Why Are Fleets Moving Away From Electric & Plug-In Hybrid Cars?

Tuesday, 22. November 2016

Are electric cars the way forward? Clearly as far as the environment is concerned of course it is so why are many fleets taking them off their options list and consumers becoming reluctant to buy or lease them? Cost has always been a problem but the costs have been dropping whilst driving ranges increase.

So why are people not only refusing to take electric vehicles but also the plug in hybrids? The answer according to Business Car is charging points. There is still a grave lack of charging points but not only that, early points need to be replaced as many are no longer working and those that are, are simply inefficient or have the wrong connection points fitted.

The Government which was fairly and squarely behind this project has let the industry down according to experts, something that Transport Minister, John Hayes is well aware of. One of the issues that needs to be addressed is the mapping of charge point locations that was to be undertaken by Government. Not only the location but also which charge points were most suitable for which car.

In a survey it was found that only 25% of fleets offered a plug in model to its drivers whilst 69% of drivers said that they would be happy to drive an electric car. John Hayes has agreed to take the issues on board and look into the infrastructure as this is clearly a barrier to EV expansion.

He is also looking into driver education although I would suggest that this isn’t needed as drivers are very much in favour of electric vehicles. So if you are looking into an electric vehicle at the moment it may be worth some extra investigation before taking the plunge. By Graham Hill

GH Questions The Environmental Benefits of Plug In Hybrids

Thursday, 26. May 2016

There is no industry that I know that surrounds itself more with mystery and ‘smoke and mirrors’ than the motor and associated finance industry. Emissions, fuel consumption, APR, PCP, warranty the list goes on. These are all provided by manufacturers, dealers and funders in ways to totally mislead you.

We are now being fed a pile rubbish as we see the growth in plug in hybrid cars. We are told that they are great for the environment and you get a zillion miles to the gallon, as a result the Government gives you a chunk of money off the new car cost as they ‘apparently’ create less carbon dioxides than diesel and petrol engine cars.

We are told that the Government applies a grant of £2,500 if the electric part of the drive unit can achieve a range of up to 70 miles. More than 70 miles and you can have a grant of £4,500 but you have to bear in mind that the hybrid car is much more expensive than its petrol or diesel equivalent in the first place, certainly much more than the grant provided as an incentive.

Plug in hybrid electric vehicles (PHEV) look very impressive, low fuel cost and tax incentives are grabbing the attention of fleets as well as consumers but the problem is that not all drivers are driving these cars as they should be. The most common omission is the recharging of the car on a regular basis. This in itself can increase the whole life cost by 15% according to Wayne Millward, Fleet Consultant at contract hire company Arval.

For fleets the low benefit in kind tax is very attractive to employees but equally the employees aren’t that interested in efficiency. Even more so if fuel is provided as part of their employment package so they don’t ever plug in their cars to an electric charger. There are of course others who don’t have regular access to charging points, either at home or in the street where they park, making it virtually impossible to charge the batteries using the plug in option.

Either way, when the car moves over from the electric motor to the petrol engine, fuel efficiency plummets and CO2 emissions increase. So unless you or your company drivers use the cars as intended you could be vastly out of pocket. From a running cost point of view if a PHEV is not used as was intended the costs soar and the atmosphere suffers. You would be better off driving a normal diesel or petrol.

So why don’t the car manufacturers do anything to address this issue? I’ll tell you why, because the more hybrid cars they sell the lower the declared average CO2 emissions of all the cars they provide across Europe. In 2015 they had to get the average emissions down to 130g/km which most did.

However, this was based on the manufacturer’s claimed CO2 emissions for PHEV’s being included in the mix, assuming that the cars were regularly plugged into the mains. The fact is that very few were and is yet another con trick perpetrated by the car manufacturers as they know this is what happens! By Graham Hill

Sales Of Plug-In Hybrid Vehicles Taking Off

Thursday, 26. May 2016

The number of plug in car grants could reach the Government’s latest target much quicker than expected after 11,000 applications were made in February. The surge came about because the £5,000 Government grant was to be replaced by a new grant structure for Ultra Low Emission Vehicles (ULEV) as of 1st March.

