LEXUS HYBRID - REDUCED EXPENSES AND EMISSIONS
Being greener doesn’t entail being meaner when fleet decision-makers consider their company car policy. In fact, drivers can have access to one of the most coveted fleet brands on offer.
Lexus Hybrid Drive is the fruition of 15 years of intensive research and development and has already resulted in three breakthrough Lexus models: the RX 400h SUV, the GS 450h performance saloon and the LS 600h luxury flagship saloon.
Together, the three models create the largest hybrid range available from any UK manufacturer to deliver a unique combination of low emissions, low running costs, low corporate and benefit-in-kind tax bills and an exceptionally quiet on-the-road performance that does not lack for power.
Compared to key rivals, they are incredibly cost efficient on the road. The Lexus RX 400h has a maximum speed of 124 mph and can reach 62 mph in 7.6 seconds, but returns 34.9 mpg on the combined cycle and has emissions of just 192 g/km. It falls into the 23% company car tax band, including a 3% discount, in 2008/9, because of its hybrid power train. That equates to a tax liability of £272 a month for a 40% taxpayer.
By contrast, a Mercedes-Benz ML350, which achieves 24.6 mpg and emits 275 g/km of CO2, would put its driver firmly in the 35% tax band, costing a whopping £447 a month in tax.
A comparison between the Lexus GS 450h and the BMW 540 SE auto is equally compelling.
The GS 450h achieves 35.8 mpg and falls into the 22% tax band, including the 3% discount, because it emits just 186 g/km. It costs a 40% taxpayer just £291 a month, but can hit 62 mph in 5.9 seconds and has a limited top speed of 155 mph.
The equivalent BMW 540 SE achieves 29.1 mpg and falls into the 34% tax band, because it emits 232 g/km of CO2. That costs a 40% taxpayer £455 a month. Furthermore, the BMW reaches 62 mph in 6.2 seconds.
There are even bigger savings in the boardroom, where the Lexus LS 600h falls into the 28% company car tax band because it emits just 219g/km. It achieves an astonishing average mpg of 30.4 and yet can hit 62 mph in 6.3 seconds. A 40% taxpayer would pay £746 a month in tax.
The equivalent Mercedes-Benz S500L achieves just 23.9 mpg and falls into the 35% tax band, with emissions of 281 g/km. Although it reaches 62 mph in 5.6 seconds, it will cost a 40% taxpayer £870 a month for the privilege.
In addition to the tax savings enjoyed by hybrid drivers, employers also enjoy reduced Class 1A National Insurance contributions, as they pay 12.8% on the value of the benefit-in-kind tax incurred by the driver.
But there aren’t just tax and fuel economy savings for drivers of Lexus hybrid vehicles.
For fleets operating vehicles that travel into London, the congestion charge is changing with any vehicle emitting more than 225 g/km facing a £25 entry fee from October 27.
However, for fleets already operating Lexus hybrids and those who acquire models before the existing system changes, the new rules continue to allow charge-free motoring in the centre of London until January 2010. Meanwhile, drivers of their more polluting rivals will be hit with the new £25 a day charge.
After the introduction of the new emissions-based charging system new Lexus owners will face an £8 daily charge to enter the charging zone, while all their rivals will be hit with still be paying the new £25 a day charge.
The combined savings from switching to hybrid power for drivers and employers add up to thousands of pounds a year and show that you really can save on financial outgoings as well as vehicle emissions.
