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Strong Residual Values and Lower Taxation

While the price of the car is certainly important, it shouldn't be your sole focus. An electric or hybrid car may have a more expensive list price than a fuel-powered model, but it will likely be significantly cheaper to run, and therefore, less expensive over the period of ownership. It’s also worth noting that a fully electric car pays no road tax.

Both electric and hybrid cars are good at holding their value, so you should be pleasantly surprised when you decide to sell the car. It also means monthly payments may be lower than you would think. Kia takes several steps to ensure residual values are high, so that it can offer favourable monthly rates and reduce whole-life costs

There are many parts to company car and fleet tax, and that can make it seem complicated. The Vehicle Excise Duty (otherwise known as road tax) is is judged on a vehicle's CO2 emissions, and also electric range for plug-in hybrids. Electric vehicles – such as the Soul EV and e-Niro – are completely exempt from VED, while all hybrids will see a significantly reduced charge as well.

Electric cars offer considerable savings in BIK tax – in fact, you pay nothing for the first year. For someone in the 40% tax bracket, this could mean you save as much as £10,000 over three years compared with a similar, less powerful diesel vehicle. All hybrid powertrains also benefit from lower BIK tax rates, whether a mild-hybrid, hybrid, or plug-in hybrid.

Capital allowances also need to be considered. You can deduct some of the cost of the vehicle for your business from the profits before tax. The amount you can deduct is based on CO2 emissions. A fully electric car – such as e-Niro or Soul EV – is entitled to be fully deducted. In fact, all hybrid models included in the Kia Eco range will enjoy favourable tax rates because of their low CO2 emissions.