Used sales’ green future
February 11th, 2009 by Richard Aucock
USED car sales in the future will be dominated by low emission cars, as fleets increasingly prioritise CO2.
Tax changes mean CO2 is becoming the key buying factor for company cars – particularly cars emitting less than 160g/km of CO2.
As the fleet sector takes on over half the new UK market, the implications for used car dealers will be immediate.
Indeed, contract hire and leasing company ALD Automotive says that changes to business car capital allowances, due this April, will have an even bigger effect on the car market. It reports that many fleets are reviewing fleet car chooser lists and policies.
As an illustration of this, the company said that, in 2003, its fleet average emissions were 166g/km. In 2008, this plummeted, to an all time low of 150g/km.
What’s more, as an illustration of how quickly changes are occurring, it also said that the average CO2 figure for a car added in December 2008 was 147g/km.
Significantly, it reveals, fleets are also cutting their annual mileages, to reduce fuel bills and personal tax payments.
This will mean more lower-mileage used cars on the market, which may result in rising prices.
In 2003, the average annual contracted mileage for company cars was 22,475 miles. Last year, this had fallen to 19,049 miles.
ALD Automotive marketing director David Yates said: ‘Fleet decision-makers will become very aware of the increased premium they’ll have to pay to run high emissions vehicles, compared with lower polluting models.
‘Historically, most customers will have been unconcerned with their post-tax position, but the financial implications are now extremely important and can no longer be overlooked.’
Further benefits of low emission models for company car drivers include:
• Improved fuel economy
• Savings in company car benefit-in-kind for drivers
• National Insurance savings for firms
• Road Fund Licence
• Residual values better than high-emission models
 |  |  |