Lexus makes its tax-friendly case in the business car stakes

09-Apr-2019


Lexus’s all-new UX model is making an immediate impact in the growing market for luxury SUVs, states Iain Robertson, by delivering savings for company car drivers and business fleet operators that its competitors simply cannot match.

Reaping the benefits of the latest generation of Lexus’s self-charging hybrid technology, the UX model has fundamentally lower CO2 emissions and significantly better fuel economy potential, both of which aspects help to secure best-in-class company car tax rates and competitive daily running costs. Naturally, the Lexus hybrid system has an impressive track record for durable performance and outstanding reliability. It is a reputation aided by simpler maintenance requirements than conventional engines, which contributes to lower bills for routine servicing and repairs.

For company car drivers, the situation is compelling, as the new Lexus UX attracts the lowest benefit-in-kind tax rates of any model in its class, by as much as 15% lower than several of its key rivals (2019/2020 tax year). This delivers an average saving of more than £5,000, based on 36 months’ ownership/30,000 miles driven. Examples are provided in the table below:

 

MODEL

LEXUS UX 250h

Audi Q3 3.5 TDI Sport
S Tronic

BMW X1 sDrive 1.8d SE Step Auto

MERCEDES-BENZ GLA 200d SE auto

JAGUAR E-Pace 2.0d auto

VOLVO XC40 D3 Momentum Geartronic

P11D value

£29,730

£33,690

£31,260

£29,820

£31,620

£31,200

BiK rate (2019/20)

22%

32%

32%

37%

37%

34%

BiK rate (2020/21)

23%

33%

33%

37%

37%

35%

BiK rate (2021/22)

23%

33%

33%

37%

37%

35%

Total BiK cost @ 40% tax rate

£8,087

£13,206

£12,254

£13,240

£14,039

£12,979

Difference +/- vs UX

+£5,120

+£4,167

+£5,154

+£5,953

+£4,893

 

The UX is just as compelling a proposition for business fleet managers when it comes to its total cost of ownership profile. Low depreciation allied to fuel costs, competitive service, maintenance and repair costs and best-in-class employers’ National Insurance and road tax (VED) figures combine to save up to more than £8,800 compared to the UX’s top-performing competitors (again 36 months/30,000 miles; data source: CAP), as detailed below:

 

MODEL

LEXUS UX 250h

Audi Q3 3.5 TDI Sport
S Tronic

BMW X1 sDrive 1.8d SE Step Auto

MERCEDES-BENZ GLA 200d SE auto

JAGUAR E-Pace 2.0d auto

VOLVO XC40 D3 Momentum Geartronic

Depreciation

£11,410

£17,470

£18,490

£15,625

£12,575

£13,855

Fuel

£3,121

£3,500

£3,437

£3,738

£4,326

£3,382

Service, maintenance, repair

£1,110

£1,049

£1,010

£1,518

£914

£1,719

Employers’ NI

£2,790

£4,556

£4,228

£4,568

£4,844

£4,478

VED

£375

£485

£485

£795

£1,110

£795

Total Cost of Ownership

£18,806

£27,061

£27,650

£26,243

£23,769

£24,229

Variation to Lexus UX +/-

 

+£8,255

 

+£8,844

+£7,438

+£4,963

+£5,423

 

The efficiency of Lexus’s self-charging hybrid technology proves its worth in real-world conditions. Data drawn from the company’s pre-launch programme of UK customer test drives for the new UX revealed that, on average, 52% of the driving time and 36% of the route distance were spent in all-electric EV mode, with zero emissions and no fuel consumption. This demonstrates the genuine benefits to be gained from the vehicle as it switches automatically to power from the hybrid battery, when driving conditions permit.

Official combined cycle figures are from 49.6 to 53.3mpg fuel economy and 94g/km CO2 emissions, for versions with front-wheel drive and 17-inch wheels. Where Lexus E-Four all-wheel drive is specified, the benchmarks are 46.3 to 48.7mpg and 103g/km (fuel figures WLTP data, emissions NEDC correlated data). Further benefits are achieved thanks to a 61.7% posted residual value, which is the best among the rivals listed above.