Electric car lease review: the HYUNDAI IONIQ HATCHBACK Electric Premium SE 5dr Auto

Delivering the Hyundai EV

Electric, plug-in hybrid and hybrid technology is almost certainly on the increase in the UK as we make changes for a “combustion engineless” future by 2030 (or similar). Alternative technologies are on the increase, albeit in a slow and steady manner, as UK road users begin to warm to the idea of a car without pure petrol or diesel technology.

Thank you to our personal leasing customer, from Gateshead (Tyne and Wear), for sending through images of their new fully-electric car, the Hyundai Ioniq.

Can you lease an electric vehicle?      

It is, of course, possible to use contract hire and leasing to procure an electric vehicle (or eco car). Indeed, using this form of finance is perhaps safer for most customers, as we still don’t know the demand for used electric cars.

With contract hire you have the ability to return the vehicle at the end of the contract, so if there is an issue with electric vehicles (in general), this is a risk which is being passed across to the finance company. As such, for the more risk-averse out there, leasing an electric vehicle may be a safer route than a purchase-style product. Also, for most limited companies, this will be a far better route for tax/cash-flow and risk.

So, why are more customers looking to lease an electric car?

The pressure on automotive manufacturers has been increasing, as world attitudes toward climate change and the environment has changed substantially. In particular, our guarded attitude towards the oil industry has seen investment into alternative forms of energy in all walks of life.

Cars (and vans/trucks) are a huge contributor to pollution and they are now having to make significant changes. In the UK, one of the biggest driving factors for economical cars arises due to our tax legislation on company cars. When an employee enjoys a benefit, they must pay benefit-in-kind (BiK) tax. With a car, the level of tax you pay centres around its emissions which is shown as “x” grams per kilometre. The more polluting the vehicle, the higher the rate of tax will be. Conversely, the less polluting a vehicle is, the lower the rate of tax will be.

Over the next 2-3 years, the Government have made some significant changes that will bring about a big increase in the demand for alternative vehicles. For example, a car emitting zero emissions (i.e. an electric car) will attract 13% in 2018/19, and 16% in 2019/20. BUT from 2020/21, an electric car will attract a 2% BiK rate. For many company car drivers, this will reduce their monthly tax bill by 60-90%! Does this mean all company cars will be electric by 2020? We shall soon find out.

In addition to the above, there is further demand on manufacturers that has arisen under new testing procedures – the Worldwide Harmonised Light Vehicles Testing Procedure (WLTP). As a result of a number of scandals pertaining to emission and MPG statistics, from September 2018, car manufacturers have to go through much more rigorous testing standards. From September 2019, this will apply to light commercial vehicles (LCVs).

Unsurprisingly, the higher testing standards has seen some vehicles increase the level of CO2 per km and decrease their combined MPG. Added to this is the real driving emissions (RDE), which will measure pollutants like NOx. This is placing huge obligations on manufacturers in respect of combustion engines.

But is there a good reason to choose an EV if you are a personal customer?

For personal customers, using a car allowance or just their own income, you might think that there is no requirement (or benefit) for an electric vehicle. In truth, this statement is not without credence and there is some conjecture that the Government needs to do more to encourage personal drivers to consider electric vehicles (such as free insurance, income tax breaks and free charging points?).

There are a number of simple incentives which the Government could introduce to make private car users consider this type of vehicle, other than the fact there will be zero fuel bills and zero road fund licence.

For those drivers living in the London area, there may be some additional benefit to using an electric vehicle. The Transport for London (TfL), have a number of Congestion Charge Zone (CCZ), Low Emission Zones (LEZ) and Ultra Low Emission Zone (ULEZ) policies in place. For example, the CCZ operates between 7am and 6pm Monday to Friday in certain areas, so that drivers pay £11.50 per day to move around this zone. However, there is no payment required if your car or van emits 75g/km or less. For electric vehicles, this means that no charge is payable (please note you need to register your vehicle for this).

To supplement this, LEZ and ULEZ are either in operation, or about to come into operation. These zones will operate 7 days a week and 24 hours a day. Again, polluting vehicles will pay considerable fees for operating in these areas. What needs to be made clear is that this type of emissions charging will come into effect across other cities – Manchester, Leeds and Liverpool are already investigating this. Some drivers will either have to seek public transport or electric vehicles in order to avoid these charges moving forwards.

Are we ready for a green future?

Alternative fuel cars, particularly fully electric vehicles, are still a new concept in the UK. However, attitudes are definitely changing and we are seeing an increasing number of enquiries into electric vehicles. Manufacturers are now throwing resource into these cars, which means a) a better product; and b) better prices. With options such as the Kia Niro, Kia Optima, Mitsubishi Outlander, Mini Countryman, Hyundai Ioniq, VW e-Golf,  Jaguar I-Pace, Tesla and Hyundai Kona, the customer is almost spoiled for choice.

Standard equipment for the Ioniq Premium SE 

In terms of the car shown here, the HYUNDAI IONIQ HATCHBACK Electric Premium SE 5dr Auto, this is based on the following configuration:

• Pearlescent - Lava Orange
• Leather – Black
• 16” Alloy Wheels
• 7Kw Charger

As standard this car includes automatic rain sensing wipers, heated rear windscreen, solar glass with shade band, electronic parking brake with auto hold, hill start assist, Apple car play/Android auto, Bluetooth, adaptive cruise control with stop and go, blind spot monitoring, front and rear parking sensors, lane departure warning system, lane keep assist, parking guidance system, cross traffic alert, rear view camera, 8” touch screen nav, wireless charging plate, electrically adjustable and heated door mirrors, body coloured externals, Infinity sound system, automatic headlights, door mirror puddle lights, LED headlights/daytime running lights, air conditioning, leather glove box, leather upholstery, autonomous emergency braking, 16” alloy wheels, keyless smart entry with push button start, heated front and rear seats, driver’s electric lumbar support, ventilated seats, and alarm/immobiliser.

With the exception of colour, there are no additional factory options which you can add to this vehicle.

Charging the Hyundai Ioniq

Technical data on the Hyundai EV

On the technical side, company car and business users can note the P11d at £31,571 and CO2 at 0g/km. The 28kWh battery (with an 8 year/125,000 warranty) offers 120ps, 0-62 times of 10.2 seconds and will offer a range of circa 175 miles on a full charge. Service intervals on an electric Ioniq are every 12 months or 10,000 miles, whichever lands sooner.

So, would you select the electric Ioniq as your next electric car leasing option?

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