Honda Salary Sacrifice Car Lease
Soichiro Honda, born in 1906 near Mount Fuji, created the first ‘Honda’ in 1946 by attaching surplus generator motors to bicycles in post-war Japan. Honda gained fame in motorcycles, then cars, with the Civic becoming popular in the 1970s. Honda also invented the first map-based car navigation system, preceding GPS by over a decade. Today, Honda has two electric vehicles: the Honda e and the Honda e. They aim for net-zero CO2 emissions by 2050 and continue to reduce their environmental impact through various initiatives for a sustainable future.
One main barrier to switching to an electric vehicle is the upfront cost and lack of knowledge about charging. The unknown worries people. Many government grants and schemes are available, but often go unnoticed or unused. For example, a salary sacrifice electric car scheme allows employees to save 30-60% on an electric car by agreeing to have a portion of their pre-tax salary deducted each month. This saves thousands of pounds on the car lease at no cost to the employer.
This blog examines the performance, space, and infotainment systems in the Honda e, e:Ny1 and the new Prologue to help you decide if an electric Honda is the best car for you to salary sacrifice.
Salary sacrifice the Honda e
The Honda e, first released in 2020, competes with models such as the MINI, Fiat 500, and the ORA Funky Cat. Its current RRP ranges from £37,395 to £38,120. The Honda e is equipped with a 35.5kWh lithium-ion battery that powers a single motor driving the rear wheels. Although only one version is now available, the discontinued base model could achieve 137 miles and 134 bhp. The current models cover 131 miles and deliver 152bhp.
The Honda e comes well-equipped as standard, particularly in terms of technology. Designed with minimalism in mind, it blends retro and futuristic aesthetics. Honda describes the cabin as “functional,” noting its “modern and lounge-like, with an open-plan feel.”
One notable feature of the Honda e is the absence of traditional door mirrors. Instead, it uses cameras that display high-resolution video feeds on 6.0-inch screens positioned on either side of the dashboard. According to Honda, this innovation improves safety, and aerodynamics, and reduces wind noise.
Specifications and performance stats
As mentioned, the Honda e is only available with a 36kWh battery. This allows it to achieve 0-62mph in 8.3 seconds and 131 miles on a full charge. Standard features include sat-nav, Apple CarPlay, Android Auto, and an eight-speaker sound system. Additionally, the Honda e offers lane departure and blind spot warnings, adaptive cruise control, Honda’s Parking Pilot system (which includes a multi-view camera system), parking sensors for both front and rear and keyless entry.
What’s the Honda e like to drive?
The Honda e is well-suited for short trips around town, featuring a responsive engine and compact dimensions. The multiple screens on the dashboard function effectively after some acclimation, though the smaller screens replacing conventional side mirrors may require some adjustment. The vehicle offers good visibility, and both the steering wheel and driver’s seat provide ample adjustment options. Its rear-wheel-drive setup contributes to an excellent turning circle, and the regenerative braking strength can be adjusted, with an option for one-pedal driving.
These features contribute to a relaxed and straightforward driving experience. Engaging Sport mode enhances performance, but the standard setting also ensures smooth and quick acceleration. The car handles most rough road surfaces with ease, making it an ideal choice for city driving. At higher speeds, the Honda e maintains comfort and is quiet, with minimal wind or road noise inside the cabin. However, acceleration diminishes above 50 mph, and its limited range makes it less suitable for long journeys.
On country lanes, the Honda e offers a satisfying driving experience with sharp handling, minimal body lean, and stability on uneven surfaces. While it may not be very fast, the immediate power delivery at low speeds when exiting slow corners is particularly enjoyable.
Inside the Honda e
The front seats offer ample space and comfort, with adjustable features to accommodate most people. However, storage space is limited, with small door bins and a modest glovebox. The centre console provides space for larger cups, and there is a small pouch below the heating controls for a mobile phone. Additionally, there are two USB ports for charging.
Despite having four doors, the back seats are not ideal for adult passengers on long trips, making them more suitable for children. There is no central seat or third seatbelt, and although there are ISOFIX mounting points, fitting larger baby seats may be challenging. The rear doors have space for a small cup, and the front seatbacks have fabric sleeves for small items. Two USB ports are also available to keep electronic devices charged.
