Budget 2012: Increased leasing cost of sub-95g/km cars could lead to more outright purchase

Date: 21 March 2012

Leasing cars with emissions of less than 95g/km could prove more expensive than purchasing them outright from April 2013, after the chancellor announced leasing companies will no longer be able to claim 100% writing down allowance in the first 12 months, as will be the case for vehicles bought directly by companies.

The current 110g/km threshold for writing down allowance will shift to 95g/km in 2013, but the chancellor took the surprise decision to specifically exclude leased cars in a move described by the BVRLA as discriminatory. The leasing industry's trade association vowed to lobby the treasury to overturn the decision that could tip buying decisions firmly in favour of buying outright by increasing the lease cost of low-emission models.

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