Review

##hondac.jpg --Right##IT is always a useful exercise to become a passenger in our long-term test vehicles as it can put a whole new perspective on a car. During a lengthy trip in our long-term Honda Accord, I handed over the wheel to someone else and came to two conclusions - firstly that is it a supremely quiet, comfortable and relaxed car. But secondly, despite its highly accomplished performance, I simply did not feel I was in a car knocking on the door of ú23,000.

However, I have driven lower specification and cheaper Accords and they have been just as good, but taking out the leather electric seats, satellite navigation and some of the other goodies makes all the difference when comparing the car to rivals, bringing its price down to a more affordable ú16,595. A spell in the passenger seat also allowed me time for some number crunching - which will be the hobby of every fleet manager now that CO2-based company car tax has been revealed in all its glory.

From 2002, the taxable benefit on which a driver pays according to their higher rate tax level will be based on a percentage of a car's list price according to its carbon dioxide emissions, starting at 165g/km and 15% of list price and building up in 1% steps for every 5g/km to 35%.This replaces the current system based on 35% of list price, with a discount to 25% for drivers covering more than 2,500 business miles and 15% for those covering more than 18,000 miles. Currently, the driver of our Honda Accord would have a taxable benefit of ú7962.50 for less than 2,500, ú5687.50 for 2,500 to 17,999 and ú3,412 for over 18,000 miles.

Under the new regime, the tax charge would be according to the car's CO2 figure of 205, or 23%, so the liability would be ú5,232.50 - meaning a tax hike for the essential car user (over 18,000 miles), but cuts for the lower mileage drivers. So considering there are cheaper Hondas available, perhaps high mileage company car drivers changing their cars should think again about ticking leather and electric seats on the options list to try to keep down their tax bills.

Finally, our test car is now sporting a small dent in the front wing after another car driver tried some Braille parking - repair costs in our next report.

John Maslen

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