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Meanwhile, he's scathing of the Government's decision to remove the first-year writing-down allowance for lease companies on vehicles under 95g/km. Outright-purchase fleets can still get that benefit of writing off 100% of the car's value against tax in the first year, but that's not the case for leasing firms. Keaney calls it a "fundamental mistake" and claims it will drive some fleets away from the lowest-emitting models. The association held a seminar late last month that was attended by representatives from the fleet sector, research organisations, manufacturers and authorities, with many stakeholders claiming the new legislation is already having an impact.
"There was a consensus that the taxation change was now an obstacle to selling low-emission vehicles," claims Keaney, using a major accountancy firm's example of a car previously classed as low emissions rising in lease rate by £20 per month to £274. "The likelihood would be that there are lots of other products you can get for £250 a month; unfortunately, they emit more CO2, but customers speak with their pocket."
But the association can't see any sign of a Government U-turn. "The team here have lobbied long and hard before the change and before the legislation, but it's been passed now so it's a fait accompli," he comments. "There is no indication they have any propensity to go back on that. We understand that the Government has an affordability agenda and they are looking to make savings in every department."
Despite the disappointment about first-year allowances, Keaney says the BVRLA and its members still have a vital role to play in the adoption of low-emission vehicles.
"We are in a unique position and if the right opportunity is there we can move incredibly quickly in driving the CO2 agenda," he declares. "And it's important to get electric and low-emission cars into the used market, with all the debate about RV and leasing cost. There is no clarity at the moment, so as soon as we establish a second market for EVs the sooner we can remove some of the mist."
The BVRLA chief-executive expresses concern about the way Government incentives are being set up, questioning whether they will be enough to encourage uptake in their current form.
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