Why the super efficient, ultra economical Volvo V60 Plug-in Hybrid R-Design is the savviest investment for business buyers with premium tastes.
2nd June 2014: With an On The Road price of £51,675, the new Volvo V60 Plug-in Hybrid R-Design might look expensive at first glance, but thanks to ultra low CO2 emissions, it’s actually more affordable to buy and run than any other premium executive hybrid in its class.
Emitting a class-beating 48g of CO2 per km, the Volvo V60 PHEV is not only eligible for the £5000 government Plug-in Car Grant, but attracts tax relief in the form of a 100% First Year Allowance. It’s also subject to just 5% BIK tax, meaning huge savings for businesses and company car drivers.
Sole traders on the higher income tax rate save the most – typically around £21,803, depending on their business-private mileage ratio.1
Businesses buying outright pay just £37,340 after the £5000 grant and writing off the full cost of the car against taxable profits in the year of purchase. 2
Company car drivers on the 40% income tax rate pay just £86 per month for the R-Design – allowing them to enjoy a top -of-the-range premium sportswagon for less than the price of a supermini. 3
‘Although R-Design sales have just started, orders are already strong as businesses and drivers crunch the numbers and realise they don’t have to bust their budget or compromise on style, performance, comfort or technology,’ said Selwyn Cooper, head of business sales at Volvo Car UK.
James and Holly Broadley, an accountant and self-employed barrister, are two happy customers. ‘We read a glowing review of the V60 Hybrid, which said the car was brilliant but expensive,’ said James. ‘Then I realised it was for private buyers and didn’t consider the car’s 48g/km CO2, meaning Holly, as a sole trader, could enjoy 100% First Year Allowance and 40% tax relief. About 90% of her mileage is for business, and with the £5000 grant4 we knocked around £20,000 off the price. Sold!’
Cost savings continue on the road
V60 Plug-in Hybrid drivers will realise even bigger returns on their investment thanks to exceptional fuel economy. In default Hybrid mode, the car delivers 155.2mpg combined, which over three years/ 40,000 miles equates to a monthly diesel bill of just £42. That represents a 58% saving compared with the V60 Hybrid’s closest performing rival with its equivalent pump spend of £100 per month.5
James Broadley added: ‘In addition to the car’s list price savings, a big part its appeal was its low fuel consumption, and two months after taking delivery, Holly’s fuel spend is around three times lower compared with her previous car. Even better, on local town business journeys she uses no fuel at all, just pure electricity. The V60 Plug-in Hybrid is proving to be a brilliant investment all round.’
R-Design: Built for business, designed around you
R-Design epitomises Volvo’s ‘Designed around you’ philosophy, with a short options list for the simple reason that everything a business driver could want is fitted as standard. Bluetooth, Volvo On Call, sat nav and even internet connection mean drivers are never out of touch, while business miles fly by thanks to superior comfort: leather and nubuck upholstery, lumber support and heated sports seats, electrically adjustable driver’s seat, DVD and DAB radio are just a few R-Design standards.
The Volvo V60 Plug-in Hybrid vs. rivals
|Volvo V60 D6 AWD R-Design Lux Nav||212+68||48||£51,520||Y||5%||£43.02||£86.03||155.2||£42.38||£356.18|
|Volvo V60 D6 AWD SE Lux Nav||212+68||48||£49,920||Y||5%||£41.60||£83.20||155.2||£42.38||£344.45|
|Peugeot 508 RXH 2.0 e-HDI Hybrid4 EGC||200||104||£34,090||N||14%||£73.86||£147.72||68.9||£100||£658.62|
|Lexus IS 300h Premier CVT Auto (saloon)||220||109||£38,440||N||14%||£89.69||£179.39||60.0||£109.43||£742.66|
|Mercedes-Benz E300 BlueTec Hybrid SE TipAuto||201||119||£41,670||N||16%||£110.97||£221.95||62.8||£109.71||£918.86|
|BMW 3 Series Touring 330d Luxury Step Auto||254||135||£37,720||N||23%||£144.59||£289.19||55.4||£124.37||£1197.23|
|Audi A4 Avant 2.0TDI 177 Quattro S Line S Tronic||175||144||£23,030||N||24%||£140.12||£280.24||51.4||£134.04||£1660.19|
Find out how much you could save at www.volvocars.com/uk/campaigns/hybrid
1. Based on 90% business use at the 40% tax rate.
2. Based on 20% small profit corporation tax rate applying to businesses with profits not exceeding £300,000.
3. Examples (prices correct at time of issue date): Audi A1 1.4 TFSI 122 S line 3dr P11D £17855 BIK 17% Monthly tax £101.17; Citroën DS3 1.6 THP 155 DSport 3dr P11D £17,295 BIK 20% Monthly tax £115.33; Mini Cooper 1.5D Chili/Media Pack 3dr P11D £19,820 BIK 14% Monthly tax £92.50.
4. Government Plug-in Car Grant provides 25% (up to £5000) of the list price of new cars meeting certain criteria [https://www.gov.uk/government/publications/plug-in-car-grant/plug-in-car-grant-vehicles].
5. See cost comparison table above; fuel costs based on national average diesel pump price at time of issue. 6. Based on national average diesel pump price at time of issue and 3 years/ 40,000 miles.