smart Leasing

smart leasing: a different choice from the old city-car image

The #1, #3 and #5 need to be judged as their own electric cars. A familiar smart badge does not establish a tiny footprint, two seats or identical charging equipment. The current range gives you distinct SUV bodies, and the most useful comparison begins with where the car will park, who will travel and how it will recharge during an ordinary week.

For a business driver, a compact #1 may answer an access and parking brief that a larger #5 does not. For a private household, the #3’s coupe-style shape needs a rear-cabin trial before appearance settles the decision. IVF arranges both agreement routes for smart. Once the practical requirements are fixed, the team can compare specific vehicles and funding, with battery, drivetrain and equipment written into the proposal rather than left to inference from the grade name.

IVF provides a named specialist and free UK delivery, with the date confirmed for the chosen vehicle. Enquiries and quotations carry no charge or obligation. Ask about suitable two-, three- or four-year terms; the available agreement depends on the car and funder.

smart leasing: key facts

1. smart #1, #3 and #5 are battery-electric model lines; smart is a stocked IVF brand.
2. Current non-BRABUS #1 is 4,270 mm long; #1 BRABUS is 4,300 mm, so one length does not cover every grade.
3. Current #5 is 4,695 mm long, 425 mm longer than non-BRABUS #1, and has five seats.
4. #5 Pro’s 76 kWh specification and the 100 kWh versions have different charging hardware and manufacturer benchmarks.
5. smart UK base vehicle-warranty terms specify three years with unlimited mileage; package eligibility and component coverage require their own checks.
6. GOV.UK: zero-emission company-car BiK is 4% in 2026/27, rising to 9% in 2029/30.

Compare the smart options

Model pages are catalogue routes, not confirmation of stock or a delivery date. Where a line has left the current UK range, the status is stated in its row. Confirm the exact UK generation, equipment and supply in your quotation.

Measure #1 and #5 before moving up the smart range

Current UK length for the ordinary #1 grades is 4,270 mm; BRABUS measures 4,300 mm. Current #5 is 4,695 mm. It is therefore 425 mm longer than non-BRABUS #1, a useful difference to mark out in a garage or short driveway. The BRABUS body is excluded from that arithmetic. Allow additional room for doors, mirrors and loading rather than comparing length alone.

The size increase does not create a third row. #5 is a five-seat SUV, while #3 needs a separate assessment of its lower roof and rear opening. Before specifying a performance version, settle those physical constraints and list the equipment you genuinely need. If another vehicle is proposed during the quotation process, compare the full battery and body description again. A substitute that keeps the same brand but changes the charging hardware or passenger fit should trigger a new decision, not a routine administrative acceptance.

Choose the smart battery and drivetrain as separate decisions

All three model lines are battery-electric, but they are not one specification in different-sized bodies. The #1 and #3 listings include 49 and 66 kWh labels; #5 includes 76 and 100 kWh labels. Treat those as identifiers that need matching to the manufacturer’s exact UK generation, not interchangeable usable-capacity measurements. A larger number on a catalogue description does not settle efficiency or charging speed.

BRABUS should be chosen for its actual performance and drivetrain specification. Confirm the driven wheels, tyres and insurance implications, then assess whether those attributes meet your use. A driver who values a particular seat or assistance function should specify it independently of performance. Compare normal comfort and everyday manoeuvring as well as acceleration. The shared electric BiK percentage does not produce an identical benefit amount across differently priced versions, and it does not measure the household’s energy bill.

smart business leasing

For an SME, smart’s electric range allows a clear discussion about charging and the driver’s private-use benefit, but it does not remove differences between drivers. Establish where each car will charge, who will pay and whether a larger #5 brings a useful operational benefit over #1 or #3.

Directors should compare the supplied P11D and all tax years crossed by the agreement. A BRABUS derivative can have a different benefit amount even though its electric percentage follows the same path. Keep company expenditure, personal tax, insurance and charging costs separate so a decision about equipment is not mistaken for an overall saving.

