point (or 3-pin plug).

This starts educating drivers in anticipation of going full electric, as you learn about charging locations, charging times and speeds. Much of this is seen as a major inconvenience when in fact it is often nothing more of the case that being prepared suitably. At e-car lease, we have a number of “how to” guides which dispel many of the myths.

For those drivers needing any help or advice just get in touch with our team.

Standard equipment for the BMW 3 Series M Sport

In terms of the car shown, the BMW 3 SERIES SALOON 330e M Sport 4dr Auto [Tech/Plus Pack], this is based on the following configuration:

• Portimao Blue Metallic Paint
• Vernasca leather - Oyster with grey stitching
• Aluminium tetragon interior trim
• 19" M double spoke bicolour jet black light alloy wheels - Style 791M with mixed tyres and run flat tyres

As standard the car includes adaptive LED headlights, leather upholstery, cruise control, parking assistant, acoustic glazing, green tinted heat protection glazing, rain sensor with automatic headlight activation, sun protection glass, DTC, DSC, electronic differential lock control hill start assist, M sport braking system, front/rear velour mats, adaptive M suspension, high beam assistant, automatic tailgate opening, enhanced Bluetooth with wireless charging, attentiveness assist, auto start-stop, BMW live cockpit, 10.25% high resolution display, head up display, wifi hotspot, exterior mirrors electrically folding with anti-dazzle function, DAB radio, Harmon/Kardon, body coloured externals, extended LED headlights, LED fog lights, air conditioning, multifunction steering wheel, ambient lighting, connected pack professional, aerodynamic pack, warning triangle, first aid kit, Thatcham cat 1 alarm system with immobiliser, comfort go keyless engine, 19” alloy wheels, heated front and passenger seats and sports seats. In terms of additional options consider adding to your 3 series – lumbar support and the premium pack.

Technical data on the 3 Series PHEV

On the technical side, company car and business users can note the P11d at £43,175.00 and CO2 at 37g/km. The 1998CC 8 speed petrol engine/ 34 kWh lithium-ion battery delivers 176 combined MPG (EC), a 40-mile EV range, 0-62 times of 5.9 seconds and service intervals of 24 months or 18,000 miles (whichever lands sooner).

Would the BMW 3 series be your next car leasing option? Or would the Mercedes C class or Audi A4 be your preference?               

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