Is it the right-time to lease a PHEV?
Customers, personal and business, are now exploring in more depth the fuel choices on their next new car – mild hybrid, hybrid, PHEV and fully electric are now freely available (and sometimes on the same car!) Like any new product, the first challenge which many businesses face is the education aspect with the customer.
The UK is very much a deal-focused automotive market – what’s the best price? What’s your best deal? Very common queries which we all face from customers as they scour to get best value.
However, with the new combustion choices we try to bring the customer back towards the education aspect so they completely understand the facts and the whole of life costs. Regardless of how cheap a vehicle is, you cannot proceed further where the fuel type is inappropriate for your needs and requirements. Treating customers fairly is at the heart of our business.
Is a PHEV an electric car?
So what is the “PHEV” and why are they so popular? For any customer who wants to review some information in more depth just head to our intelligent guide to PHEVs
A PHEV, or Plug-In Electric Vehicle, is not a brand-new concept; there have been some key options available for a number of years such as the Mitsubishi Outlander.
However, the investment by manufacturers into this type of technology has seen a plethora of great car choices become available – Audi, BMW, Mercedes, Kia, Hyundai are amongst the manufacturers now producing a wide-range of electrified options.
In many ways, the PHEV is seen as the conduit, or pathway, to full electrification. Unlike a pure EV, the PHEV is a combustion engine (petrol or diesel) coupled with a lithium-ion battery. This electric element can enable “EV-only driving” for a 15-30 mile range or the battery will assist the combustion engine to enable better efficiency.
The onus is on the driver to ensure the battery is sufficiently charge by plugging this into an external power source on a regular basis – you can use a 3-pin plug or a separate electric car charging unit (which will be quicker). This is seen as a more comfortable car by many drivers, as the vehicle will operate where the charge runs out. However, some militant electric-heads believe this is nothing more than a tax avoidance vehicle and consider that many drivers will not charge it properly (or at all).
So should I, or my business, lease a PHEV now?
The movement across to PHEVs is consistent with the growing pressure on our society to consider electric solutions. Within the UK we have a rigorous company car tax regime which effectively encourages any business users to elect for a vehicle with a lower CO2 per KM figure.
What some company car drivers do not appreciate is that the vehicle they use is rarely done without a cost to their personal tax position. Every month their salary will be reduced by the relevant tax on the vehicle.
For many Plug-In leasing options, the vehicle will produce less than 50g/km and so will enable the driver to benefit from significant tax savings. For example, a sub-50g/km vehicle with less than 30 miles of electric-only range will result in a 12% BiK in 2020, 13% in 2021 and 14% in 2022.
With equivalent petrol or diesel combustion engines having BiK percentages of 25% and above, you can easily understand why a company car user is advised to consider their fuel options more carefully. In some cases, you will be saving hundreds of pounds per month in company car tax.
Many of the obstacles to the world of electric transport are being removed.
The UK government, policy-makers and local authorities are now investing, or are making changes, which is creating a natural transition across to this product. Between the Office for Low Emission Vehicles and Go Ultra Low , there are a swathe of updates, policy amends and tools which you can use to help understand how the future is now actually the present.
This type of fuel is no longer something which might occur; we are very much in the midst of changing our vehicles, buying habits and car choices. For those sitting on the fence, the PHEV may be a great way to introduce the notion of car-charging and electrification into their lives (or business culture). Without a doubt many of the latest car leasing deals are now based on pure electric or PHEV vehicles, which demonstrates just how important this transition is.
In terms of the car shown, the RANGE ROVER SPORT ESTATE 2.0 P400e HSE Dynamic 5dr Auto (Plug In Hybrid Electric Vehicle – Petrol)
This is based on the following configuration:
- Portofino Blue Metallic Paint
- Morzine ebony headlining
- Dark engine turned aluminium trim finisher
- 21″ 9 spoke gloss black alloy wheels – style
Body Coloured Roof
- Black Exterior pack – Range Rover Sport
Privacy glass (Tinted glass rear of B pillar)
- Fixed panoramic sunroof with electric sunblind
As standard the car includes lane departure warning, ambient interior lighting, heated front/rear seats, matrix LED headlights, climate control, power folding/heated door mirrors with approach lights, front and rear parking aid, 21” alloys.
Windsor leather, rear view camera, cruise control, fixed panoramic sunroof, 16-way electric adjustable seat with 4-way lumbar support, Meridian 825W surround system, acoustic front windows, rain sensing wipers, CBC, emergency braking, gradient acceleration control, hill launch assist, hill descent control.
Apple car play/android auto, remote premium, mist sensor, navigation pro system with 10” touch screen, auto dimming rear view mirror, InControl protect, adaptive brake lights, follow me home lights, extended leather upgrade.
Multifunction steering wheel, smartphone pack, immobiliser, keyless start and intrusion sensor. In terms of additional options consider – privacy glass, 360 degree surround camera, head up display and the Black Exterior Pack.
On the technical-side company car and business users can note the P11d at £76,810 and CO” at 74g/km. The 1997CC 8 peed auto petrol engine delivers 404ps, 0-62 times of 6.7 second and combined MPG of 75.
You also have the benefit of a 13.1 kWh lithium-ion battery which will allow circa 25 miles or pure electric driving and this will charge on a 3-pin plus in circa 2-3 hours. Service internals on a PHEV Range Rover Sport are every 24 months or 21,000 miles.