Eco & Low Emission Leasing
We are now more conscious than ever on the impact we are having on our environment, and our choice of transport is a significant contributor to this.
For those who live in and around London, Transport for London are introducing the Ultra Low Emission Zone (ULEZ) to Central London in the same area as the Congestion Charge. Unlike the Congestion Charge, this will run 24 hours a day, 365 days a year from 8 April 2019. From 25 October 2021, this area will be expanded to inner London, within the North and South Circular Roads. Ultimately, vehicles will need to meet the new stricter emission standards in order to avoid paying the daily ULEZ Charge on top of Congestion Charge. Find out more on the ULEZ by clicking here.
But this does not mean that if you live outside of London you should not consider leasing an electric or hybrid vehicle. Advances in technology means that these vehicles are extremely cost effective, with very little running costs and road tax. On top of this, you can apply for the Plug-In Car Grant (PiCG.) Eligibility is broken down into categories:
- Category 1: Vehicles with a range of 70 miles making zero emissions, and a manufacturer quoted CO2 emissions figure of less than 50g/km.
- Category 2: Vehicles with a range of at least 10 miles making zero emissions, and a manufacturer quoted CO2 emissions figure of less than 50g/km.
- Category 3: Vehicles with a range of at least 20 miles making zero emissions, and a manufacturer quoted CO2 emissions figure of between 50-75g/km.
If your car qualifies for Category 1, then you can benefit from the PiCG maximum, which pays 35 per cent of the car's value, up to a maximum amount of £4,500.
Category 2 and 3 vehicles also qualify for a 35% reduction, but the maximum amount saved is just £2,500, which is £2,000 less than for Category 1 cars.
However, as of November 2018, the government have stopping giving out grants for hybrid vehicles. Instead, you are only eligible if your vehicle is fully electric.
On top of this, when taking out a hybrid or electric vehicle business contract hire/lease, you pay a substantial less amount of company car tax. For more information on company car tax when leasing, take a look at Pendle's helpful guide here.
