ELECTRIC VEHICLES (EV) & PLUG-IN HYBRIC ELECTRIC VEHICLES (PHEV)
With a shift in focus towards reduced pollution and fewer carbon emissions, manufacturers and companies alike are turning to alternative types of vehicles to help protect the environment and produce alternative modes of transport.
If you are considering moving to a green fleet, whether you lease your vehicles or purchase outright, then you will find the information and advice on this page useful.
HOW DOES LEASING AN EV OR PHEV WORK?
Hybrid and EV car leasing gives you a more affordable, cost-effective solution compared to purchasing the vehicle outright. These business benefits include:
- No financial risk of vehicle price depreciation
- Upgrade vehicles to a higher grade at the end of the lease
- Affordable monthly payments for effective budget forecasting
- 50% VAT can be claimed back if the vehicle is used for business and personal use, 100% can be claimed if the vehicle is only used for business driving
At the same time, when the lease period ends, we are very fair on our damage policy and can then get you into the very latest model, with the likelihood of having a better range per charge, fuel efficiency and technology.
GOVERNMENT BUSINESS GRANTS & INCENTIVES
As is the same with domestic-use EVs and PHEVs, there are grants and incentives available for businesses that wish to purchase these types of vehicles outright.
As we’ve previously mentioned, if your business is leasing the vehicle from a company such as ours, then you are able to claim a percentage of the VAT back.
If you are VAT Registered you can re-claim:
- 50% of VAT on the finance element, if the vehicle is used by an employee for business and personal use
- 100% of VAT if an employee(s) uses the vehicle solely for business use. The vehicle will be kept at the business, and would be classed as a “pool car”.
Available Government grants are split into categories, based on their overall CO2 emissions. The type of vehicle that is chosen will impact the grant that you could receive, so it’s important you consider this before making your final choice.
Recently the Grants changed (21st October 2018) as we have now reached Category 1 and 2/3 grants limits. In short any orders in Category 1 after 20th October 2018 will be processed under the new grant rates.
New Grant Rates – Category 2 and 3 vehicles will no longer be eligible for the grant and category 1 ( Cars) is now £3,500 which is the maximum grant available for cars.
Category 1 (NOW CARS) grant rate has moved to £3,500 – These vehicles have CO2 emissions of less than 50g/km and can travel at least 112km (70 miles) without any CO2 emissions at all:
- BMW i3 and i3s
- Jaguar I-PACE
- Nissan LEAF
- Peugeot iON
Category 2 vehicles are not eligible for a plug-in grant. These vehicles have CO2 emissions of less than 50g/km and can travel at least 16km (10-69 miles) without any CO2 emissions at all:
- Hyundai IONIQ PHEV
- Mercedes-Benz E350 e SE
- Toyota Prius Plug-ins
- Volvo V90 Twin Engine
Other categories include Level 3 (No longer eligible for the grant) – These vehicles have CO2 emissions of 50 to 75g/km and can travel at least 32km (20 miles) without any CO2 emissions at all:
eg Mercedes E350 e AMG Line or Mini Countryman PHEV
Electric and hybrid vehicles that are not eligible
Category 2 or 3 cars with a recommended retail price over £60,000 are not eligible for a grant. This includes:
- Audi Q7 (category 2)
- BMW i8 (category 2)
- Mercedes-Benz S500 Hybrid (category 3)
- Porsche Panamera S E-Hybrid (category 3)
- Range Rover P400e (category 3)
- Range Rover Sport P400e (category 3)
To find out more about all available Government grants and legislation, including vehicle categories and examples, click find out more.
WHAT ELSE DO YOU NEED TO CONSIDER?
ARE YOU CONSIDERING LEASING AN EV OR PHEV?
Then arrange a free call back today to discuss your exact requirements in more detail with a member of our team