Company cars under threat | Motoring Issues - Car News Jul 2018

MOTORING ISSUES
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08:49 Wednesday 25 Jul 2018

Mixed messages and muddled thinking from the Government is putting the future of the company car under threat, say fleet experts.

Fleet World magazine has launched a Save the Company Car campaign to put pressure on policy makers to do more to support the business car sector.

They cite British Vehicle Rental and Leasing Association statistics which show the average company car is newer and more efficient than the average privately owned vehicle, emitting on average more than 10% less CO2, is almost twice as likely to be hybrid or electric-powered, and with 87% of business fleets Euro 6 emissions complaint.

However, as Government tax hikes have discouraged businesses from offering company car schemes, the HMRC’s own latest data showed a 20,000 annual drop in the number of drivers using company cars.

Fleet World editor, Alex Grant, said, “The message is a simple one,company cars are cleaner, safer and better for business, yet the Government seems hell-bent on making life difficult for the businesses and drivers that use them. We’re getting anti-diesel tax, which is pushing up running costs, but we’re not getting Ultra Low Emission Vehicle incentives put in place to support the alternatives, and there’s very little stability being provided to help fleets make long-term decisions. The fleet sector is one of the most efficient and dynamic areas of the new car market, but the company car itself could become an endangered species if action isn’t taken quickly, and the Government starts to understand the needs of business and business motorists. Don’t over-tax fleets, or underestimate the importance of the company car. Give businesses the tools they need to forward plan, and the incentives they need to run the cleanest vehicles.”

 

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