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.'

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee