Despite increasing lease rental costs over a typical three-year term by almost £600 for those cars in the highest category for CO2 emissions (255+g/km), the new Vehicle Excise Duty rates, to be introduced in April, may actually present fleets with the chance to save thousands of pounds, according to Lombard.

By switching from one model to a similar but lower-emitting alternative within the same class, fleets can save up to £330 per vehicle over three years.

“Although the effect of the new VED regime on the monthly rentals for most cars will only be between around £0.50 and £5.00, the effect over the lease term, even for many small fleets, will be substantial, especially given the ongoing economic uncertainty,” says Paul Connor, head of portfolio management for Lombard Vehicle Management.