i3

ULEV grants to change March 2016
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Charging more — beat the plug-in car grant deadline and save £5,000
Charging more — beat the plug-in car grant deadline and save £5,000 https://wvl.co.uk/wp-content/uploads/ULEV-featured.jpg 660 300 Anthony Anthony https://secure.gravatar.com/avatar/a9c4089fd91833b9d9ac3cd2423e0fcb?s=96&d=mm&r=g

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

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Eco Feature: Going Green… and the new BMW i3
Eco Feature: Going Green… and the new BMW i3 https://wvl.co.uk/wp-content/uploads/i3.jpg 660 300 Anthony Anthony https://secure.gravatar.com/avatar/a9c4089fd91833b9d9ac3cd2423e0fcb?s=96&d=mm&r=g

When you consider that we live in an ever increasingly environmentally conscious society, it’s a wonder that people are seemingly so reserved when it comes to acquiring green cars.

In the UK motor industry just 1.5% of cars sold are accounted for by electric and hybrid cars and, although there has been slow and steady market growth at home, across the channel in Europe sales of green cars are down 5% from last year. Which begs the question, why?

The lack of sales is a conundrum that the government are keen to solve which has led to the Office for Low Emission Vehicles (OLEV) being granted a further £500million to develop a more effective strategy aimed at increasing the uptake of low emission vehicles. This is to be carried out in the 5 year period between 2015 – 2020.

To aid them in their task, OLEV have been seeking feedback from various external bodies as to how best to invest the money. Representatives from the BVRLA have stated that “more resource is needed to be put behind information campaigns and fleet training so that many misconceptions around electric vehicles can be corrected.” Among the suggested incentives that OLEV have been advised to implement are the following; tax incentives for companies to install charging points, reinstate 100% FYA for leased or rented ultra-low emission vehicles and to provide subsidised or free EV parking.

Trying to encourage consumers and businesses to acquire greener cars is nothing new: in 2002 the chancellor announced changes to company car tax with the main intention of encouraging employers and company car drivers to choose cars with low CO₂ emissions. The basic premise of the tax is: the lower the harmful emissions, the lower the tax. These company tax benefits are the primary reason that the majority of electric car sales in the UK are for fleet or company car use.

i3-montage

All eyes are on BMW’s i3
From a manufacturer’s point of view there has been a lot of excitement and hype around the newly released BMW i3. Having first released plans for the i3 in 2007 and having spent $2billion in development, the car is now being widely acclaimed for its innovation, with Topgear heralding it as a car that can ‘change open minds (with regards to green cars).’

BMW insist that the primary version of the i3 is the all electric model which has a range of between 80-100 miles, but there is also a range-enhancing version equipped with a petrol generator which, among other factors, is aimed at reducing range anxiety among drivers.

Since going on sale in September 2013, sales for the i3 have been very slow, with just 400 units being sold during November in Western Europe. However, experts say that this is not to do with consumer doubt and rather that BMW are consciously being slow in the production of the car for fear of their newly developed technology failing, resulting in numerous (rather embarrassing) recalls.

BMW have been quick to release confidence boosting figures of 10,000 orders having been taken around the world with a further 100,000 requests for test drives. Whatever the figures may be one thing is for sure: 2014 is going to be a big year for the i3… and a big year for green cars in general.

If you’re considering a greener option for your vehicle or fleet, call us to discuss the options, prices and benefits on 01753 851561.

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