The new Model 3 Tesla
Thank you to our personal car leasing customer, from Abingdon (Oxfordshire), for sending pictures of their brand-new electric car – one of the best-selling vehicles in the UK for August (top 3) – the Tesla Model 3. While the Ford Fiesta was the UK’s number 1 and the VW Golf is the number 2, the Tesla was surprisingly not too far away from these ever-present successful manufacturers. According to industry guidelines and facts just over 2,000 were registered in August, some 300 more than a Mercedes A-Class. This is somewhat impressive when you consider that this time last year the prospect of an electric car being so popular would have essentially have you laughed you out of the room. So many people have considered alternative fuel forms to be a short-term addition to our fleet and that this wouldn’t be something that would catch-on. Of course, the Tesla models prove this not to be the case This is a start-up business which has effectively disrupted the worldwide automotive sector when businesses like Ford, Mercedes and BMW would have probably considered them not be a threat 5 years ago. However, the Model S and X have been pioneering vehicles and throughout the world some wealthy individuals have been enjoying their fantastic technologies. The problem is that these are not cheap vehicles; you do need a healthy income or productive business to afford one of them. However, the introduction of the model 3, a £35,000-£50,000 option, has seen opportunities for the middle-class and company car driver to enjoy the fruitful driving of an electric car. The Model 3 is finally bringing a solution to the masses.
Should I lease an electric car on a personal contract hire basis?
You will often hear that electric cars are company cars/for businesses only. This is not accurate; either a personal customer (like the one here) or a business customer could effectively procure a new EV. The reasons why you would lease the car are slightly different for an electric car when you consider personal v business leasing. From April 2020, the company car tax rules are changing to the extent that operating an electric car will mean ZERO BiK. For those high-earners with 40% income tax brackets and beyond, running a vehicle on a business basis means paying high amounts of company car tax. Every month they will see their salaries being deducted in accordance with the requisite monthly tax. Expensive diesel Range Rovers or high-performance Mercedes AMGs are not going to help your tax position. This is why many company car drivers went towards a car allowance (cash for cars), as they realised that receiving a monthly contribution with their salary was far more effective that the tax they paid each month. The problem with the UK’s emissions based tax regime was that it was forcing drivers into cars they didn’t want; it is only in the last 2 years have there been more “alternative fuel” solutions becoming available. For most drivers, a fixed amount in their pay packets (less any income tax) meant they could drive any car they wanted, petrol or diesel, without the emissions leading to negative financial consequences.
But will company car attitudes change?
The emergence of hybrid, PHEV and pure electric solutions definitely making the business contact hire route more digestible. With HMRC supporting those drivers from next year, we have noticed a considerable interest in changing back to a company car. In particular, the pure electric option means that some drivers will have a much improved financial position. Indeed they will probably save 50% or more on their vehicle. And the main thing with an electric vehicle is that you are no longer compromising; electric cars are becoming better in terms of technology, range and aesthetics. The new Mercedes EQC, Audi e-Tron, Jaguar I-Pace and VW ID ranges are showing the commitment to this type of vehicle. They look like combustion cars, they drive even better than combustion cars and they cost a lot less to the run!
For personal drivers, particularly those covering lower-mileages (8,000 and less per annum), the interesting notion of electric vehicles is that not only are they far more environmentally friendly, they will be substantially cheaper to run. Many vehicles in the electric world are able to run at 3-4 pence per mile and can cover anywhere between 150-250 miles on a full charge; you don’t need to charge them every day and if well-managed, they are very easy to bring into your commuting life. For some lucky drivers, their employers may offer charge points free of any cost; there is currently no BiK on electricity supplied through work. This means free fuel for some drivers. When some customers are paying upwards of £100 per month on low mileage fuel bills, this does need to be taken into account as part of whole life costs. Driving an electrical car on a personal basis is not just about saving fuel, the cars are genuinely enjoyable to drive, the offer fantastic technology and specification and finance companies are backing them through strong Residual Values (RVs). The RVs show just where our future is – over the next 5 years we are going green!
Standard equipment for the Tesla Model 3
In terms of the car shown, the Tesla MODEL 3 SALOON Performance AWD 4door [Performance Upgrade] Auto (Pure Electric Vehicle), this is based on the following configuration:
• Midnight Silver Metallic paint
• Premium textile – Black PUR seat
• 20″ performance alloy wheel
As standard the car includes automatic emergency braking with collision avoidance, ESC, lowered suspension, Wi-Fi, Bluetooth, adaptive cruise control, front and rear parking sensor, land departure warning system, park assist camera, track mode, traffic sign recognition, front cross traffic camera, BLIND, satellite view maps, auto dimming/heated/folding door mirrors, 15” touch screen, DAB radio, premium audio (14 speakers/1 sub-woofer/2 amps and immersive sound), steering wheel mounted controls, automated high beam assist, LED headlights/running lights/fog lamps, climate control, 4 USB ports, tinted glass sunroof, 12-way power adjustable heated front and rear seats, 60/40 split folding seats, 20” alloys, keyless entry with remote climate and alarm/immobiliser. In terms of additional factory options – there is an upgraded black and white trim or premium inserts. The main feature is the £5000 full self-driving capability.
Technical data on the Model 3
On the technical-side company car and business users can note the P11d at £57,490.00 and CO2 at 0g/km. The 88kWH battery delivers 329 miles on a full charge (WLTP), charge times of 454 minutes on a 11kW charger or 107 minutes on a 50kW charger, 456ps and 0-62 times of 3.2 seconds. Service intervals are every 24 months or 25,000 miles whichever lands sooner.
So would you select the Model 3 Tesla as your next car leasing option?