According to Cap HPI, drivers considering switching company car for tax reasons to lifestyle 4×4 vehicles can represent a tax efficient purchase.
Cap HPI data revealed that registrations of new 4×4 lifestyle vehicles in the LCV sector have increased every year for the past ten years, doubling from 7.24% in 2010 to 15.02% so far in 2019. Last year 13.67% of all LCVs sold were 4×4 lifestyle.
The volume increase now menas that 4×4 lifestyle vehicles are now the third largest sector across the whole LCV market for registrations in 2019 so far, after medium vans (40.5%) and large vans (20.2%).
Cap HPI points towards the tax benefits that can be gained over a conventional SUV compared to a lifestyle 4×4, which makes them “disproportionately cheap”.
Models from Ford, Mitsubishi and Nissan are the best sellers in the sector accounting for 33.11%, 24.24% and 17.78% respectively of total sector sales so far in 2019.
The top 3 lifestyle 4x4s registered in 2018 were the Ford Ranger Wildtrak 3.2 200 Auto; Nissan Tekna 2.3 190 4WD Auto/Nissan Tekna 2.3 190 4WD; and Mitsubishi L200 Barbarian 4WD Auto.
Cap HPI estimates this trend is due to the practical nature of the vehicles, as well as their family appeal. Towing capabilities and off-roading capability means they are popular with lovers of the great outdoors too.
Steve Botfield, senior editor, commercial vehicles & motor cycles at Cap HPI, said: “Drivers often choose lifestyle pick-up vehicles to reduce company car tax, because the HMRC classify any vehicle as a van if the payload is greater than 1,000kg. This has big tax benefits and can mean that motorists can drive a vehicle with a good spec and big on-road presence at a fraction of the cost of running a large luxury 4×4. The increasingly enhanced specifications and features such as a Truckman top and other secure load covers, which are not included with standard 4×4 lifestyles, means they also hold their values well in the used market, making them an even more solid purchase.
“It’s easy to see why registrations have doubled in this sector in the past nine years as drivers recognise 4×4 lifestyle vehicles’ flexible use as a multi-purpose vehicle with top class specifications and very appealing tax benefits.”