IF you’re a director of an SME, or business owner, you can still drive a large executive car, but without an environmental penalty argues Martin Brown, Fleet Alliance managing director.
THERE has been no shortage of exciting, new executive cars recently.
No doubt many directors and company owners are considering these new cars for their next business car. What’s even better, though, is the fact that these new cars are not only classy, but green, too.
Amongst the latest is the new Audi A7 (above), a coupe-styled executive hatchback which has CO2 emissions of just 139g/km and an average fuel economy of 53.3mpg. And all this from a 3.0-litre V6 TDI engine, proving that it is possible to be green at the top end of the market.
And its stable-mate, the all-new Audi A6 (pictured) goes one better with emission levels of just 129g/km for the 177PS 2.0-litre TDI which also offers fuel economy of 57.7mpg. The A6 range will also include a hybrid 2.0-litre TFSI petrol/electric drivetrain delivering 45.6mpg.
BMW, meanwhile, with its EfficientDynamics range, offers 24 models with emissions below 140g/km including the 520d saloon (above) and the 520d Touring estate car. Within the range, the BMW 320d EfficientDynamics saloon (pictured below) boasts a highly impressive 109g/km – emissions low enough to qualify for 100% first year writing down allowances.
Average carbon emissions are continuing to fall across the country. The Society of Motor Manufacturers and Traders reports that the 2010 CO2 average fell 3.5% to 144.2g/km – a drop of 36.8g/km from the 2000 level (equal to a 20.3% reduction).
This is certainly a trend that Fleet Alliance has witnessed on its own fleet as carbon emissions of new vehicles have fallen to a new low as a result of clients following our advice to select the greenest, most fuel and tax-efficient cars available.
The average emissions for new vehicles ordered by Fleet Alliance in the six months from January to June fell to 142g/km as both companies and drivers became increasingly convinced of the tax efficiencies of the new, lower-emitting vehicles.
The new figures represent a fall of 5.6% over the average emissions for the same period 12 months ago when the figure was 150g/km.
The point I’m making here is that, if you’ve felt constrained from setting green car policies right across your company’s car fleet, including cars for your company’s directors because of the lack of choice of suitable executive models, then this is no longer the case.
In addition, the lower CO2 means lower costs, lower fuel consumption and lower taxes.
Selecting the correct company cars is particularly important in the light of tax rises that came into effect in April and which will have a continued impact in the coming years. The rises have increased the need to focus on whole life costs as the most effective way of putting together a company car policy, as they provide the best forward estimate of the true costs to the business.
The cumulative effects of the various tax increases – Vehicle Excise Duty, fuel duty, the ‘showroom tax’ plus January’s 20% VAT increase – are starting to hit home, and will continue to do so for the next few years. Businesses will see their company car costs rising in future unless they take action now.
Without taking a holistic approach to vehicle selection, however, it is easy to make the wrong decisions. That’s why using whole life costs to inform selection is essential in getting vehicle choice right now – and going forward.
