The Hyundai INSTER Electric Car lease goes live

Our latest electric Car Lease goes live - The Hyundai INSTER

As another affordable EV gets introduced to the UK, in the form of the Hyundai INSTER, we also awake to what seems to be negative news pertaining to the health of the battery / BEV industry.

Many news and automotive websites are reporting on the recent changes to the BMW / Mini strategy on their plant at Oxford. Last year (2024) the Mini Group confirmed that their Oxford plant would receive a significant investment, along with Government support, to help make this a battery and electric vehicle production site.

As you can see on the Mini website this is the heart of the Mini product, with this being 112 years old! For such an iconic factory, the news of battery and electrification was welcome news, as the competitive nature of the EV industry has seen robust alternatives to the Mini see the brand on the back foot.

However,  multiple uncertainties and challenges to the industry are holding back the group from continuing with their £600m investment into the plant.

While there hasn’t been a confirmation of cancellation, the group are proceeding with works to modernise and improve the plant but the plans for reintroducing battery-electric vehicles is on hold. With the Government suggesting a £60 million grant would be supplied, the Mini brand has elected not to accept this.

As reported in the BBC the BMW/Mini team are in “close dialogue” with the UK government, which have in turn recognised the challenges which car makers are now facing in making the transition. Any changes are not just about making more EVs for the UK, with around 4,000 jobs earmarked to be created with the factory improvements. Plus there is an obvious fact that manufacturers selling new cars in the UK need to adhere to the ZEV mandate criteria too.

But is it just “conditions” which are stopping the Mini Aceman, Cooper and Countryman electric from selling to business customers like pubs and restaurants? The argument in the leasing industry is more simplified than perhaps taking into account cash sales, hire purchase and the used electric sector.

The difficulty that Mini have faced is that their latest swathe of product has seen the brand move into a more expensive and luxurious category. The mistake which many manufacturers are still making is the assumption that UK customers are going to pay more for the perceived benefit of going green. Indeed, having combustion alternatives which are cheaper than the battery options is not a sage move either.

Where Mini do not help themselves, is that much of their support and incentives stem from the customer being a business. For personal customers, there are often fewer deals and discounts in the contract hire market. For us as the broker, this means we place what would be PCH and retail custom on the Mini to other more competitive brands like Cupra, Skoda, VW and Audi. As we will discuss below, a limited company receives such benefits for going electric in a contract hire / salary sacrifice arrangement, the cost implications are somewhat cushioned.

Hyundai are taking a different approach to the market by introducing a compact EV with a bold statement. Small in stature but large in practicality, the INSTER is very much about a convenient and functional vehicle, with flat fold seats, high SUV features but still keeping an eye on performance and range.

Being forward thinking, the Bidirectional charging via the V2L capability will make this a great asset to lease. There will be a good choice of options from the Hyundai website with a 01 (from £23,495), 02 (from £26,745) and Cross (from £28,745). For local pubs who are looking to add a cost-effective small car to their fleet this could be the ideal option.

If you are running a local pub, via a limited company, then it would be wise to speak to your accountant about the best way in which to run your vehicle fleet.

In addition to this, we are also finding that many popular pubs are now installing charge points on their premises to assist visiting customers; any charge point infrastructure investment is not only wholly tax deductive (under full expensing), there is also the possibility of a Government grant.

Many pubs will use a small car, coupled with livery and signage, to showcase their establishment to the locality. Having a car available to staff and management is a key resource. When you go electric for the business, the benefit is that you reclaim 100% of the monthly rental against Corporation Tax and up to 50% of the VAT on the finance aspect. If the pub is using the EV as a pool car, then you can reclaim 100% of the VAT on the payments.

If staff or management are to be offered a company car, then the INSTER is not only an affordable proposition to the business but to the employee too as this offers a far more cost-effective way to procure a new car compared to a combustion option or a personal lease arrangement.

When you use a company car, the employee must pay company car tax and payroll must apply a calculation to HMRC. The level of tax you pay is based on the vehicle’s emissions, car value (the P11d) and the employee’s income tax threshold (20/40/45%).

The key point to note is that pure electric cars do enjoy a seismic benefit under the company car tax rules and moving into combustion will cost the individual a significant tax bill. This is why EVs are growing at such pace, with employees readily taking EVs on fleet schemes and salary sacrifice arrangements.

For local pubs, who hold such regard in their local towns / communities, utilising a green vehicle is a show of commitment to the net-zero obligations and improving air quality. Being pioneers for the local residents is now a formidable endeavour.

But how does the electric INSTER perform?

Two electric motor configurations will feature including:

• Standard Range – has a usable battery of 39 kWh which offers 71kW (95hp), top speeds of 87 mph and 0-62 times of 11.7 seconds. Real-world ranges suggest a combined 130 miles in colder weather with warmer temperatures to allow for 180 miles (on a full charge) – 155 miles combined . The 11kW AC allows for 0-100% charging times of 4 hour and 15 minutes with the 73 kW DC enabling 10-80% in 29 minutes. The EV has Bidirectional charging – V2L via a 3.6kW AC Type 2 Adapter on exterior and 1 UK socket interior. It has a 161 mpg equivalent, 280L cargo volume but far more with the seat configuration chosen. The Heat Pump is standard; and

•  Long Range – has a usable battery of 46 kWh which offers 85kW (114hp), top speeds of 93 mph and 0-62 times of 10.6 seconds. Real-world ranges suggest a combined 150 miles in colder weather with warmer temperatures to allow for 210 miles (on a full charge) – 185 miles combined . The 11kW AC allows for 0-100% charging times of 5 hours with the 85 kW DC enabling 10-80% in 29 minutes. The EV has Bidirectional charging – V2L via a 3.6kW AC Type 2 Adapter on exterior and 1 UK socket interior. It has a 163 mpg equivalent, 280L cargo volume but far more with the seat configuration chosen. The Heat Pump is standard

For more information on our business, and personal, deals on the Hyundai city SUV just head to our  Hyundai INSTER Lease Offers, or just get in touch with our team on 01942 910 001 or by emailing us at [email protected]