By Giles Bolton, Head of Grosvenor Leasing Corporate Finance
The new WLTP (Worldwide harmonised Light vehicles Test Procedure) comes into force in September this year, replacing the current NEDC test procedure for establishing the official fuel consumption and CO2 emissions of new cars.
On a positive note, it will give us better information about the vehicle’s we choose to drive.
So far, however, no-one is feeling the sense of harmony that these harmonised tests are promised to provide.
Confusion reigns for companies and their drivers, as we currently do not know when and how it will be introduced or the implications for benefit-in-kind, VED and national insurance.
As a result, some drivers are not sure whether to choose their next vehicle now or wait and see what happens.
Worse still, some manufacturers seem to be making pricing and specification changes causing an increase in the on the road price, a rise in CO2 (in anticipation of WLTP), and a reduction in discounts.
It means, in some cases, drivers will pay higher benefit in kind than they’d calculated when ordering the car, and at Grosvenor Leasing we’re doing everything we can to advise drivers of the shifting position, even though its out of our control.
In one extreme example of an executive car, the figures have changed dramatically; the driver being hit with almost £80 of additional tax per month than originally expected.
Company car tax @ 40%: £368.42 per month
Company car tax @ 40%: £447.31 per month
Increase: £78.89 per month
The truth is, it’s going to be a bit unpredictable for a while.
But if you need advice, we have a team of experts on hand who can help explain the current position with any vehicles you are looking to order, or for any orders you’ve already placed.
Even if you aren’t a Grosvenor customer, we’re always happy to help. Just call us on 01536 536 536.