Trade price row for Renault EVs

5 April 2013  

TRADE price guide CAP has reaffirmed its decision not to forecast used values for Renault electric vehicles until the battery is included, rather than leased separately.

The issue has again surfaced after it was reported that Benefit In Kind tax rules for company car drivers will see the Renault Zoe’s battery replacement cost added to the car’s list price for P11D purposes. That situation was described by CAP as “another nail in the coffin” of Renault electric vehicle prospects in the company car market under the manufacturer’s current approach of treating the battery as a separate entity from the car itself.

Now tax rules revealed by Fleet News magazine have added to the challenges created by Renault’s approach by further weakening the commercial prospects for Renault EVs in the company car market.

CAP believes HMRC has made a fair decision by including the battery in the BIK equation and argues that Renault should reconsider its position as the chances of acceptance for Renault EVs in the crucial company car market recede further into the distance. Martin Ward, a manager from CAP said: “HMRC’s decision to base the BIK on the total is only fair, otherwise Ford, for example, could deflate the P11D value of a Mondeo by excluding the engine.