Electric car lease review: the Tesla Model S 90kWh Dual Motor 5dr

What is the best electric car to lease? How does this benefit me and the company?

Our e-car leasee team have been stressing that 2019 represented a seminal year for all things electric in the car world. This is the first year that we have seen mass production of electric cars across a plethora of manufacturers.

Additionally, there has been an incredible volume of publicity and information being supplied for electric cars and this is bringing the philosophy of electrification into the everyday lives for most people across the UK.

Less and less we hear “electric cars are just a fad” or “electric cars will never work”.

The reality is that they are here and will be a backbone of our fleets for the next 10-15 years until hydrogen fuel cell technology improves at the same rate.

The Model 3 at the e-car lease premises

So which electric car should I choose? 

As at 2019, the main contenders for the electric car lease deal of the year has to be (and in no particular order):

1. Tesla Model 3 
2. Jaguar I-Pace 
3. Audi E-Tron 
4. Kia e-Niro

While the Model 3 has been the most searched for car leasing deal of 2019, it is fair to say the I-Pace has been selling in some steady numbers, and with our recent deals pushing this closer to £399 per month, you can see why many businesses are going for the car.

Who installs the e-car lease charge points?

Thank you to our charge point installation company, Raw Charging, for visiting the team in their Tesla!

As a leasing broker, not a lender or supplier, we work alongside a number of charge point installation companies who can install a charge point at your home or business address. While we cannot recommend a company, we have chosen to introduce you to Raw Charging initially, as their ChargePoint product has proved to be very popular with both personal and business customers. For company car drivers, the ability to monitor charging and the costs associated with it make this very easy to reclaim fuel expenses.

As there is currently no BiK on the electricity for your car, this is a great solution for the individual driver.

So why should a company allow electric cars on their fleet?

How does contact hire benefit them? For the risk-averse amongst you, contract hire presents the safest and most affordable solution to use a car for a fixed period of time and return it at contract cessation. If the car isn’t suitable or if the market changes its view of valuation, this is an issue and risk for the finance company and not the end user.

Leasing is a non-ownership product and does not implore you to purchase the vehicle. On the other hand, if a car appreciates in value and turn out to be a valuable asset, this is something which the finance company will enjoy.

For a company, contract hire is a tax-efficient product in that vehicles which emit less than 110g/km of CO2 are able to claim back 100% of the rentals against corporation tax.

So long as the company is VAT registered, it can claim up to 50% of the VAT on the rentals and 100% on the maintenance provisions. In operating electric vehicles, the company enhances corporate image. We exist in a more socially and environmentally conscious era and the decisions a company takes with regards to fuel choice could be instrumental in its long-term health and success.

For the end user, company car tax is a major issue when operating a combustion engine. Even efficient/eco cars, which emit 100g of CO2/km, will bring about a BiK rate of 25%. Add to that a 4% diesel supplement for those cars which exceed RDE2 standards and you have an incredibly expensive proposition for the end user.

In some cases, the tax a driver pays is more than the rental the company is paying for the car itself. This is forcing many drivers to opt out the company car scheme and pursue a company car allowance instead. To assist in the growth of electric and PHEV car solutions, not to mention to combat against the introduction of emission and clean air zones, the Government/HMRC have changed their approach to company car tax for pure electric vehicles and PHEVs.

Moving forwards, a purely electric vehicle will have 0% Bik for 2020-21, 1% for 2021-2022, and 2% for 2022-23. For most PHEVs, this will be between 6 -12% BiK (so long as they can travel on pure electric for up to 30 or 70 miles).

Many company car drivers are therefore pushing their management and fleet management to consider these solutions. There are obvious concerns about monthly cost to the company, charging in structure and range anxiety, but there is a great case for this fuel type to now be a key consideration. If you’re concerned about which fuel you should choose, check our fuel guide.

If you need to know more about operating an “e-vehicle", just get in touch with the team.

Standard equipment for the Tesla Model S

In terms of the car shown here, the Tesla MODEL S HATCHBACK 90kWh Dual Motor 5dr Auto, this is based on the following configuration:

• Deep Blue Metallic Paint
• Leather – Tan
• 21″ Turbine silver alloy wheels
• Figured ash wood trim

As standard the car includes a glass roof, 19” alloys, 7 speaker sound system, LED headlights, rain sensitive wipers, solar reflect windscreen, collision mitigation braking system, emergency brake assist, Bluetooth with voice control system, blind spot monitoring, cruise control, lane departure warning system, parallel parking assist, parking sensors, reversing camera, 17” touchscreen, real time traffic information, satellite navigation system, electric folding/heated door mirrors, body coloured externals, LED daytime headlights, climate control system, 3-spoke multifunction system, heated steering wheel, LED reading lights, security pack, 60/40 split folding rear seats, keyless entry, immobiliser and anti-theft alarm.

In terms of additional specification to add to the vehicle, consider enhanced autopilot, a fixed panoramic glass sunroof and leather upholstery.

Technical data on the Tesla Model S

On the technical side, company car and business users can note the p11d at £90,380.00 and CO2 at 0g/km. The 90kWh lithium ion battery should offer a range of just under 350 miles (EC), 4.2 seconds to 62 mph, 8-year battery warranty and charge times of 11-15 hours on a 7kW – 5-6 hours on a 22k – 80 mins on a 50kW charge point. Each mile will cost you between 4-5 pence. Check service intervals with Tesla or the finance company if you have a driver-maintained agreement. The service/maintenance approach constantly changes.

So, would you select the Model S Tesla are your next executive electric car leasing option?

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