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New vehicle emissions hit record low at Fleet Alliance
27 September 2010
Carbon emissions of new vehicles at contract hire and fleet management specialist Fleet Alliance have fallen to a new low as a result of clients following the company’s advice to select the ‘greenest’ cars possible.
The average emissions for new vehicles ordered by Fleet Alliance in the six months from January to June fell to 142g/km as both companies and drivers became increasingly convinced of the tax efficiencies of the new, lower-emitting vehicles.
The new figures represent a fall of 5.6% over the average emissions for the same period 12 months ago when the figure was 150g/km.
Fleet Alliance, which manages a fleet of over 8,500 vehicles on behalf of corporate customers, has seen emissions fall across the board but especially from the four brands that make up the Volkswagen Audi Group – Volkswagen, Audi, SEAT and Skoda – which between them accounted for 40% of the sales mix in the six months in question.
Earlier this year, the Government announced changes to the tax systems governing company cars, including benefit-in-kind taxation, national insurance and capital allowances, which made carbon-efficient tax planning vital to keep operating costs in check.
“The message that lower CO2 equals lower costs, lower fuel consumption and lower taxes is now gaining impetus and we have pushed it very hard with our clients. By making the right vehicle choices now, fleet decision makers can make cost savings running into several thousand pounds over the typical three year life of a vehicle,” said Fleet Alliance managing director, Martin Brown.
The tax rises that came into effect in April have also increased the importance of focusing on whole life costs as the most effective way of putting together a fleet policy and identifying the most suitable vehicles, as they provide the best forward estimate of the true costs to the business.
Fleet Alliance says the rises, which include Vehicle Excise Duty, fuel duty, a new ‘showroom tax’ plus the increase in VAT to 20% in January, increase the cost burden on fleet operators at a time when many companies are still struggling to come out of recession.
“The cumulative effects of the various tax increases are starting to hit home, and will continue to do so for the next few years. Businesses will see their fleet costs rising in future unless they take action now. Without taking a holistic approach to vehicle selection, however, it is easy to make the wrong decisions. That’s why using whole life costs to inform selection is essential in getting vehicle choice right now - and going forward,” said Martin Brown.
In essence, whole life costs reflect all projected, vehicle-specific costs associated with operating a vehicle over its fleet life, including depreciation, funding, servicing, maintenance and repairs, VED, insurance, fuel (for business mileage), CO2 taxation impact, Class 1A NIC payments and VAT on the fuel scale charge for private use, if provided.
Martin Brown added: “There are very real financial and environmental benefits for all companies in planning their fleet policy over the next three or four years to maximise its carbon efficiency, using a whole life cost approach.
“Our advice would be to always seek independent, impartial advice from your fleet management company in helping devise the most tax and cost efficient fleet policy,” he said.
27 September 2010
Carbon emissions of new vehicles at contract hire and fleet management specialist Fleet Alliance have fallen to a new low as a result of clients following the company’s advice to select the ‘greenest’ cars possible.
The average emissions for new vehicles ordered by Fleet Alliance in the six months from January to June fell to 142g/km as both companies and drivers became increasingly convinced of the tax efficiencies of the new, lower-emitting vehicles.
The new figures represent a fall of 5.6% over the average emissions for the same period 12 months ago when the figure was 150g/km.
Fleet Alliance, which manages a fleet of over 8,500 vehicles on behalf of corporate customers, has seen emissions fall across the board but especially from the four brands that make up the Volkswagen Audi Group – Volkswagen, Audi, SEAT and Skoda – which between them accounted for 40% of the sales mix in the six months in question.
Earlier this year, the Government announced changes to the tax systems governing company cars, including benefit-in-kind taxation, national insurance and capital allowances, which made carbon-efficient tax planning vital to keep operating costs in check.
“The message that lower CO2 equals lower costs, lower fuel consumption and lower taxes is now gaining impetus and we have pushed it very hard with our clients. By making the right vehicle choices now, fleet decision makers can make cost savings running into several thousand pounds over the typical three year life of a vehicle,” said Fleet Alliance managing director, Martin Brown.
The tax rises that came into effect in April have also increased the importance of focusing on whole life costs as the most effective way of putting together a fleet policy and identifying the most suitable vehicles, as they provide the best forward estimate of the true costs to the business.
Fleet Alliance says the rises, which include Vehicle Excise Duty, fuel duty, a new ‘showroom tax’ plus the increase in VAT to 20% in January, increase the cost burden on fleet operators at a time when many companies are still struggling to come out of recession.
“The cumulative effects of the various tax increases are starting to hit home, and will continue to do so for the next few years. Businesses will see their fleet costs rising in future unless they take action now. Without taking a holistic approach to vehicle selection, however, it is easy to make the wrong decisions. That’s why using whole life costs to inform selection is essential in getting vehicle choice right now - and going forward,” said Martin Brown.
In essence, whole life costs reflect all projected, vehicle-specific costs associated with operating a vehicle over its fleet life, including depreciation, funding, servicing, maintenance and repairs, VED, insurance, fuel (for business mileage), CO2 taxation impact, Class 1A NIC payments and VAT on the fuel scale charge for private use, if provided.
Martin Brown added: “There are very real financial and environmental benefits for all companies in planning their fleet policy over the next three or four years to maximise its carbon efficiency, using a whole life cost approach.
“Our advice would be to always seek independent, impartial advice from your fleet management company in helping devise the most tax and cost efficient fleet policy,” he said.
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