Fleet News

Downsize incentives not working - ACFO poll

GOVERNMENT incentives to downsize vehicles to less than 1,100cc to cut Vehicle Excise Duty bills have had little to no effect on fleet buying policies, according to a poll of 30 members of the Association of Car Fleet Operators. In the poll, taken at a Midlands regional meeting, found that none had changed buying patterns to take advantage of the £55 drop in VED for smaller engined cars from June 1.

Members also said they had no intention of downsizing vehicles in the future to take advantage of the new £100 VED rate for cars powered by sub-1100cc engines. Vehicles powered by engines of more than 1,100cc will continue to be subject to VED at £155.

Joshua Ralhan, secretary of Midlands ACFO, said: 'It's just too much of a drop in engine size. If the cut-off point had been 1.4-litres, then things might have been very different. No fleet manager can seriously consider making the jump to 1.1-litre. It's too big a leap downwards and would cause a human resources nightmare with the drivers.'

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