Why the new Mini Electric JCW Electric Car Lease could be the perfect option for your Recruitment company

Recruitment Companies why the new Mini Electric JCW Electric Car Lease could be the perfect option

Making your company’s fleet electric is now the prerogative for many of our business customers (with the exception of commercial vehicles / vans). The underlying tax reasons, for both employee and employer, are self-evident but that doesn’t mean that on a more local level that new initiatives and public support does not assist.

A great example of a public confidence booster is the recent  Blackburn and Darwen Council  push to help residents, personal and business, move into all-electric solutions. For many in the Blackburn or Darwen vicinity, there are purported issues where there is no drive. In an area of traditional terraced housing, with on-street parking only, there are obvious queries about how a car can be properly charged.

The council are now working with a provider to use a “cable channel” so that a cable can sit flush with the pavement, so not to cause a trip hazard or obstacle, allowing the resident to plug into the solution while at home. The programme will be run and operated by the council, who will maintain and manage this, but the residents will have equal involvement too.

As the article suggests, an estimated 36% of the vehicles in Blackburn with Darwen will be electric by 2030, which means that at least 800 charge points are required to meet this demand by the 30,000 vehicles.

Local programmes to help residents go electric are crucial to many smaller and bigger businesses who operate in that area. In the recruitment industry, a competitive environment means procuring and retaining leading staff as your salesforce and management team. Many recruiters are now using a company car scheme or salary sacrifice scheme to ensure that the business is as attractive as possible. But how do they actually work?

• Contract Hire - also known as “leasing” this is a usership finance product, which means that you never own the vehicle. The asset will always be registered to the finance company who you arrange the leasing agreement with. As your broker (we are a credit broker and not a lender) we work with a panel of finance companies, who offer the solutions to us. In return for introducing your business to them, we will receive a finance commission (plus some KPI and other related bonuses). Each finance company will have slightly different rates / prices, plus some other such nuances which make them suitable for you. When you are constructing your deal you will be asked for the term (contract length), annual mileage (5,000 - 30,000 miles per annum) and the initial rental (deposit). All of this determines the monthly price you pay for the vehicle / specification. Because it is a fixed contract there are early termination charges if you wish to return the vehicle, which is why we do ask customers to select their term carefully; it may seem like a 4 year deal is better as they usually are cheaper BUT if you have higher labour turnover, you do not want to risk termination fees. The annual mileage will be determined by the driver’s requirements, but this must be reviewed in conjunction with the car (EVs have range / charging limitations). The higher the mileage the more the monthly rental will be but you do not want to return the vehicle with more than the agreed mileage (otherwise excess mileage charges will apply). The initial rental, or deposit, is the financial commitment you make in month one and this will be based on your company requirements / cash flow. Since contract hire is not overtly interest-led the total amount you pay is no different whether you pay more or less upfront - this is more of a query for your FD or accountant. As contract hire can be taken with you maintaining the vehicle (driver-maintained) or this can provided for you (funder-maintained), your business can quickly ascertain if the inclusion of all service, maintenance and tyres represents good value. Elements like a charge point, motor insurance and charging tariffs are down to the recruitment company / employer. To be clear, with a traditional company car arrangement, the employer covers all the costs and the employee (driver) will only incur a tax deduction under the company car tax rules; or

•  Salary Sacrifice - this is a true buzzword of 2023 and 2024, with more and more companies purporting to offer your business an exceptionally exciting scheme to help your employees. This underlying product is not actually new and has been in use for many years. What has probably catapulted sal sac into the market is the EV tax treatment. With a salary sacrifice scheme the KEY difference from the company car scheme is that while the employer pays the finance company, the net figure it pays will be deducted from the salary / wage of the employee (hence the word sacrifice). On the surface, you may think what is the point of doing this, if your salary is effectively being reduced? In practice, for an employee looking at a new EV in the retail market they will use their salary after tax to pay for it (i.e. after paying 20 or 40% in income tax). As the salary is deduced at a gross income level, there is an immediate saving at that point and, for VAT registered businesses, the ability to remove part of the VAT on the monthly rental effectively makes it 10% cheaper. Most salary sacrifice schemes will include all service, maintenance and tyres plus motor insurance too. This means you have nothing to pay other than the fuel / charging and the charge point itself. Many schemes will protect the employer, by allowing the vehicle to be returned to the finance company in the event of an employee leaving (subject to terms and conditions). However, for a recruitment business looking to enhance its employment benefits, this could be a route forwards.

Introducing the new Mini Cooper Electric Hatchback 190kW John Cooper Works 54kWh 3dr Auto

New performance hatchbacks, like the new John Cooper Works Mini EV hatch, are exciting many UK customers in company car and salary sacrifice arrangements. The Mini EV is not a new hatch, having landed in the UK around 2021.

As part of updating and improving the brand, the MINI team updated their repertoire with a new Aceman  , Countryman  and also the Cooper hatch. To supplement the E and SE, we now have the ability to order a more speed and performance focused vehicle.

The JCW Mini will arrive with some great specification with the likes of the adaptive LED headlights, Mini HUD, John Cooper Works Sports Seats, Driving Assistant (for blind spot detection and rear assist), Comfort Access (keyless entry), electrically folding wing mirrors, heated steering wheel, heated front seats.

Other elements include the gloss black body kit, sport brakes, 18” JCW alloys, Mini interaction unit (a 24” OLED display), Harman/Kardon music system, air condition and the JCW steering wheel. The colours include Chili Red, Nanuq White, Legend Grey, Blazing Blue, British Racing Green and Midnight Black. There is also an ability to have a black or red roof plus the addition of bonnet stripes.

How does the Mini Cooper JCW EV perform - is it a fun car?

John Cooper Works - the FWD option will have a 49.2 kWh usable battery which will offer 0 – 62 times of 5.9 seconds, 124 mph top speeds and 190 kW (or 255hp). Expect a cold weather range of around 150 miles with warmer weather allowing for 205 miles – a combined range of around 180 miles on a full charge.

On charging, the 11 kW AC max will allow 5 hour and 15 min 0 – 100% charging times with the 95 kW DC maximum allowing 29 minute 10 – 80% times. This has fuel equivalent of 148 mpg. A cargo volume of 200L is available with this car (or 800L with the seats down). This will have no Bidirectional charging capabilities. It can tow 750kg (braked and Unbraked). A Heat Pump is standard.

Need more help and advice on your new Cooper EV for 2024 or 2025?

Build your preferred option on the  MINI  website . Just get in touch with our team on 01942 910 001 or by emailing us at [email protected]

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