The boot offers 171 litres of space with the rear seats up, which is less than some competitors like the Mini Electric (211 litres) and the Peugeot e-208 (311 litres). However, it can accommodate a few shopping bags or small luggage for a weekend trip. With the rear seats folded down, the total luggage space increases to 861 litres. The load area is flat, with only two suspension mounts intruding into the floor.
Infotainment and accessories in the cabin
The cabin stands out from other small cars because of its dominating screens, though the cameras replacing door mirrors may not appeal to everyone. The stylish twin-spoke steering wheel would usually be a focal point, but it is overshadowed by a series of screens extending across the wood-grain dashboard. The design feels like it’s from the '90s, which is a refreshing change from the typical interiors of small city cars. The infotainment system is handled by two 12.3-inch touchscreens, with standard features including sat-nav, Apple CarPlay, Android Auto, and an eight-speaker audio system.
The screens offer additional functionalities, such as internet browsing and connecting a gaming console when the car is stationary. While not essential for commuting, it’s a fun feature to mention. The screens are customizable, even offering a virtual fish tank that lets you feed digital fish. On a practical note, there are four USB charging points—two in the front and two in the rear.
As aforementioned, at either end of the dashboard, two smaller 6.0-inch screens replace conventional door mirrors, displaying live feeds from cameras mounted on the front doors.
Lease the Honda e from The Electric Car Scheme and save hundreds through salary sacrifice
If you choose The Electric Car Scheme as your salary sacrifice provider, here’s an example of what the monthly cost breakdown will look like if you lease a Honda e Advance. The following is based on a 40% tax payer, who wants to lease the car for three years and intends to travel 10,000 per annum on a flat payment profile.
The monthly gross cost will be £891, but you will save £356 in income tax savings, and £18 in national insurance savings. You will have to pay a small amount of benefit-in-kind tax (otherwise known as the company car tax) which will be £41 per month. Overall, the net cost you will need to pay is £558 per month for a Honda e. You can calculate your savings using our quote tool, where you can input your salary, and desired lease terms and find the EV of your dreams.
At The Electric Car Scheme, we try to simplify the electric car experience, so we make it easy to add everything you need into one bundle. You can get the full tax savings on maintenance, breakdown cover, comprehensive car insurance, and a home charge point - keeping your net zero journey hassle-free.
Lease the Honda e:Ny1
The Honda e:Ny1 is the second fully-electric model launched by Honda and is now available to lease from The Electric Car Scheme as well as other lease providers. It has a RRP range of £39,995 to £42,195. The Honda e:Ny1 competes with cars like the Hyundai Kona Electric, Peugeot e-2008 and the Renault Megane E-Tech, which all cost less than the e:Ny1.
Specifications and performance stats
The Honda e:Ny1 is offered in two trim levels, the Elegance and Advance, with both offering high levels of equipment. Both trims have the same powertrain and battery size, meaning the range and 0-62mph speed are the same, as you can see in the table below.
| Trim level | Powertrain | Battery size | Range | 0-62mph | Salary sacrifice cost per month |
|---|---|---|---|---|---|
| Elegance | 150kW | 69kWh | 256 miles | 7.6 seconds | £320 per month |
| Advance | 150kW | 69kWh | 256 miles | 7.6 seconds | £335 per month |
What is the difference between the Elegance and the Advance trim?
The Elegance is the less expensive of the two and includes several features as standard, such as keyless entry and start, wireless phone charging, heated front seats, a rear-view camera, front and rear parking sensors, and a 15.1” display that utilizes the Honda Connect Infotainment System.
The Advance trim builds upon the standard equipment and includes additional features like a heated steering wheel, power tailgate, full-length sunroof, multi-view camera, and Honda’s Parking Pilot System.
What’s the Honda e: Ny1 like to drive?