The new structure, consisting of 3 tiers, is now in force. For cars with zero emissions and a range of more than 70 miles (category 1) there is a grant of £4,500 on offer from the Government. Vehicles with a lower zero emission range than 70 miles (category 2 & 3), such as plug in hybrids, with either a petrol or diesel engine there is a £2,500 grant.

There is also a price cap, so category 2 & 3 cars costing more than £60,000 will receive no grant although category 1 cars with a zero emission range of over 70 miles will attract the full £4,500 grant. According to the Office of Low Emission Vehicles (OLEV) a total of 16,000 low emission plug in vehicles were ordered in January and February compared to 14,500 for the whole of 2015.

So clearly zero and low emission cars are gaining acceptance helped along by some very attractive deals from the leasing companies. OLEV explained that the new grants are set to run till March 2017 or until 40,000 sales of category 1 vehicles and combined sales of 45,000 category 2 & 3 vehicles have been reached. To date a total of 67,000 grants have been provided and on current trends the Government targets could well be reached before the end of the year.

The Department for Transport would not confirm that due to the increased pace of hybrid and zero emission car sales they would review their targets but given their ultimate objective that all vehicles should have zero tailpipe emissions by 2050 it is highly likely that they will continue to encourage the sale of low emission vehicles with grants, albeit that they are likely to reduce in time.

On the other hand support is likely through improving lease rates as manufacturers aim to hit their lowering emission targets across their vehicle ranges. So if you are looking to help save the planet keep an eye out for my great hybrid deals as a preference to buying outright. There could be even greater savings than the grants offered by the Government. By Graham Hill

A BMW That Achieves 148 MPG!

Thursday, 25. February 2016

How do you fancy driving an executive car that achieves 148 miles to the gallon? Well you can with the new BMW 330e M Sport which we just happen to have on offer at the moment. It is BMW’s entrée into the Plug in Hybrid Electric Vehicles (PHEV).

Whilst the new tiered Government Grant scheme has dropped the grant from £5,000 to £2,500 it is still good value for money on a lease. You will need a means to re-charge the car from an electric charge point that can be installed in your garage (grants available) or via charging points now available at services on motorways, some hotels and on certain streets.

The electric motor starts you up and moves you off whilst the 2.0 petrol engine takes over to boost power or take over when the 87bhp electric engine starts to flag. In EV mode the car has a top speed of 80 mph but switch across to petrol and you increase the top speed to 140 mph. The car has all the usual refinement of a 330i but with all the economy of a hybrid, the general consensus is that the car is a definite winner leading the way for other hybrid cars across the BMW range.

Oh and another piece of breaking news, Transport Secretary, Patrick McLoughlin has announced plans to allow PHEV vehicles to have access to bus lanes in the eight Go Ultra Low cities across the UK as part of a £40 million investment plan in readiness for electric and hybrid vehicles. Some of the investment will be used to provide rapid charging hubs and plug in points at street lights. Time to make the move? If not we are certainly getting close. By Graham Hill

London Parking, EV Car Charging Breakthrough & BMW Engines In Toyotas

Thursday, 6. March 2014

Bits & Pieces: Britain’s most expensive parking space is up for sale in London’s Kensington Area. The underground bay is up for sale at £400,000, 15 times the average UK salary of £26,500. It is also double the average price of a house in the UK. But with property prices in the SW7 region of London averaging £2.3 million the parking space will soon be snapped up I’m sure.

Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back.

I reported a while ago that electric cars will soon be charged wirelessly (like your kettle) in the near future. I can now confirm that Toyota are carrying out field trials on a wireless charger embedded into the floor of a number of domestic garages. The car is parked over the bed and fully charged in 90 minutes.

Trials are being carried out on the new Prius Plug In Hybrid. Again talking about Toyota they have closed on a deal with BMW to supply them with a family of diesels. The 1.6 currently fitted on the Verso will be extended across other cars in the range whilst platforms developed for 2.0 litre units are already prepared for production. By Graham Hill

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