Greener cars ‘could save £600 a year’

FINALLY, after years of waiting, being green will pay its way with revolutionary new legislation on the taxation of company vehicles coming into force next year.

Annual road fund licences will vary between £35 and £400 per vehicle — and writing-down allowances on owned vehicles will be either 10% or 20% pa. Second-hand values will favour green and economical models.

Fuel economy and the cleanliness of an engine will contribute to massive savings. But costs will increase if you choose a non-green variant.

The greenness of a car is measured in its 002 emissions; 160 gms/km or below is the Holy Grail fleets should be seeking. The latest models from the top manufacturers are streets ahead of their more aged offerings. The latest green C Class Mercedes saloon, for example, achieves 13% better fuel economy, dropping below the magic 160 emissions mark. Volvo’s new S40 i-drive is 29% more fuel-efficient than the original base models.

As part of the Devon business community, we tend to travel further than our counterparts in other regions. For example, if you travelled 15,000 miles a year in the Volvo, your annual fuel bill would drop by £345 at current prices if you chose the i-drive model over its predecessor.

The 003 drops below 160 so there are 20% writing-down allowances available, a lower annual road fund licence, and every likelihood of the car having a better resale value in the future. This package could easily add up to a cost saving of £500 to £600 per annum per vehicle for Plymouth-based business. On an average three-year holding period that could be as much as £1800 per vehicle.

The gap between the haves and have-nots will never be wider, so make sure your fleet’s on the right side of the divide. Do your research before picking that new vehicle and help steer the South West forward on

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