The ultimate prestige or luxury car to lease? In the SUV leasing market, the Range Rover Sport surely has to be a key part of the mix. In the last 10-15 years, this has been one of premium brands for customers to buy or lease who have a healthy budget. However, it is not without competition; the Porsche Cayenne, Bentley Bentayga and Lamborghini Urus have truly thrown some curve balls.
The move towards SUVs in the mass market has clearly influenced other manufacturers and many of the supercar brands are moving into the SUV style of vehicle. Customer appetites seem to suggest this is the future of the UK automotive industry. However, the quick growth of electric vehicle may also add some interesting propositions for customers as many brands are now moving to Petrol Hybrid Electric Vehicles (PHEVs) and Pure Electric Vehicles (EVs).
One of the most searched for, and popular, luxury vehicles to lease is the RR Sport P400e, which is a petrol combustion engine coupled with a lithium-ion battery.
With Porsche committing to electrification, other manufacturers will soon follow, as the 0% BiK from April 2020 is an exciting proposition for the wealthy business owner. Essentially you can have your cake and eat it too – luxury car, SUV, tax deductible and zero company car tax.
What isn’t there not to like??!!
For any customers interested, the car shown is readily available with one of our fellow leasing brokers. If you are interested in leasing this stock car, just let us know and we will happily send your details to them.
So should I go into a PHEV SUV as my next company car? Does a PHEV mean no company car tax to pay? To start with the basics, when you have a company car this is not “free” to you as an employee.
While the company will pay for your car, the maintenance and insurance (and maybe fuel), this does have cost consequences for you from a tax perspective.
Whenever you are researching a company car, you need to know the P11d value (the recommended list price plus any addition specification and delivery costs) and the C02 (effectively the emissions of the vehicle). For luxury cars, these can be cost prohibitive for many directors and employees because they have higher P11d values and emit more emissions; also the income tax level of the driver is relevant and many luxury car owners are in the 40% tax bracket (or higher). Over the last five years, many customers have transitioned to personal car leasing products and utilised a company car tax allowance, as this was far more cost effective and tax efficient.
While we did lease a number of cars of this ilk, the trend has very much been on a personal basis.
However, the Government and HMRC may have provided some way for these vehicles to find their way back into the company car arena. From April 2020, the seminal year for all things electric, there will be huge changes. In particular there will be zero tax payable if you operate a purely electric vehicle i.e. one without a combustion engine. For any customers in the SUV market, the Jaguar I-Pace, Audi E-Tron and Mercedes EQC are great EV SUVs to look at if you do want to minimise your personal tax exposure.
So what about a PHEV driver – can they benefit from the zero tax?
To help customers understand at the vehicle, a PHEV uses similar technology to the hybrid vehicle (self-charging or mild) with the exception of having bigger battery capacity (but which is smaller than an EV). 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. Additionally, the vehicle will have a petrol or diesel combustion engine. T
he key difference is that a PHEV needs to be directly charged in order to benefit from its capabilities. Like the hybrid, drivers do not suffer from “range anxiety” with a PHEV as the combustion engine will operate when there is insufficient electric charge.
Unlike a hybrid, which can often be referred to as “self-charging”, the PHEV relies on the driver physically connecting the vehicle to a charge point. If you do not charge the battery, the vehicle will operate on the combustion engine element only.
This will result in the vehicle failing to achieve the stated combined MPG figures and the vehicle will never benefit from the electric-only component.
So how do I charge my PHEV? Some vehicles can be connected to the home via a 3-pin socket. However, due to battery developments many customers are now investing into dedicated charge points. At present, the Government will provide an individual or business with a grant towards the cost for the purchase and installation of a dedicated charge point.
Some Local Authorities may support businesses to acquire charge points as part of infrastructure improvement. Any personal or business customer should research this before they purchase their charging infrastructure.
With a PHEV the key point to consider is that the vehicle must have sufficient charge to operate correctly. Planning where the vehicle will be charged is crucial for you (or the business) to maximise the benefit. If you have off-road parking, a dedicated home charge point is the most practical way to ensure access to a charging facility. In the alternative, your employer (or business) may provide a charge point at the offices or premises you operate from. With further investment occurring more charge points are appearing at petrol stations, service stations and stand-alone vehicle charging centres. However, charging a vehicle at an external point may be more expensive than at home or business, so this should be factored into your whole of life cost analysis.
There are a number of charge point solutions you can consider. While these are continuing to develop, the ones to consider are categorised as the following:
Slow (3kW);
Fast (7-22kW);
Rapid (22-50kW); and
Ultra-Rapid (50 kW+)
So taking all of this into account, does company car tax help me with a decision? Moving forwards the rules are going to be dictated by how far the vehicle will travel on an electric charge. For example, if the vehicle can travel 130 miles in April 2020 there will be 0% BiK, for those travelling 40-69 miles it will be 6% and for those covering less than 30 miles this will be 12%. Do not presume your PHEV is going to result in 0% tax; it will inevitably provide a better position than a usually petrol or diesel vehicle but it won’t be in the same category of an EV.
For the latest information, head across to our alternative fuel website at – https://www.carlease.uk.com/car-e/
In terms of the car shown here, the Land Rover Range Rover Sport Estate 5.0 V8 S/C Autobiography Dynamic 5dr Auto, this is based on the following configuration:
SVO ultra metallic gloss – Velocity
Perforated Semi-Aniline leather – Ebony
Ebony/eclipse seats with ebony/eclipse interior and ebony headlining
Colourway – Ebony/Eclipse
21″ 9 spoke gloss black alloy wheels – style 9001
Heated and cooled front and rear seats
Smart phone pack – Range Rover Sport
Extra large additional washer bottle
First aid kit
Contrast Roof – Narvik Black
As standard the car includes lane departure warning, matrix LED headlights, Meridian 825W surround system, sliding panoramic roof with sunblind 22-way electric adjustable driver and passenger front seats with 4-way lumbar support, contract roof, rear view camera, climate control, head and collected front seats, red brake callipers, 360 parking aid, adaptive cruise control, front centre cooler compartment, acoustic laminated front windows, heated windscreen with washer jets, CBC, DSC, emergency braking, gradient acceleration control, hill descent control, hill launch assist, roll stability control, adaptive dynamics, front and rear carpet mats, electronic air suspension, Bluetooth, InControl tracker, remote premium, traffic sign recognition, mist sensors, powered gesture tailgate/boot lid, TFT virtual instrument panel, auto dimming rear view mirror, power folding/auto-dimming/heated door mirrors with approach lights, DAB radio, InControl protect, illuminated tread plates, adaptive brake lights, fog lights, LED rear lamps, extended leather upgrade, heated steering wheel, multifunction steering wheel, sport pedals, ambient interior lighting, 2-way front head restraints, 60/40 split folding seats, keyless entry, trailer stability assist, intrusion sensor and immobiliser. In terms of additional options, consider – privacy glass, head up display and the activity key.
On the technical-side, company car and business users can note the P11d at £95,260.92 and CO2 at 291g/km. The 8-speed 5000CC V8 petrol engine delivers 22.1 combined MPG, 525ps and 0-62 times of 5 seconds. The service intervals on a petrol Range Rover Sport are every 12 months or 16,000 miles whichever lands sooner.
So would the Range Rover Sport be your choice or which luxury SUV you would select as your next car leasing option?