The Honda e offers a comfortable driving experience both in town and on the motorway. Around town, the Honda e: Ny1 excels with its quiet and comfortable ride, even on bumpy roads. While there's some jostling over rough patches, potholes don't cause a jarring impact, unlike the sportier Tesla Model Y. The car has three driving modes—Eco, Normal, and Sport—with Eco providing the smoothest ride and helping to maximize range. However, the regenerative braking isn't very strong, so you'll need to use the brakes more frequently than in other EVs. Forward visibility is excellent due to the upright body shape, though the small rear window creates a significant blind spot. To compensate, parking sensors and a rear-view camera come standard, aiding in manoeuvring.
On the motorway, it maintains comfort, effectively absorbing road bumps. Unfortunately, there is considerable road noise, which detracts from the otherwise quiet and refined driving experience. The electric motor is responsive, allowing quick acceleration to 70 mph, though it loses some power above 60 mph, requiring more time for overtaking. The vehicle is equipped with numerous driver assistance features, including adaptive cruise control, lane departure warnings, and Traffic Jam Assist, which handles the pedals in heavy traffic.
On country lanes, the emphasis on comfort affects the car's handling in corners. There's noticeable body lean, which can reduce driver confidence and cause some movement in the seat. The light and vague steering makes precise handling difficult, especially when trying to drive more dynamically. In Sport mode, the car can easily spin its tyres when accelerating, which some might find unsettling.
What’s the e: Ny1 like inside?
The front seats provide ample space, with the driver’s seat offering a high position for a good view of the road. However, there's limited space for the left leg and minimal reach adjustment for the steering wheel, which might make it difficult for taller drivers to find a comfortable position. Most people will find the space adequate, and the passenger seat doesn't face these issues. Storage options are average. The door bins are modest, and while the space beneath the armrest is slightly better, it’s still not extensive. There are two deep cupholders and a wireless phone charging area beneath the touchscreen, along with USB-A, USB-C, and 12V sockets.
Back-seat passengers enjoy plenty of knee room, headroom, and space to stretch their feet under the front seats, making it comfortable even for taller individuals. The shoulder space allows a third person to sit in the middle seat without much trouble, though the raised cushion and seatbelt from the roof can be less comfortable.
Storage in the back is limited, with no proper door bins, just a bottle-shaped cubby hole and a small space between the front seats. The fold-down centre armrest reveals two cupholders, but they are uncovered, making it uncomfortable to rest an arm on when empty. There are two USB-C slots for rear passengers to charge their devices. The ample space in the back makes it easy to fit a child's seat. The doors open wide for easy access, though the ISOFIX mounting points are set deep within the seat, making them a bit tricky to attach.
The boot space is limited to 361 litres, which is less than many competitors. For comparison, the Volkswagen ID3 has a 385-litre capacity, while the Hyundai Kona Electric offers 466 litres and the Toyota bZ4X has 452 litres. More spacious options include the Skoda Enyaq with 585 litres, and larger models like the Nissan Ariya and Tesla Model Y, the latter also featuring a front boot, providing 466 litres and 854 litres, respectively.
Despite its smaller capacity, the Honda's boot is a practical square shape, making it easy to utilise the space, and it has a minimal lip for loading heavy items. There’s also additional space under the floor for storing items like charging cables. Folding the rear seats increases the space to 1,176 litres, though this is still about 300 litres less than the Peugeot e-2008. A flap covers the gap between the seatbacks and the boot floor when the seats are folded, preventing longer items from getting caught.
Infotainment and accessories in the cabin
The interior of the Honda e: Ny1 makes a positive first impression with comfortable seats and a clean, modern design. The large 15.1-inch touchscreen infotainment display is prominent, almost to the point of being oversized. Fortunately, its logical layout makes it user-friendly compared to similar systems like Tesla's. The screen is divided into three sections: navigation or Apple CarPlay/Android Auto at the top, phone controls and EV settings in the middle, and climate controls at the bottom. This segmentation reduces the need to navigate through menus frequently, and the graphics are clear and sharp. However, the fonts seem a bit outdated, and the system can be slow to respond to inputs, although it's a significant improvement over previous Honda infotainment systems.
