What are those cars you have to plug-in? Do all hybrids have to be petrol? Do all hybrids save me money on my company car tax bill? Following on from our recent blogs, we touched on Jaguar Land Rover’s (JLR) recent struggles which was formally announced yesterday in the form of a £3.6 billion loss.
What we were discussing is that their recent downturn is not all linked to the “Brexit” hysteria which the UK has been undergoing for the last 12 months or so. The issues are far more complex than that.
We were looking at the changing attitudes to fuel, environment and regulatory policies, growing economic pressures on households and company car tax as reasons for manufacturers having to carefully consider their operational markets.
It is very east to underestimate how much pressure is on a manufacturer to shift production to the new forms of fuel and to meet the stricter guidelines being placed upon them; WLTP is one such measure.
So why are changing attitudes to fuel choices affecting manufacturers and what is this shift?
This particular Ionic is what we would term a Plug-In Hybrid Electric Vehicle or a PHEV for short.
Does this need to be “plugged-in”. Absolutely yes – a PHEV needs to be directly charged via an external source in order to utilise the vehicle’s capability fully. Unlike a hybrid (a self-generating hybrid) there is more responsibility on the driver to ensure they are managing the battery charge effectively. Using similar technology to the hybrid, the PHEV offers bigger battery capacity (but which is smaller than a pure electric vehicle).
This allows the vehicle to be driven for a modest amount of time on its electric element – 15 to 30 miles depending on the make and model.
However, this very much relies on the driver actually connecting the vehicle to a charge point. For customers with an off-road parking situation, there are now a number of companies offering home charging point solutions (3 or 7kW):
Rolec – https://bit.ly/2v1sOxu
Pod Point – https://bit.ly/2DbcU7P
EV Chargers – https://bit.ly/2G9LuDx
For those without a charge point to access at home, you really do need to consider how the vehicle will be charged properly. In some cases, employers are now installing charge points at their HQ and are offering free-charging to employees (this is not a taxable benefit currently). Local authorities are putting together grants to help businesses put in place fast charging solutions i.e. 22kW.
The rapid chargers can offer up to 80 miles worth of charge per hour.
If you do want your own charge point, which is really the way to go, you can benefit from a Government Grant of up to £500 towards the product and installation.
The companies above will help you with all of the paperwork if this a concern to you. Essentially, you will only pay the difference between the grant and the installation/product.
Charging your vehicle is crucial We cannot stress enough that a PHEV needs to be charged effectively in order to get the most out of the electric capability. Too often you will hear about customer covering long journeys and complaining that the vehicle does not provide the quoted MPG. In some situations this is because they are either not charging the vehicle properly, or at all.
Some finance companies are reporting that cables have been left in the their original packaging!
The fundamental idea is that the shorter journeys should be covered by the electric component on its own and the longer journeys can use the two together or, where there is insufficient charge, the combustion engine only. However, with many PHEVs being petrol, if you are a high-mileage driver you will be relying on an inefficient engine and instead of 150MPG you will get more like 30MPG.
As part of improving this, manufacturers like Mercedes are putting together a diesel PHEV which is capable of offering more efficient long-time driving experience on the combustion element and electric-only on the stop/start city and urban driving.
So will the PHEV help me with my company car tax? In addition to helping drivers manage emission zones charging, for those customers who have a business contract hire arrangement these vehicles will offer an improved position on their tax.
As a company car is an emissions based tax regime in the UK, the lower the CO2 per KM, the lower the BiK % will be .
As many PHEVs offer between 25 and 40g/km they help customers save between 5-15% on BiK compared to a normal petrol or diesel combustion engine alternative. The company also can reclaim 100% of the rentals against corporation tax as this falls below the 110g/km threshold. However, you need to ensure that your company will allow you to procure this vehicle, as this may fall outside the normal rental banding policies (PHEVs are more expensive than combustion or self-regenerating hybrids).
You also need to ensure your driving behaviours are suitable; if you are a high-mileage driver covering in excess of 25,000 miles per annum, the fuel position may be detrimental compared to a diesel vehicle. As there are limited diesel PHEV options, you may need to stick with a normal diesel option until there is more choice.
In terms of the car shown, the Hyundai IONIQ SALOON 1.6 GDi Plug-in Hybrid Premium SE 5dr DCT, this is based on the following configuration
· Polar white Solid Paint
· Leather – Grey with blue stitching
· 16″ alloy wheels
As standard the car includes automatic defog system, heated rear windscreen, solar glass with windscreen shade band, Hill start assist, traction control, Apple CarPlay/Android auto, Bluetooth, Adaptive cruise control, attention assist, blind sport monitoring, front/rear parking sensors, lane departure warning system, lane keep assist, parking guidance system, rear cross traffic alert, rear view camera, 8” touch screen sat nav, smartphone wireless charging plate, auto dimming rear view mirror, body coloured externals, electric adjustable/heated/folding door mirrors, DAB, infinity sound system, automatic headlights, LED headlights/running lights, position lights, climate control, 7 pin charging cable, heated steering wheel, leather upholstery, autonomous emergency braking, driver’s electric lumbar support, 60/40 split folding rear seats, heated front and rear seats, ventilated seats, keyless smart entry, push button start, 16” alloys and alarm/immobiliser. There are no additional factory options you can add to the vehicle. You can have this specification or “downgrade” to the Premium.
On the technical-side company car and business users can note the P11d at £30,121.00 and CO2 at 26g/km. The 1580CC 6 speed auto petrol engine delivers 256 combined MPG (EC), 141ps and 0-62 times of 10.6 seconds. The service intervals are every 12 months or 10,000 miles on the PHEV Ioniq.
Find the best lease car deals on the PHEV Hyundai Ioniq @CarLease UK – or – check out more PHEV options below…