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EV and hybrid finance offers reach parity with ICEs

'Fiat’s model range is built around the 500 city-car and dealers will be hungry for a next-generation model'While May was a strong month for private registrations (up 10% year-on-year), retail demand is still down 5.7% for the first five months of 2018 compared with the same period a year earlier.

Warmer weather in May helped to boost footfall at dealerships and manufacturer offers continued to entice, but among the things on consumers’ minds may have been Brexit and the Government’s forthcoming Road to Zero strategy.

This is likely due in the next few weeks, but it could have a big influence on how the market plays out during the next plate change in September. The strategy should bring more clarity on how internal combustion engines will be phased out and how hybrids will be treated from a tax and incentive perspective.

AM’s retail offer data shows there are options at the more affordable end of the spectrum for alternative powertrain technology, with Hyundai’s Ioniq hybrid priced from £215.85 a month after a £4,248 deposit and Renault’s pure EV Zoe at £219 with a slightly lower deposit at £3,579.

The PCP pricing puts alternative technology on price parity with traditionally engined cars.

BMW’s i3 comes with the lowest APR rate, at 2.9%, and a monthly price below £330, although the deposit level is quite a lot higher at £6,474.59.

The Mitsubishi Outlander PHEV also has a higher deposit point to get the monthly payments down to a more affordable £315.32 a month, but should be achievable for customers trading in a car with strong residual values.

Mitsubishi is having a good 2018 so far with registrations up 14% to 8,586 units year-to-date. It has been given a boost by the arrival of the Eclipse Cross crossover at the start of the year and its smaller entry-level models, the Mirage, ASX and the Eclipse Cross are all within the £300-a-month range with accessible deposit levels.

At the other end of the spectrum, Fiat is having a tough time so far this year, with registrations down 31% as of the end of May to 16,333 units. That leaves the dealer network with a 7,300-unit deficit over this time last year.

Some manufacturers are having conversations with dealers to help adjust quarterly targets to realign expectations with demand at the half-year point, but if those discussions are not happening across the Fiat network, dealers’ Q1 and potentially Q2 bonus payment levels could pile on more pressure for the second half of the year.

Fiat’s model range is built around the 500 city-car and dealers will be hungry for a next-generation model – it last received a facelift in September 2016. A new 500, along with an estate version may reinvigorate interest for the dealer network. Fiat is also launching an electric version within the next couple of years that it hopes will help to bring the brand up-to-date with rivals.

While the network waits for Fiat’s product cycle to kick into gear, it cannot point the finger at the manufacturer’s finance offers for failing to help retail demand. There are low-deposit levels across the board and every model in the range is priced at below £300 a month with a mixture of PCP and PCH examples.

 

Model Finance type Deposit Term Monthly payment Final payment APR Offer ends
Plug-in vehicle offers
Hyundai Ioniq Hybrids SE 1.6 GDi DCT PCP £4,248.00 36 £215.85 £10,161.00 4.90% 30/06/2018
Renault Zoe Dynamique Nav Q90 Quick Charge PCP £3,579.00 36 £219.00 £4,344.00 4.90% 09/07/2018
Mitsubishi Outlander PHEV 3h petrol hybrid auto 4WD PCP £8,000.00 36 £315.32 £13,605.00 5.90% 26/09/2018
BMW i3 PCP £6,474.59 48 £323.26 £9,818.88 2.90% 29/06/2018
Toyota Prius Plug-In Business Edition Plus 5dr 1.8 VVT-i Auto PCP £4,808.00 36 £369.00 £13,950.00 4.90% 01/07/2018
Nissan Leaf Tekna PCP £5,098.97 36 £375.00 £11,067.50 4.49% 01/07/2018
Tesla Model S 75D PCP £11,000.00 48 £645.00 £32,120.00 4.90% 30/06/2018
Jaguar i-Pace EV400 S PCP £13,887.00 36 £699.00 £33,003.00 6.90% 30/06/2018
Tesla Model X 75D PCP £11,000.00 48 £725.00 £34,962.00 4.90% 30/06/2018
Porsche Panamera E-Hybrid PCP £17,800.00 36 £794.59 £49,099.80 6.30% 01/07/2018
Mitsubishi
Mirage Juro Petrol Manual PCP £2,000.00 36 £185.06 £4,026 5.90% 26/09/2018
ASX 3 Petrol Manual PCP £2,500.00 36 £274.87 £7,447 5.90% 26/09/2018
Eclipse Cross 3 Petrol Auto PCP £3,000.00 36 £288.97 £12,626 5.90% 26/09/2018
Outlander 3 Diesel Auto 4WD PCP £5,000 36 £340.33 £10,624 5.90% 26/09/2018
Outlander PHEV 3h petrol hybrid auto 4WD PCP £8,000.00 36 £315.32 £13,605 5.90% 26/09/2018
Shogun SWB SG2 diesel auto 4WD HP £9,900 36 £419.86 £419.86 0.00% 26/09/2018
Fiat
500 Pop 1.2 70PS PCP £1,310 48 £139 £3,788 3.90% 30/06/2018
500C Pop 1.2 70PS PCP £1,110 48 £195 £4,460 3.90% 30/06/2018
500X 1.6 E-torQ Mirror 5dr 2018 PCH £5,370 48 £179 N/A N/A 30/06/2018
500L 1.4 Mirror 5dr 2018 with Bi-colour paint 17-inch alloys PCH £4,901 48 £169 N/A N/A 30/06/2018
Tipo EASY 1.4 95PS Hatchback PCP £780 48 £199 £4,503 4.90% 30/06/2018
Tipo S-Design 1.4 T-Jet 120PS PCH £3,975 35 £159 N/A N/A 30/06/2018
124 Classica 1.4 MultiAir Turbo 140PS PCH £796 23 £199 N/A N/A 30/06/2018
Panda City Cross 1.2 69PS PCP £1,160 48 £179 £3,264 5.90% 30/06/2018
Fullback Double Cab 2.4 150PS SX PCH £2,868 24 £239 N/A N/A 30/06/2018


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