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Right mix of cars key to green business motoring

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New BMW 320d EfficientDynamics: low CO2

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24 August 2009

BMW 320d EfficientDynamics saloon
New BMW 320d EfficientDynamics: low CO2

HAVING the right cars will be essential if business car motoring is going to meet government CO2 emission targets. Mark Sinclair, director of leasing company Alphabet, explains.

THE right cars at the right time. That will be the key to meeting challenging government CO2 targets for business motoring.

By 2020, all new vehicles will have to conform to average CO2 emissions of 95g/km. To put that into perspective, that figure represents almost half the CO2 output of a typical 2.0-litre petrol car today. If you replace your business car – say on a contract hire cycle – every three years, that’s only two and a half replacement cycles away.

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As you cannot expect your staff that have to drive a high-mileage for your business in very small cars with the same degree of comfort and safety as a larger car, the onus must be on car makers to deliver those cars that are appropriate for such business requirements. And yet these cars must emit much less CO2.

However, we’re seeing rapid advances in the efforts to reduce emissions of diesel and petrol cars. So we reckon there will be plenty of options for business car managers by the time the 95g/km deadline arrives.

Just recently, for example, BMW has announced the new BMW 320d EfficientDynamics saloon, which offers very similar performance as the conventional 320d model but emits just 109g/km of CO2. It will be available from next year.

This kind of attractive, capable product – and we expect to see more from car makers in addition to BMW – will be crucial to shaping drivers’ perceptions of what low carbon cars will mean to them. As a multi-marque leasing company, we obviously welcome this trend.

As a business, you should start to consider how your company will introduce these lower emission CO2 vehicles.

Such low CO2 emissions will have both financial and operational implications for all firms that run business cars.

Further information

New EU standards adopted in April 2009 mean that by 2020 the average CO2 emissions from new cars across the EU will be 95gkm – a 40% reduction on 2007 levels.

Editor’s note on the BMW 320d EfficientDynamics saloon.

The new BMW to which Mark Sinclair refers to above is due to make its public debut at the Frankfurt Motor Show, September 2009.

The BMW 320d EfficientDynamics saloon promises CO2 emissions of 109g/km – which means businesses can claim 100% first year writing down allowances if they purchase their company cars.

However, if a business contract hires their company cars, then monthly rentals should be lower – as the leasing company ought to claim the rebate and offer it in the form of lower monthly payments. Using contract hire for a lower emission car means 100% of the rental will be allowable against the profit and loss account (see the Advice Centre story: Why contract hire can save you money).

The BMW 320d EfficientDynamics will also qualify for 13% company car tax, and £35 road tax. Its combined fuel figure is 68.9mpg.

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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