Charging more — beat the plug-in car grant deadline and save £5,000

Are you considering having an electric vehicle? If so, you have until 29th February to maximise the potential savings!

While the government has pledged support to Ultra Low Emission Vehicles (ULEVs) till 2020, the grant for plug-in cars will reduce from its current level of £5,000 from 1st March 2016.

However, if your car is ordered by 29th February, you will still qualify for the full £5,000 grant, as long as delivery is within the next 9 months.

From 29th February, there will be 3 categories of grant, defined by range and CO2 emissions, unlike the current flat structure for all car ULEVs with emissions below 75g/km. This means the grant could reduce to £2,500 (e.g. if the ULEV car has emissions of 0g/km and a range of 10-69 miles). Furthermore, vehicles costing over £60,000 will no longer be eligible for the grant.

To match, there are three types of ULEV, defined as you’d expect, by their power source:

Battery Electric Vehicles (BEVs)

• Power: fuelled solely by electricity provided by a rechargeable battery.
• Tailpipe emissions: zero
• Example cars: BMW i3, Nissan LEAF, Renault ZOE, Volkswagen e-Golf and e-Up!
• Example vans: Nissan e-NV200, Nissan e-NV200 Combi and Renault Kangoo Van ZE

Plug-in-Hybrid vehicles (PHEVs)

• Power: these supplement their battery with a combustion engine. They have more limited electric range, and the combustion engine drives the wheels at higher speeds and when the battery is depleted.
• Tailpipe emissions: around 40-50g/km CO2
• Example cars: Audi A3 Sportback e-tron, BMW i8, Mitsubishi Outlander PHEV, Toyota Prius Plug-in Hybrid, Volkswagen Golf GTE
• Example vans: Mitsubishi Outlander 4Work

Extended Range Electric Vehicles (E-REVs)

• Power: having the benefits of a PHEV but promising greater efficiency via a larger capacity battery plus a combustion engine to recharge the battery once exhausted.
• Tailpipe emissions: around 20-30g/km CO2
• Examples include: BMW i3 with optional range-extender and the Toyota Prius Plug-in

Holding charge… holding value?

Key drivers for leasing these vehicles are firstly the initial purchase price – generally more than the marque’s combustion engine version… but also the depreciation.

Electric-only vehicles fare worst with 3yr/36,000 mile resale values averaging around just 17% of the initial cost – reflecting a lack of confidence in used purchases, and revealing a hidden factor which ups the overall cost of ownership when bought from new.

The real performers are the Petrol/Electric Hybrids – the latest data from CAP showing them to outperform traditional fuel cars and thus being the smart, green choice in every sense.

SUV:46.6%
Petrol/electric hybrid:39.3%
Diesel:38.9%
Petrol:38.3%
Electric:17.1%
3yr/36,000 mile residuals

Combine that with the financial benefits of a ULEV:

• Fuel costs as low as 3p per mile
• Low Benefit In Kind (BIK) rates (good for company drivers)
• Exemption from Congestion Charge
• Exemption from Vehicle Excise Duty (Car Tax)

…and you really can drive with your head as well as your heart!

Purchase or Lease?

Given lease costs are based on a vehicle’s depreciation, the better it holds its value, the lower the lease payments. And, given the higher initial purchase prices of these vanguard vehicles, leasing makes sense every which way – these vehicles are as economical on your wallet as they are on fuel.

If you’d like to discuss this further, or for advice on sourcing ULEVs, call us on 01753 851561, send us an enquiry online here, or try our Configurator, and spec up your ideal ULEV lease car or van.

Remember, if you place your order before the end of this month, you’ll benefit from the full £5,000 government grant. Demand for vehicles and grant applications is already heavy, so if you’re interested, do get in touch!

Further reading:Full details of the new grant changes
Full list of vehicles eligible for the grant
Learn more about ULEVs here