HYBRID

Lexus is revolutionising motoring with the world's largest range of hybrid (petrol/electric) cars developed to improve fuel economy and reduce emissions thereby cutting fleet operating costs, company car driver benefit-in-kind tax bills and company National Insurance contributions.

The four-derivative RX 400h SUV, a world first in the sector, and
GS 450h, the world's first high performance hybrid luxury saloon, have more recently been joined in UK showrooms by the flagship
LS 600h.

The Lexus hybrids are powered by both a petrol engine - the LS is powered by a V8 5.0-litre, the GS by a 292 bhp 3.5-litre V6 and the RX by a 212 bhp 3.3-litre V6 - and an electric motor. The nomenclature - 600h, 400h and 450h - has been arrived at by combining the power from the petrol engine and electric motors to give performance equivalent to conventional V12, 4.0-litre and 4.5-litre powered vehicles respectively.

The hybrid technology means that typically both the RX 400h and the GS 450h have the fuel economy and CO2 emissions of a 2.0-litre four-cylinder compact saloon. CO2 emissions are 192 g/km and 186 g/km with combined cycle fuel economy figures of 34.9 and 35.8 mpg respectively. Meanwhile, the LS 600h, the most recent addition to the hybrid line-up, has fuel consumption and emissions that are on a par with the segment's best performing - and substantially lower powered - diesels (30.4 mpg and 219 g/km in combined cycle driving).

In financial terms that translates into:

• Benefit-in-kind tax savings for company car drivers when compared with conventionally-powered SUVs/4x4s and luxury sports saloons from other marques;

• Reduced Class IA NIC for businesses who pay at the rate of 12.8% on the cash equivalent of the benefit of the car;

• Reduced Vehicle Excise Duty as the Government's graduated road fund licence system rewards lower emission vehicles;

• Fuel economy savings against rival petrol-engined models, crucial with pump prices at or close to record levels and expected to increase over the coming months;

• And the Lexus models still qualify for 100% discount on the £8 London congestion charge thus saving £1,600 per year based on 200 visits per annum.

And the attraction of hybrids has increased with newly-elected London Mayor Boris Johnson reversing his predecessor Ken Livingstone’s plans to withdraw the Alternative Fuel Discount, which gives hybrids 100% congestion charge exemption.

However, for businesses and company car drivers the financial advantages of hybrids are two-fold – benefit-in-kind tax savings for drivers with resulting Class 1A National Insurance savings for companies and reduced fuel bills.

Lexus National Corporate and Remarketing Manager Andy Simpson said: “For company car drivers making savings in benefit-in-kind tax bills is essential. This is where the Lexus hybrids come into their own as in 2008/09 comparative vehicles emitting above 235 g/km of CO2 are subject to the top 35% rate.

“Not only do the RX 400h, GS 450h and LS 600h, have significantly lower CO2 figures they also qualify for a 3% discount putting both vehicles in an ultra-low tax class given their performance and saving drivers hundreds of pounds a year compared to their polluting rivals from the likes of BMW and Mercedes.” 

Benefit-in-kind tax on the RX 400h SE (P11d price is £39,450) is £302.45 a month for a 40% taxpayer in 2008/09, while on the GS 400h SE (P11d price is £42,995) the tax bill will be £315.33 a month. That compares with, for example, a high-rate taxpayer paying £474.89 a month on the BMW X5 3.0d SE (P11d price is £40,705) or £431.86 a month on the Mercedes-Benz E350 Avantgarde (P11d price is £38,105).

Moving up to the LS 600h (P11d price is capped at £80,000) the monthly benefit-in-kind tax bill is £746.66, while for the rival Mercedes S500 (P11d price £70,620) it is £823.90.

By way of a fuel comparison the flagship Lexus returns an average of 6 mpg more than the Mercedes at 30.4 mpg compared with 24.1 mpg, while the GS hybrid returns almost 36 mpg and the RX 400h almost

35 mpg.