Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Leasing key for new BMW 320d
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Leasing key for new BMW 320d

Date: 08 September 2009   |   Author:

BMW 320d Efficient Dynamics

BMW has admitted that much of the success of its new 109g/km 320d Efficient Dynamics model will be in the hands of leasing companies, and whether they pass on the prospective capital allowance savings to customers.

Describing the car as the "pinnacle" of its Efficient Dynamics low-CO2 programme, BMW's 68.9mpg 3-series, which will be on sale in the UK next March, falls into the sub-111g/km capital allowance boundary where the car's entire value can be set against pre-tax profit in its first year.

"It depends on whether lease companies pass on the savings of 'cheaper leasing' to customers, or whether they pocket it," said 3-series product manager David Cantle. "They are writing it down quicker so if they pass on the savings we think it will be around 5% lower per month on the lease rate, though that also depends on them making a profit. "

"It's going to be different from lease company to lease company and their ability and willingness to reflect taxation in passing on the savings; some will and some won't," predicted David Rawlings of Business Car Finance. "So many factors go into vehicle pricing that it's almost impossible to say if one is low because of the tax effect. It could just be that they've taken a gamble with RVs." Rawlings said shopping around and benchmarking a lease supplier against the big names in the market will be vital with a car like this.

The 320d Efficient Dynamics will be priced at the same level, and come with the same equipment, as the current SE. The engine changes to hit 109g/km mean it's slightly less powerful than the standard SE, although with 163PS it's still 44% more powerful than Honda's Civic Hybrid, which at 113PS was previously the most powerful car available at below 111g/km. There isn't a sub-111g/km car that can get within two seconds of this BMW's 0-62mph acceleration time, either.

"For people with a job car, there's now an offering where there wasn't before," said Cantle. Rival brand Audi will launch a 120g/km A4 model by the end of this year, while other premium brands are still yet to announce plans to get upper medium cars below that figure, let alone 110g/km.

The car has come about at least in part due to lobbying from BMW GB. The UK will take around 60% of worldwide production of 320d Efficient Dynamics models.

BMW claims the new model will be the lowest-emitting BMW "for some time", with no plans to take the technology down to the lower medium sector 120d for the foreseeable future.