Fleet managers who choose cleaner vehicles are realising huge savings as millions of pounds of incentives are now directed at firms with cars that hit CO2 targets.
Since the launch of CO2-based benefit-in-kind tax for company cars, the fleet market has been transformed as drivers and companies have shifted to lower emission vehicles.
John Lewis, chief executive of the BVRLA, said: “We have seen the fleet sector make tremendous progress in reducing CO2 emissions by introducing more fuel-efficient vehicles and introducing careful travel planning.
“Meanwhile, the corporation tax changes coming in April this year are set to give a massive incentive.”
From April 2009, six new bands of vehicle excise duty (VED) will be introduced, taking the total to 13, but will not increase by more than £5 for any car in this year.
However, from April 2010, a differential first-year rate for new vehicles will be introduced in order to provide a stronger signal to consumers at the point of purchase, according to the government.
The more polluting cars will see their duty increased up to a maximum of £30 and less polluting cars will see it stay the same or cut.
But Mr Lewis believes the momentum towards lower emissions will be severely challenged by the economic downturn, which will see less cars added to fleets.
However, as it stands manufacturers have more lower-emitting vehicles being launched in 2009 and the list of the most popular vehicles with fleet managers from Lex reveals sub-160g/km cars are a major consideration, with Ford, Volkswagen and BMW featuring.
- To research cars' CO2 levels visit our running costs section.
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