Peugeot 508 Hybrid running costs, insurance, warranty & tax
Plug-in hybrid tax breaks mean the 508 Hybrid makes a lot of sense for company-car users; strong warranty offers great peace of mind
|Insurance group||Warranty||Service interval||2021/22 company-car tax cost (20%/40%)|
|31-33||3yrs / unlimited miles||1yr / 20,000 miles||From £791 / £1,582|
As you'd expect, a large part of the 508 Hybrid's appeal is a reduced cost of ownership compared to its conventionally powered stablemates. While savings on fuel speak for themselves – especially if you can keep the car's battery topped up – in other aspects of ownership, the 508 does well to be competitive with its closest rivals. Perhaps the most important aspect of a car like this is its suitability for company-car users, and with low CO2 emissions it certainly doesn't disappoint. Private buyers will have to foot up a substantial chunk over the internal-combustion models, however, so it's worth doing your sums first to see if these reduced running costs are worth the extra cash (or higher monthly finance payments).
Peugeot 508 Hybrid insurance group
The Peugeot 508 Hybrid sits in insurance group 31 or 33, depending on trim level, with Allure models proving slightly cheaper to insure presumably due to their relative lack of expensive-to-replace equipment. For context, the Skoda Superb iV starts in group 25, while the BMW 330e starts in group 33.
All Peugeot cars get a two-year/unlimited-mileage warranty as standard, with a third optional year offered for free. This compares favourably with the more conservative mileage limits on some rivals' warranties; Skoda has a 60,000-mile limit on its optional third year, while BMW's warranty is capped at 100,000 miles.
Exact servicing costs for the 508 Hybrid are still to be confirmed, but Peugeot lets owners pay for a plan either up-front or in small monthly instalments. On petrol and diesel models, the cost range from around £14 to £17 per month depending on how many miles or months of coverage you pick; expect the Hybrid to be slightly more than this, but not by much.
As with so many plug-in hybrids, the 508 Hybrid appeals to company-car users most. Its Benefit-in-Kind (BiK) rate of just 11% during the 2021/22 financial year equates to £791 per annum for 20% taxpayers, however that'll increase as the BiK rate is set to increase to 2% for 2022/23 – still significantly less than the 28% incurred by the entry-level diesel 508. First-year road tax is free thanks to those low CO2 emissions, followed by annual payments of £145. If you manage to spec your 508 to break the £40,000 barrier (GT models start just above this threshold) then you'll have to pay an extra £335 a year on top of this in years two through six of ownership.
In This Review
- 1VerdictThe Peugeot 508 plug-in hybrid executive car is a good effort, hitting all the right notes for company users – but it seems too expensive for private buyers
- 2Range, MPG, CO2 & chargingAs with all plug-in hybrids, getting the best fuel economy from the 508 Hybrid depends on keeping the battery topped up; CO2 emissions are low
- 3Running costs & insurance - currently readingPlug-in hybrid tax breaks mean the 508 Hybrid makes a lot of sense for company-car users; strong warranty offers great peace of mind
- 4Performance, engine & driveThe 508 Hybrid isn't quite up to BMW standards of driver involvement, but it's a comfortable and enjoyable car nonetheless
- 5Interior, dashboard & comfortThe 508 Hybrid's interior is a showstopper and you'll be happy to spend lots of time in it
- 6Boot space, seating & practicalityStriking styling and a rakish roofline don't dent the 508 Hybrid's practicality too much; nor does the battery
- 7Reliability & safety ratingAs with all Peugeots, the 508 Hybrid is very safe and should be built to last, but the reliability of its new drivetrain is largely unproven