If you’re a business driver - or a potential business driver - looking to get the most bang for your buck, a plug-in hybrid company car might just be perfect for you.
Plug-in hybrids, or PHEVs, potentially offer the best of both worlds. On one hand, you get some of the lower tax benefits that come with electric cars. On the other, you still have the reassurance of a traditional petrol or diesel engine for those longer journeys. No range anxiety, no stress, just flexibility.
PHEVs combine three key elements: a regular combustion engine, an electric motor and a drive battery. Unlike standard hybrids, PHEVs have much larger batteries that you can charge up, just like in a fully electric car.
This means you can drive purely on electric power for around 30-75 miles, depending on the car; then when the battery runs out, the petrol or diesel engine takes over, so you’re never left stranded.
For company car drivers, the big win here is lower official CO2 emissions figures, which translate to seriously reduced benefit-in-kind (BIK) tax bills. To put things into perspective, many traditional petrol or diesel cars are taxed at around 27% of their value; with a PHEV you’re looking at anywhere between 6% and 15%, depending on the car’s electric-only range. The farther it can travel without using fuel, the less you will pay in tax.
Whether you’re clocking up motorway miles as a sales rep or looking for something a bit more executive as a CEO, there’s a PHEV out there for you.
Our choice: BMW 530e
The BMW 5 Series has been a company car star ever since the original E12 generation made its debut more than 50 years ago. Now in its seventh generation, this 'G60' version has swelled in size and stature, but behind the vast front grille and imposing proportions, it retains the same mix of talents.
Closer in size to the 7 Series luxo barge, the interior of the 5 Series is generously proportioned, slickly designed and packed with kit. The needlessly complicated infotainment will make you want to set fire to it, but the hushed refinement and exceptional comfort will help lower your blood pressure. And despite its land yacht exterior dimensions, the 530e handles with typical BMW adroitness, with meaty steering and just a smidge of rear-drive adjustability.
There are no diesel engines, but you can choose a number of mild-hybrid petrols and even the fully electric i5. However, we’d plump for the 530e plug-in hybrid that combines a turbocharged 2.0-litre petrol with a 181bhp electric motor for 295bhp and a 0-62mph time of 6.2sec. Better still, with a 19.2kWh battery, it’ll travel over 60 miles in EV range, meaning a tax-friendly benefit-in-kind (BIK) rating of just 8%.
Read our BMW 5 Series review
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You dont even have the car with the longest EV range on the list. Seems odd
As a UK taxpayer, articles like this seriously annoy me. My friend has a PHEV Audi, and she has completely given up plugging it in at all now, but obviously enjoys the tax benefits. You just know that all the Range Rover PHEVs never go anywhere near a plug.
Meanwhile, in other news, pensioners just over the pension credit limit have lost their winter fuel allowances.
Could relabel this article as tax dodger special, can't wait for them to get caught out and figures of 250 plus mpg are investigated by trading standards.