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LEX AUTOLEASE RESEARCH: Doffing a cap to falling caps

Date: 06 January 2014   |   Author:

Although 2010 is still the dominant year in terms of when a CO2 cap was introduced, the past two years have seen significant numbers of fleets introduce a limit on their fleet vehicles.

Chandler believes that fleets serious about a relevant CO2 cap need to have it somewhere between 100-130g/km.

"I think 130g/km is now where 160g/km was. 160g/km was relevant when there were tax breaks at that level, but now that lease accounting and writing down have moved to 130g/km, you would have to question some of the higher caps," he says.

"If you want to do it seriously, it needs to be in the 100-130g/km region. It depends on the business's cars; they may not want to have different levels, but certainly we would be looking at 100-130g/km depending on the requirement of the customer."

A good number of respondents professed to having hybrids and alternative-fuelled cars on their fleet. More than six out of 10 have petrol or diesel hybrids such as the Toyota Prius within their business, which compares with 50% two years ago. Chandler puts that down, at least in part, to companies having a diesel-only policy, rather than specifically excluding hybrid technology.

But in 2013 we have also asked about whether fleets have electric or plug-in vehicles on their fleet. While 64.3% said they hadn't yet dabbled in the latest technology, 7.1% have a pure-electric model, and 21.4% said they have at least one plug-in hybrid. 

Average New Vehicle Co2

Light commercial vehicles on the move

While the focus remains on car emissions - they are, after all, dominant in terms of volume, and change can be driven by business and personal taxation - light commercial vehicle CO2 is also plunging.

Since the end of 2011, the average emissions of new LCVs signed onto Lex Autolease contracts has dropped from 223g/km in December 2011 to 178g/km at the end of August 2013, or 20.2% (see table below). In the same period, emissions for new car contracts dropped by 8.5% from 141g/km to 129g/km.

"Commercial vehicles are very much playing catch-up, and I'm not necessarily being negative against commercial vehicle operators," Lex Autolease's principle consultant Chris Chandler tells BusinessCar. "Where the tax network in place for company cars was of much greater focus, there weren't those streams for LCVs."

He said operators are starting to appreciate the increased efficiency and its importance for light commercial vehicles, but it is still prioritised behind load capacity, fitness for purpose and accessibility.



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