If you are looking for a cheap way into electric motoring, then move along, there’s nothing for you to see in a Honda showroom. The Honda e’s list price of £27,160 and upwards after the grant has been deducted is a chunk more than city cars like the VW e-UP and the bargain-priced MG ZS EV. It’s a couple of grand more than the Honda’s biggest rival, the MINI Electric too.
It looks a bit cheaper than bigger EVs like the Nissan Leaf and Kia Soul EV, but bear in mind that they have substantially bigger batteries – and that is the part which costs the cash on an electric car. Reckon on a monthly payment of around £300 to get a Honda e on a lease or PCP finance scheme.
While it doesn’t look great value on paper, the Honda e is obviously a quality car which is packed with interesting technology. That might be worth paying extra for if overall range and interior space aren’t crucial to you.
Compared to a petrol or diesel small car, the costs associated with running a Honda e will be tiny. It will cost less than a fiver to ‘fill it up’ from a home charger, and in theory it should take you at least 120 miles. The same cash would get you around 40 miles at best in a conventional car. Servicing should be cheaper too, and the e is exempt from congestion and emission zone charges.
The real saving will be from Benefit In Kind (BIK) taxation though. For the 2021-22 tax year the Honda (and all other electric cars) are rated at 1%, meaning there are possibly thousands of pounds to be saved in company car taxes. It also means you may be able to lease the Honda through a salary sacrifice scheme, reducing the monthly payments by the amount you are taxed on your income. If you’re a higher rate tax payer, that could make the cost less than a petrol car.