The digital instrument display continues the theme of large screens, providing a wealth of information, including speed, state of charge, driver assistance systems, and sat nav instructions. The interior trim is consistent across versions, featuring synthetic leather upholstery, piano black trim pieces, and genuine leather on the steering wheel. The steering wheel is heated only on the higher-spec Advance models, but all versions come with heated seats.
Salary sacrifice the Honda e:Ny1
Through a government car scheme, you can lease the Honda e:Ny1 and save thousands by paying from your pre-tax salary. At The Electric Car Scheme, we have access to the top leasing companies means you can access the best prices available. You can be confident you achieve the best price available in addition to the full 30-60% tax savings on the cost of the car through salary sacrifice.
Without an EV salary sacrifice scheme, you could be paying £475 per month but with a scheme, you could be paying £320 for the Elegance trim. At The Electric Car Scheme, you could save £190 in income tax savings and £9 in national insurance savings.
Coming soon: The Honda Prologue
The Honda Prologue was unveiled in 2022 and is set to hit roads in the UK in 2024. It is said to embody the ‘best that Honda has to offer in terms of technology and versatility, coupled with an advanced electric powertrain.’ It is designed to be an ‘exceptional vehicle that happens to be electric, it offers buyers the opportunity to switch to an electric car without compromising.’
It will be an all-electric SUV,
Specifications and performance stats
There are five trim levels, all of which vary in price and performance. You can choose from the EX FWD, EX AWD, Touring FWD, Touring AWD and the Elite AWD. The Honda Prologue has an RRP range of $48,795 (£37,452) to $59,295 (£45,511).
The base level trim comes well-equipped with heated front seats, dual-zone automatic climate control and wireless smartphone charging. The Touring model adds leather upholstery, a 12-speaker Bose stereo and memory seat settings.
Range and EV charging
All Prologue models feature an 85.0-kWh battery pack. The single-motor front-wheel drive model has an EPA-estimated range of 296 miles. The dual-motor all-wheel drive version sacrifices some range for better acceleration, with the EX and Touring trims rated at 281 miles per charge, and the top-tier Elite at 273 miles. In real-world testing, the Elite AWD achieved a range of 240 miles.
The Prologue can charge its battery on a DC fast charger at a maximum rate of 155 kW. Honda also offers a home charging kit for convenient battery refills in your garage.
Inside and Infotainment in the Prologue
The Prologue's dashboard has a simple, clutter-free design in muted tones similar to other Hondas. However, it still uses some of Chevy's buttons, switches, and knobs, which feel out of place and awkward to use. The Prologue's wheelbase is 8 inches longer and 5 inches wider than the CR-V, resulting in a roomier cabin and extra cargo space.
An 11.3-inch infotainment touchscreen stands tall in the middle of the Prologue’s dashboard. It includes wireless Apple CarPlay and Android Auto for connecting your smartphone, as well as an in-dash navigation system that uses Google Maps. Standard features include an 11-inch digital gauge display and a wireless smartphone charging pad. The top-spec Elite trim offers a head-up display. A 12-speaker Bose stereo system with additional tweeter speakers in the front pillars is standard on Touring and Elite models.
Will the Honda Prologue be available to salary sacrifice?
At The Electric Car Scheme, we believe the Prologue will be available to salary sacrifice in due time. Offering a salary sacrifice scheme as an employee benefit will mean you can support your employees on their journey to Net Zero whilst directly reducing your company’s carbon emissions. Stay tuned for the Honda Prologue to appear on our quote tool!
Companies choose The Electric Car Scheme for several reasons, here are a couple of them:
Complete Risk Protection offering: protects the employer from day one to safeguard them from any unexpected costs if your electric car needs to be returned early.
Best prices available: you will have access to the top leasing companies to ensure your employees get the best prices available. The best prices are essential to get good employee take-up.
Trusted 5* service: serving thousands of customers and rated on Trustpilot - you can rest assured that you’re in good hands.
No cost: there are no set-up or running costs because our fee is equivalent to your employer’s tax savings, so you can roll out the scheme at no cost to your business.
If you’re considering signing up to an electric car scheme, but want more information on the process, you can visit our website.
Last updated: 22/07/24
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