VAT and the business accounts

VAT-registered businesses can normally reclaim 50% of the VAT on qualifying car rentals where private use is available, depending on circumstances and the normal VAT rules. Full rental-VAT recovery requires exclusive business use with no private availability. Maintenance can fall outside the rental block when it is genuinely optional, separately described in the contract and separately quantified on the invoice; recovery remains subject to normal VAT rules. Read HMRC’s motoring VAT guidance.

Businesses using the VAT Flat Rate Scheme do not normally recover input VAT on recurring car hire. The separate capital-goods exception does not turn hire invoices into a vehicle purchase. Check HMRC’s Flat Rate Scheme guidance.

A zero-emission car is not subject to the CO2-based lease-rental restriction. Check HMRC’s car-hire deduction rules.

For accounting periods beginning on or after 1 January 2026, revised FRS 102 generally requires a right-of-use asset and lease liability for lessees, including small companies using Section 1A. FRS 105 lease accounting for eligible micro-entities was not changed in the same way. Contract hire therefore does not universally keep a car off the balance sheet. Ask your accountant to apply the right framework; HMRC summarises the accounting standards.

Personal smart leasing: check the shape with your passengers

The #1 and #3 offer different rooflines and access, so sit in both with the people who normally travel. Try the rear headroom, child-seat access where needed and the luggage opening with the actual load. A coupe-style SUV can suit a household very well, but photographs and model numbers cannot prove that fit. The private agreement should follow the body decision rather than deciding it accidentally.

For #5, the larger cabin proposition comes with a larger footprint and still only five seats. If six or seven places are essential, move to an appropriately configured alternative before spending time comparing #5 grades. Include home parking, door opening and the route from the charging socket in the practical check. PCH should reflect total private mileage, insurance and energy, plus any maintenance you want managed through the contract. There is no company-car tax benefit to apply to a personal agreement.

smart company-car tax across the lease

The #1, #3 and #5 share the electric category, but different P11D values change the taxable benefit. Apply your own income-tax position to the resulting amount.

For an employee or director with private use, the taxable benefit normally starts with the car’s P11D value multiplied by the applicable BiK percentage. Personal tax then depends on the individual’s income tax rate and any relevant adjustments. The percentage is not the tax rate applied to the lease rental. A sole trader’s own business car use follows different rules.

The agreement can cross several tax years. Compare the whole path, not just the percentage in the year the car arrives.

Retained catalogue tax illustrations, rechecked 24 September 2026: a full tax year at 40% income tax, with no employee contributions or other adjustments. These are personal-tax calculations, not lease payments or equivalent-car savings. Scottish rates, tax-band crossings and Personal Allowance withdrawal can change the result.

Use our company-car BiK guide alongside HMRC’s 2026/27 and 2027/28 tables and the published 2028/29 and 2029/30 changes. Tax information checked 24 September 2026 against the C1 ledger and its primary sources. Tax treatment depends on individual circumstances and may change; consult your accountant.

Road tax and costs across the term

Vehicle Excise Duty (VED). For 2026/27, the standard annual VED payment after the first year is £200 before any supplement. First-year VED depends on CO2 and registration rules; zero-emission cars currently have a £10 first-year rate. These cash rates apply to 2026/27 only; later annual VED rates are not confirmed here. Ask how the funder treats tax increases during your agreement.

Expensive Car Supplement. The Expensive Car Supplement is currently £440 a year for five years from the second licence. The list-price threshold is more than £40,000 for petrol, diesel and hybrid cars, or more than £50,000 for qualifying zero-emission cars registered from 1 April 2025. Use the published list price before discounts, including relevant options, and check the registration date. Plug-in hybrids do not receive the electric-car threshold. GOV.UK explains VED and the supplement.

