So the Autumn Statement came and went. Building lots of houses, income tax thresholds increased and of course a renewed attempt to balance the books along with growth forecasts in a new political and geographical economy.
Firstly salary sacrifice for cars is pretty much a thing of the past. So this may open up new opportunities for us vehicle leasing guys to help employees who had previously looked for their employers assistance when choosing their next car to choose. They will now need to enjoy transparent and honest advice, pricing and offers when looking around. One criticism I had of the programmes that I saw were that often cars were better priced through a regular broker or dealer without having to dress up salary sacrifice savings.
The main news is the Road Fund Licence (Road Tax) on new cars. This is now dependent on co2 rating (emmissions) with an extra levy for a car at over £40,000.
See below courtesy of Car Dealer Magazine
So as you can see the increased emphasis on cleaner cars is clear to be seen. However it doesn't take long to work out that many larger vehicles are going to have their pricing increased significantly.
One customer of ours who has just ordered a Jaguar F-Pace for April delivery will be swallowing a £1200 first year rate PLUS subsequent years at £140 standard Road Fund PLUS £310 'expensive car' tax on top!
So on a 3 year contract his "Road Tax" will be £2100. Whichever way he funds/leases/finances the car he will pay this. In addition the 2nd owner will also need to consider if they wish to pay £450/year road tax until the car is 6 years old - this could affect the used market as much as the new one!
So if you know people who like chunky, executive, high specification vehicles we have until April 1st to deliver their new car to avoid all of this happening. We anticipate customers taking vehicles in Spring 2017 early than they had planned to benefit from todays system.
Of course for those in to cleaner or zero emmission vehicles there is a clear incentive however from our point of view as mainly supplying businesses or business owners they will need to see more evidence of a growing network of power for their electric vehicles in order to cause as little disruption to their businesses if they do switch to electric vehicles.
Anthony K Associates are your local vehicle leasing broker. Give us a call on 0161 655 3200 to discuss your requirements. Over 20 years established from our offices in Middleton, Manchester.
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