Making the smart decision with your next company electric car lease

Your next company electric car lease - Making the smart decision

The Chinese conglomerate, BYD are shaking up the UK's car markets. Fresh off a successful Dolphin Surf launch, which we previewed in our recent news article, the group are now hitting the UK and European shores with an almighty boom.

As noted in a recent piece from GB news there are some 7,000 BYD units arriving on a megaship - the Xi'an vehicle carrier shipping vessel. The demand for BYD has surprised many, especially with Tesla being so dominant in the UK since 2020.

But innovation, engineering and price is becoming more competitive, with the Asian powerhouse looking to capitalise on the various gaps in the UK's various segments. Unlike Tesla, the BYD suite of products is far more diverse and unique, with vehicles in almost every conceivable division.

The swathe of new electric cars isn't just a positive for the consumers, businesses and salary sacrifice schemes mopping up these options. In the used car sector, long has there been a growing demand for sustainable and cost-effective solutions for the UK drivers to enjoy.

With this sector being crucial to the automotive market as a whole, there is no difference when it comes to battery technology. The difficultly which this aspect has faced is that it is still learning and understanding how to “re-sell” or “re-lease” these cars and vans, while also combating fluctuating residual values and managing a restricted product line-up. It is the latter which has been more readily addressed in the last 1 - 2 years, as more manufacturers enter the market and more diverse cars are being manufactured.

The reality is that the boom of Tesla Model 3, Polestar 2 and BMW i4 were incredible for the new market but not necessarily ideal in the used sector, which is now more targeted to retail customers, sal sac schemes and small businesses.

The UK is heavily reliant on small businesses, or SMEs, which employ some 15 million+ people and make up a vast proportion of the actual businesses in the UK. When we look at small, which is often reviewed as those with less than 50 employees, it is the family businesses and small enterprises with only a few employees which we work alongside and who we are looking to support.

A robust directory and support network is available with the FSB, who have actually written a piece about how an SME could really benefit from an electric vehicle on fleet . However, since the article was created, the maturity in the market has not just bolstered the new vehicles, it has also assisted the ex-lease options which are now floating into the market with various finance companies and leasing brokers.

Since many smaller businesses need flexibility on cost, term and price with their next vehicle, the opportunity to utilise the used options can sometimes be more palatable. With contracts from 12 months - 60 months, mileage from 5,000 - 20,000 and initial rental / deposits from zero to 12 spread, the contract can fundamentally be tailored to the circumstances.

As these vehicles have been subject to depreciation, the cost you would pay going new will often be substantially higher. Yet before there is any panic about warranty, battery reliability and condition, which often holds a customer back, the used leasing arrangement includes all the servicing, maintenance and tyres. Fundamentally the risks have been costed within the arrangement to ensure this does not impact you further down the line.

Unlike a purchase, cash or hire purchase, at the end of the contract the vehicle is simply collected free of charge. So if the car proves to be less attractive or enjoyable, your business has comfort of the return without any concern of additional ownership or disposal.

Whether you run a car scheme or salary sacrifice scheme, it is worthwhile to highlight the great advantages for your employees. At a time where businesses are looking to enhance benefits, without them being too cost-obstructive, utilising a BEV within the business can add real value to your staff.

As HMRC are still supporting zero-emission vehicles, when you lease a used EV the business can offset the cost against Corporation Tax, which includes the finance and maintenance elements. Plus any charging equipment purchased at the business premises can be offset against tax under the full expensing rules.

In addition, because some companies are VAT registered, 50% of that payable on the finance and 100% on the maintenance aspect can be reclaimed, which is why this presents such a beneficial cost-saving to your employees who would otherwise lease a personal car. Another clear benefit is the minimised income tax exposure for the employee, whereby a nominal benefit in kind applies to the zero-emission vehicles. With petrol and diesel vehicles, because they emit more emissions, the tax can be somewhat punishing and off-putting.

So, if a BYD Dolphin Surf could be on your wish-list for the future, then it is possibly worth noting their key specification - the Comfort. From £23,950 this includes 10.1” rotatable touchscreen, vegan leather, privacy glass, electrically adjustable heated door mirrors, 15” alloys, multifunction steering wheel, climate control, Apple CarPlay, rear camera, rear parking sensors.

Lane departure assist, forward collision warning, emergency lane keeping, keyless entry and exit and V2L function 360 degree surround camera, LED headlights, wireless smartphone charging, electrically foldable doors mirrors, exterior mirror footlights, heated seats, electrically adjustable driver’s seat and 2 smart keys. Pretty comprehensive!

Don’t be fooled by this small hatchback, which still has clear undertones of performance and practicality. Just look at the highlights below:

• Comfort  - with a usable battery of 43 kWh this RWD offers 115 kW (156hp), top speeds of 93mph and 0 - 62 times of 9.1 seconds. Real-world ranges suggest a combined 140 miles in colder weather with warmer temperatures to allow for 195 miles (on a full charge) - 165 miles combined . The 11kW AC allows for 0-100% charging times of 4 hours and 45 min with the 85 kW DC enabling 10-80% in 32 minutes. The hatchback has confirmed Bidirectional charging with the V2L via an exterior Type 2 3.3kW AC connector. It has a 308L cargo volume, 155 mpg fuel equivalent and offers no towing capacity. There is no heat pump.

Need more help and advice on used-ev leasing in 2025?

Head to our online used electric car lease sales website or just get in touch with our expert team on 01942 910 001 or by emailing us at [email protected]