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Electric Car Leasing Guide

Electric vehicles are the fastest growing vehicle segment in the UK!

Electric Cars In The UK

There are over 70,000 plug ins, with the majority growth within the last 2 years.

The issues we face with traditional fuels contribute to global warming and urban air quality owing to the high CO2 emitted from petrols and high particulates and NOx (oxides of nitrogen) emitted from diesels.

Plug-in vehicles are a potential solution as they omit very low CO2 , Nox and particulates; in pure electric mode they produce zero tailpipe emissions

Environmental Impact

Plug-ins potential for zero pipe emissions provides significant benefits over diesel and petrol in urban driving conditions.

Zero emission vehicles can play a big part in clearer air which will help with the UK who is under pressure for missing EU limits in many UK cities, and the ultra low Emission Zones and Clear Air Zones being introduced in 2020.

From a high level sustainability perspective, plug-in vehicles can also provide solutions for:

Cutting the UKs dependence on fossil fuels
Reducing green house gas emissions

With the potential for local sustainable electricity generation, a zero carbon transport

solution could be provided.

Electric Car Legislation

There are two key elements of legislation that are driving low emission vehicles:

European CO2 emission limits i.e. currently all car manufacturers selling product in the EU must have a sales weighted CO2 average of 130g per kilometre or less, however by 2020 this needs to fall to 95g per km as demonstrated on the graph. This will be difficult to meet without plug-in technology. There is a similar limit for commercial vehicles.
Then there is the vehicle Euro Standards which are focussed purely on harmful tail pipe emissions. Cars are Euro 6 and commercials will be on Euro 6 by September 2016.

This legislation effectively means ‘do nothing’ is not an option.

Tax

CO2 based company car tax introduced 2002 and GradVED introduced 2001

Writing down allowances also based on CO2

Technology

There are 4 category of vehicles we’ll now look at in more detail:

Full Hybrid
Plug in Hybrid Electric Vehicle (P-HEV)
Extended-Range Electric Vehicle (E-REV)
Pure Electric

Full Hybrid Vehicles

The Full Hybrid, among “regular” hybrids (not including the plug-in variety) are the most fuel efficient. They are the most thoroughly engineered solutions which offer petrol and diesel engines with small battery/motor which recovers wasted energy when braking. It also provides additional power on acceleration, engine downsizing and 1 -2 miles pure electric mode at low speeds (10mph).

You cannot plug this vehicle in.

Full hybrids are more efficient because they can automatically choose to operate in series mode, parallel mode, or all-electric mode.

Plug in Hybrid Electric Vehicle (P-HEV)

P-HEV’s are purely plug in hybrid cars, most of which include the same technologies of a full hybrid, but they have an extra trick – a larger battery and an on board charger so they can be plugged in to the mains.

They can travel up to 30 miles in pure electric mode and travel at higher speeds than a full hybrid in electric mode (ie. 60mph +).

P-HEVs can reduce fuel costs dramatically because of the low cost of electricity relative to conventional fuel. Because they rely in whole or part on electric power, their fuel economy is measured differently than in conventional vehicles.

Pure Electric Vehicles

Exactly what it says on the tin. Pure electric vehicles only run on electricity and require charging from an external source. The vehicle must always have charge otherwise when the battery‘s charge is exhausted flat the vehicle will not run, hence there is a potential for range anxiety.

Pure Electric vehicles are best suited for lower mileage urban driving, where zero tailpipe emissions have maximum effect on reducing poor urban air quality.

Range is typically limited to 65 – 100 miles maximum per charge but the range a pure electric vehicle can travel is increasing, so pushing into extra urban drive cycles - Tesla 250 miles+

Examples of current Plug In cars available to quote

Pure Electric Vehicles

(Pre qualification required) - Nissan Leaf, Peugeot I-On, Citroen C-zero, Mitsubishi i-Miev, Renault Zoe, BMW i3, VW Golf e, VW e-UP, Ford Focus Electric, Smart ForTwo electric, TESLA Model S and Model X, Mercedes B Class EV, Kia Soul EV

Extended-Range Electric Vehicles (E-REV)

BMW i3 Range Extender

Plug-In Hybrid Vehicles (P-HEV)

Volvo V60, Plug-In Prius, Porsche Panamera S E-Hybrid, Mitsubishi Outlander P-HEV, BMW i8, VW Golf GTE, Mercedes C350e & S500, Audi E-Tron, BMW 330e and

New Electric Car Lease Deals

Car Leasing continues to offer the same level of quality customer service, despite experiencing worldwide supply issues. You can still enquire about your next lease and we will help pick the perfect vehicle for you. Browse our deals and pre-order for a 2022 arrival today.

Why Choose A Plug In Vehicle?

Plug-in Vehicles Make Sound Environmental and Financial Sense. They are tax efficient and Government Grants are available up until March 2018.

In pure Electric Vehicle mode, plug-ins cost between 2-4 pence per mile to run.

SMR budgets can be as much as 35% lower for pure Evs.

The Government has a commitment to keep taxation on Ultra Low Emission Vehicles lower than for traditionally fuelled vehicles.

Financial

The UK governments initiative ‘The Office for Low Emission Vehicles’ (OLEV – part of the Department for Transport), provides a grant for all new eligible plug in vehicles to attract drivers to the market?

The grants available are based on the vehicle’s purchase price.

There are no grants available for cars over list price of £60,000 for Category 2 and 3.

Grants are already built into the quote system and dealt with at dealer level.

There are also Tax benefits associated:

Ultra Low Emitting Vehicles (ULEV) is currently only 7-11% BIK tax (dependent on whether less than 50g/km of CO2 or between 50 and 75g/km).
Benefit in Kind Tax on company commercial vehicles - Pure electric vehicles only pay 20% of the standard £3,170 BIK charge.
Zero VED for cars and commercial vehicles under 100g/km – 2017 will be zero for zero emission vehicles only.

‘Fuel’ cost for a vehicle running purely on electricity is typically between 2-4 pence per mile (ppm) as opposed to 9-11ppm for a best of breed diesel, 11-13 ppm for petrol

The Environment

Plug-ins can have Zero tailpipe emissions – important for improving urban air quality – 5 cities in the uk now having clean air zones implemented due to illigal levels of air pollution (exceeding eu pollution levels and responsible for thousands of deaths and serious respitory illnesses per year)

Potential for sustainable electricity generation – moving away from fosil fuels to sustainable electrcity generation such as solar/wind/hydro

Zero carbon potential - important in the decarbonising of the uk when electric generation is from green sources

Cutting dependency on fossil fuel – sustainable fuels can be generated locally and cleanly removing the reliance on imported fosil fuels often currently sourced from unstable supply chains

What to consider when going electric

Further consideration needs to be given for ‘fleet’ such as:

Charging and supplying charge points for drivers
Fuel re-imbursement (HMRC do not currently recognise electricity as a road fuel).
Design of company car choice list – WLC (whole life cost) is the preferred method i.e. EV up front cost is more expensive but running costs and fuel are cheaper over the life of the vehicle.

WARNING - Do not put PHVs on fleets just to minimise BIK, they must be used in the correct driving conditions and must be charged as often as possible

Electric Vehicle Considerations

Here's 3 key questions you should consider when leasing an electric vehicle.

It will be worse in colder and poor weather conditions – suggest 70% of the manufacturers official range quoted is realistic as the range will drop due to heater/headlights/windscreen wipers being used more.

We recommend a dedicated vehicle charging point at home and usually at work too.

Some manufacturers have limited service outlets at present.

Have more questions about leasing an electric car? Talk to one of our electric vehicle specialists!

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