News story on BBC

[Philip Fisher]

Apparently lots of PHEV vehicles are bought for the tax breaks and never plugged in......

https://www.bbc.co.uk/news/business-46152853

I am currently looking for the story explaining about the toilet habits of bears when surrounded by trees.....

[MaDProFF]

I do not think you have to be a rocket scientist to work that one out.

Quite sad really, but then only the Employers are to blame.

The main reason why BMW sent letters to all their Hybrid car owners warning them that the batteries would not covered under warranty if they had not been regularly charged and discharged.

[Haldex]

The car keeps a log of charge/discharge cycles?.. Talk about infringement of privacy.. And forcing owners to charge in order to keep the warranty?.. As if Volvo forced me to buy x amount of fuel every month- in order to honor the warranty..

[NewV90Owner]

Obvious that this was going to happen.

13% BIK versus 37% BIK.

The sales figures for hybrids are all exciting and all that but it is clear they are being bought for tax reasons.

The CO2 rates for car sales overall assume that all PHEV are plugged in all the time and getting 150mpg. Clearly they are not.

So the flight from diesel added to this tax induced mess has led to the highest CO2 figures for years and they will continue to rise.

(Please don't think I am a diesel defender).

[Haldex]

Originally Posted by NewV90Owner

So the flight from diesel added to this tax induced mess has led to the highest CO2 figures for years and they will continue to rise..

Exactly!

[Crockers]

I think the BIK of 13% should go once the value of the car is over a certain threshold. Say £30,000.

[Quonker]

Originally Posted by Philip Fisher

Apparently lots of PHEV vehicles are bought for the tax breaks and never plugged in......

I've got a T8 arriving very soon and am currently driving a Merc hybrid which I've had for 3 years during which time I've driven over 70K miles.

During the 70K miles I have averaged a poor 38 MPG which is far worse than my previous diesel A4 which averaged around 55.

I do plug it in when I can, mostly when I am in the office but of course this isn't going to make much of an impact with long motorway journeys.

Not only is the BiK reduction a big benefit, but the hybrid driving experience is so much better. I never get tired of pulling away from a standstill in complete silence and of course the performance is so much better.


I did look at other vehicles instead of the S90 but for a similar non hybrid vehicle it would have cost me around £500 a month extra in tax.

[Philip Fisher]

Originally Posted by Crockers

I think the BIK of 13% should go once the value of the car is over a certain threshold. Say £30,000.

Yeah. Right. Like we aren't nailed for enough BIK tax as it is.....

The 13 percent is multiplied by the list price so a pricier PHEV is already paying more than the percentage would suggest as the list is higher.

Anyhooo I did some calcs for the next 3 tax years and for a T8 there is no chance of 13 percent. Off the top of my head I think it was around 18 percent. T8s are no longer below the magic 50gco2 so go up a group or 2.

[Crockers]

God my heart bleeds for you. Say the car is £70k. That is £400 extra tax a month. You try leasing / buying the car with insurance and tax and maintenance for that.

Before you attack me I spent most of my working life with a company car, and always thought it was a bargain compared to buying my own.

[Philip Fisher]

Originally Posted by Crockers

God my heart bleeds for you. Say the car is £70k. That is £400 extra tax a month. You try leasing / buying the car with insurance and tax and maintenance for that.

Before you attack me I spent most of my working life with a company car, and always thought it was a bargain compared to buying my own.

But dont forget that the employee is not just paying the tax. They have the opportunity cost of a cash settlement from their employer.

I have just done all the maths and the total cost to me and my employer for a new T8 for the next 3 years gives me a monthly figure of x. If x were then a cash sum paid to me which I paid income tax on it would give me just about enough - after income tax - to run a new XC90 for the next 3 years......

So at circa 18 percent the cash and car equation is in balance. Any more and everyone will just take the cash. Colleague has just had a quote on a new FPace. BIK is 36 percent average over next 3 years. Guess what - he will take the cash instead......