Planned eVED. The government plans Electric Vehicle Excise Duty (eVED) from April 2028, alongside VED: 3p per mile for electric cars and 1.5p per mile for plug-in hybrids. This is proposed for April 2028, subject to legislation and implementation; it is not a charge currently in force. The stated rates are planned starting rates, with CPI uprating proposed from 2029/30 and later cash rates not confirmed. An agreement spanning introduction needs the funder’s written treatment of the charge and later changes. Check the government’s consultation response and final implementation guidance before committing.

smart #5 charging: Pro and the 100 kWh versions differ

smart’s current UK #5 table gives a 30-minute 10-80% DC charging benchmark for the 76 kWh Pro using suitable 150 kW equipment. For the current 100 kWh versions, including Pro+, the benchmark is 18 minutes using a suitable 400 kW charger. Those two figures describe different specifications and test conditions. They do not establish the stop you will experience at every public site or apply to #1 and #3.

Match the quoted model year, battery, drivetrain and charging equipment before using either benchmark. Battery temperature, arrival charge, charger capability and conditions affect the actual session. Plan recurring long journeys using chargers you can access, with an alternative if a site is busy or unavailable. At home or work, consider the time the car normally stays parked rather than its peak DC headline. Actual electricity tariffs and charging opportunities are more useful to the running-cost calculation than assuming every smart uses the same energy or charges at the same speed.

smart warranty and Integrated Service Package: confirm each part

The UK base vehicle-warranty terms state three years with unlimited mileage, subject to their conditions. An Integrated Service Package can extend particular provisions, but its inclusion in an IVF quotation should not be presumed. Ask for the package name, commencement date, eligibility and exact elements supplied with the car. A headline package description is not a substitute for those documents.

High-voltage battery and component cover have their own terms and may vary by model. Obtain the relevant time, mileage and capacity-retention provisions for the exact #1, #3 or #5. Scheduled maintenance, tyres, roadside assistance and defect cover do not necessarily run for the same period. For a longer agreement, identify what happens after the vehicle warranty ends. The servicing location and authorisation process also matter if the car supports daily business travel. Keep the manufacturer package separate from any additional funder maintenance so you can see where responsibilities overlap or leave a gap.

Build the quotation around the way you will use it

Tell IVF your annual mileage, regular passengers, essential equipment, charging access where relevant and preferred timing. Ask for the precise model year, derivative, options and registration status to be written into the quotation. The catalogue is a starting point; the offered vehicle and funder terms need confirmation.

Business Contract Hire is taken by the business; Personal Contract Hire is taken by the private individual. Both are subject to status and individual funder criteria. Compare the initial rental, term, mileage, maintenance and applicable fees on the same basis. An initial rental is part of the hire cost, not refundable security or ownership equity.

A manufacturer warranty starts under the supplied car’s warranty terms, normally from first registration. Its time and mileage limits may finish before your lease does. It is separate from optional servicing and tyre cover. Confirm maintenance inclusions, insurance responsibilities, tax provisions and early-termination terms before signing.

At the end of contract hire, return the vehicle; there is no contractual purchase option. Excess mileage, damage beyond the funder’s fair wear and tear standard, missing equipment or other contractual charges may still be payable. Check the return process before choosing your agreement.

Useful next steps

Use business car leasing, personal contract hire, company-car tax guide, VAT on business leasing, request a callback, electric car leasing, Hyundai IONIQ 9, MG MGS6, Business Contract Hire, MINI Aceman, Skoda Elroq, Geely EX5 to narrow your choice or discuss a quotation.

smart leasing questions

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Intelligent Vehicle Finance is a trading name of XLCR Vehicle Management Ltd. Authorised and regulated by the Financial Conduct Authority, FRN 315268. We are a credit broker, not a lender, and we may receive a commission from lenders for introducing you to them. All vehicle finance is subject to status and individual funder criteria.

Company No. 03923327. The Melville Building, 15 Royal William Yard, Plymouth, PL1 3RP.

Editorial responsibility: Stacey Smith, Brand Director, Intelligent Vehicle Finance.

Last updated: September 2026