Your definitive guide to the new MG5 Electric Car Lease

The new MG5 electric car lease - Your definitive guide

In some ways, you could call MG pioneers of cost-effective electric driving in the UK. While many of the early brands, including Tesla, have been focused on aesthetics, battery performance and driving experience (which cannot be discounted), there has been, in some ways, a shortage of cheap electric options to lease.

If we are to achieve our 2030 / 2035 net-zero ambitions, in-keeping with the UK Government policies, then a wide variety of BEV product does need to be made available to consumers, salary sacrifice schemes and business fleets. And MG motors, who are owned by Chinese giants SAIC, have continued the MG Rover tradition of quality affordable cars in recent years with their SUV MG ZS, hatchback MG4 and their updated estate shown here, the MG5. It would come as no surprise when we say this is now a go-to automotive for many of the e-car lease customers.

Where MG were somewhat revolutionary with their MG5, it was the first mass-market estate (or station wagon) to launch in the UK. Having being premiered in China in 2017, the car found its way to the UK for September 2020, with a 53 kWh 115 kW model (in Excite and Exclusive trims) plus an upgraded 61 kWh version for more range.

However, in 2021, an announcement was made by the group to say that the estate would receive a facelift to bring the styling and finish more in-line with the revised ZS and new MG4. In truth, the original MG5 was a little boring and rustic, whereas the new model (which is pictured here) definitely showcases modern touches and sleek aesthetics. And even now, at June 2023, the MG5 is still the ONLY traditional estate vehicle which you can lease or buy in the UK. But this will not continue forever, with stiff competition on route in 2023 and 2024. In terms of the best estate EVs to lease, choose from:

•  The Peugeot e-308 SW;
•  The Vauxhall Astra Sports Tourer Electric; and
•  The MG5 EV

And how does the new MG5 perform - what are the pros / cons? 

In terms of the stats, the 57.4 kWh usable lithium-ion battery will offer 0 – 62 times of 7.7 seconds, 115 mph top speeds and 115 kW (or 154 hp). This model is a FWD option.

Expect a combined winter range of 175 miles with warmer weather allowing for 235 miles. On charging, the 11 kW AC max will allow for 6 hours and 15 mins 0 – 100% charging times with the 87 kW DC maximum allowing 42 minute 10 – 80% times. As a robust estate, this has a generous cargo volume of 479L and vehicle fuel equivalent of 145 mpg.

This EV can tow 500kg braked or unbraked. And, this does have V2L (or vehicle-to-load functionality) of 2.2 kW AC, so you can use your car to charge other external electric devices like camping equipment or laptops / computers.

In terms of the Pros - the 11 kW AC charge speed is becoming an industry minimum, with some cars now moving to 22 kW AC. With faster AC now being available (as it is cheaper and easier to install), this isn’t something which should be overlooked.

There is no doubting that this is a robust and practical family car, with modest ranges and performance (a 7.7 second 0 - 62mph time is impressive!).  On Cons - 87 kW DC rapid charge is a little sub-standard and should really be more 120 - 150 for a modern EV. The aesthetics have improved but would you really choose this over an SUV with similar cargo capacity and style?

The UK’s automotive media have been fairly positive on this estate, with What Car? at 4/5, Auto Express at 4/5 and CarWow at 9/10. For the value, the e-car team cannot see customers being disappointed with this proposition.

The quandary for many business is whether or not they should buy or lease their new electric car (it’s one of the most popular questions our team get asked by companies). There is no hard and fast rule for the best finance method; often the conversation between accountants, finance directors and fleet managers will be to consider a financial and practical solution which will work out best for them.

With contract hire, the ability to use and return the vehicle, with no ownership obligation, is our most-popular method. As a contract hire and leasing broker, we introduce the business to the leading finance solution based on their term, annual mileage and initial rental (deposit requirements). For a limited company, who is VAT registered, contract hire (as an operating lease) allows 100% of all rentals paid to the finance company to be deducted from the corporation tax liability; whereas combustion options only allow 85% to be deducted.

Up to 50% of the VAT on the finance and 100% of the VAT on the maintenance aspect can be reclaimed. To be clear, Finance Lease will be treated the same as this is also an operating lease, with the exception of a final rental / balloon which must be satisfied at the end of the contract.

In contrast, purchase style products will allow a business to claim capital allowances, which is slightly different to the above. So if your business utilises hire purchase, contract purchase and lease purchase, this will apply to you. With capital allowances, cars which emit 0 g/km (no tailpipe emissions) will allow 100% of the full cost - to be claimed in addition to any annual investment allowance. For a company with particularly high profits, and therefore bigger tax exposure, the purchase style route is more efficient in year 1.

But, that isn’t to say it is more tax efficient, as contract hire will catch-up over time and when you sell your EV, you will pay tax on any of the profit the company makes.

As e-car lease are NOT accountants or financial advisors, we always recommend that you discuss the tax implications with a professional accountant. And remember, the price you pay per month will differentiate according to the finance product you utilise. So the tax may be more efficient but the value of the deal may not. Hence, consider all the facts before making the decision.

Is theMG5 electric car the best zero-emission Estate?

In terms of the car shown, the MG5 ELECTRIC ESTATE 115kW Trophy EV Long Range 61kWh 5dr Auto Electric, this is based on the following configuration:

• Piccadilly Blue Metallic Paint
• Leather Style - Black
• 17" alloy wheels

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A big thank you to Chorley Group one of our preferred MG dealers for our north-west customers, for suppling this EV for the team to review. If you are a retail or fleet customer looking for the best MG, Nissan, Kia, Hyundai or GWM Ora service, just speak to their electric experts.