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Contract Hire, The Environment And Cost Cutting
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In the last two budgets there has been a focus on the environment and this year was no different with company car drivers continuing to be affected by reduced tax thresholds and the introduction of the ‘showroom tax', which are being deployed to encourage lower CO2 emissions.
There is also a financial consideration for road fund license which has grown significantly for larger vehicles with high emissions.
However this offers opportunities to those looking at contract hire and leasing for both personal and business use. Essentially the cost of road fund license is passed on in the monthly rental so the cheaper the road fund license the less effect on your rental.
If you are looking at a set contract hire budget it is well worth looking at a vehicle lease for a low emission vehicle. The lower the emission the lower the road fund cost and in some cases there is no cost. Vehicles with carbon emissions under 100g/km are classed in VED (vehicle excise duty) band A and therefore there is no cost.
Look out for deals on hybrid vehicles or new generation diesel vehicles with low fuel consumption and emissions. ...
... Make sure you research properly using manufacturer websites, consumer groups, the DVLA and specialist vehicle publications and you could save money on your annual motoring. There will be benefits from the rental aspect and from the cost of fuel.
The government has set carbon emissions targets and these will be a continuing factor in years to come. High polluting vehicles will undoubtable get more expensive to run and contract. If you are running a large fleet this is a place to start looking for cutting costs. Consider green vehicles which should cut costs to improve your bottom line whilst helping your status in becoming an environmental friendly business.
There is plenty of information available so research well and speak with a number of reputable contract hire brokers to find the best deal available.
Lee Tucker is a Sales Director of The Leden Group. Whether you are looking for vehicle leasing, van leasing offers, contract hire, Audi leasing or private car leasing, Leden Group will have a solution to meet your needs.
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