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Fleet and business new car registrations fell slightly in February, when compared to the same month last year, according to data published today by the Society of Motor Manufacturers and Traders (SMMT).

 

There were 45,543 new cars registered to fleet and business in the month, an increase of about 1% on February 2019.

 

Year-to-date fleet and business new car registrations stand at 133,120 units, a 1% decline when compared to last year.

 

Overall, the UK new car market declined 2.9% in February, with 79,594 models were registered in the month. Registrations by private buyers were responsible for the bulk of the overall loss, down some 7.4% as 2,741 fewer people took delivery of new cars.

 

Demand for both diesel and petrol cars fell in the month, with registrations down 27.1% and 7.3% respectively, with diesel now accounting for just over a fifth of sales (21.9%).

 

Hybrids (HEVs) recorded an uplift of 71.9% to 4,154 units, while registrations of zero emission capable cars also continued to enjoy growth, with battery electric vehicles (BEVs) rising more than three-fold to 2,508 units and plug-in hybrids (PHEVs) up 49.9% to 2,058.

 

However, these vehicles still make up just 5.8% of the market; and BEVs only 3.2%, showing the scale of the challenge ahead.

 

The news comes as SMMT calls on the Chancellor to use next week’s Budget to announce bold new measures to make new-tech zero emission-capable cars, including plug-in hybrids, more affordable for mass market buyers.

 

In 2020, manufacturers will bring more than 23 new battery electric and 10 plug-in hybrid electric cars to the UK to add to the more than 65 already on sale, but take up of these new models depends on affordability and the provision of adequate charging infrastructure.

 

SMMT is calling for the removal of VAT from all new battery electric, plug-in hybrid electric and hydrogen fuel cell electric cars – a move which would cut the purchase price of an average family battery electric run-around by some £5,600.

 

Combined with additional measures, including the long term continuation of the critical plug-in car grant at current levels and its reintroduction for plug-in hybrids; and exemption from VED and insurance premium tax, the upfront cost of these vehicles could be cut by as much as £10,000, helping to deliver greater cost parity with conventionally powered vehicles and making them a viable option for many more buyers, it says.

 

Based on current market forecasts, SMMT calculations show that the removal of VAT could increase sales of battery electric cars alone to just under one million between now and 2024, resulting in an additional CO2 saving of 1.2 million tonnes over this period.

 

However, this must be part of a comprehensive package of incentives implemented alongside substantial investment in charging infrastructure to ensure a sustainable transition for consumers and businesses of all incomes, regions and lifestyles, it says.

 

Only by addressing both these issues can the government’s accelerated ambitions for zero emission vehicle sales be met.

 

Mike Hawes, SMMT chief executive, said: “Another month of decline for the new car market is especially concerning at a time when fleet renewal is so important in the fight against climate change.

 

“Next week’s Budget is the Chancellor’s opportunity to reverse this trend by restoring confidence to the market and showing that government is serious about delivering on its environmental ambitions.

 

“Industry has invested in the technology, with a huge influx of new zero- and ultra-low emission models coming to market in 2020, and we now need Government to match this with a comprehensive package of incentives and infrastructure spending to accelerate demand.

 

“To drive the transition to zero emission motoring, we need carrots, not sticks – as the evidence shows, talk of bans and penalties only means people hang on to their older, more polluting vehicles for longer.

 

“It’s time for a change of approach, which means encouraging the consumer to invest in the cleanest new car that best suits their needs.

 

“If that is to be electric, Government must take bold action to make these vehicles more affordable and as convenient to recharge as their petrol and diesel equivalents are to refuel.”

 

Michael Woodward, UK automotive lead, Deloitte, believes the key to maintaining growth of EVs will be investment in the supporting infrastructure.

 

“Where consumers were once deterred by battery range anxiety, this has now shifted to charging anxiety with access to charging now being seen as the biggest barrier to buying a full EV for UK customers,” he said.

 

“Manufacturers are doing their part by bringing new models to the market and adding range to batteries. What consumers need now is clarity on joined-up, long-term infrastructure development and continued financial incentives could be key to future EV growth.”

 

Jon Lawes, managing director at Hitachi Capital Vehicle Solutions, concluded: “The industry will be eagerly anticipating the Government’s Spring Budget next week, where further measures to support the transition to zero-emission vehicles are expected to be announced.

 

“As SMMT calculations have shown, the removal of VAT on electric and hybrid vehicles is one step that could support this transition, however, for any solution to be effective, clarity on considerations including Clean Air Zones, infrastructure investment and plug-in car grant incentives will also be pivotal to help achieve the UK’s zero emission targets.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By Graham Hill thanks to Fleet News

I mentioned last week that as of the 1^st April 2020 the new WLTP emissions ratings come into force. This will affect drivers’ benefit in kind tax if you drive a company car but it could also affect the 1^st year road fund licence costs which could also increase the rental costs as this is part of the ‘on the road’ cost of the car. So if you’ve been quoted on a car that will be delivered after 1^st April you could be paying a little more per month.

 

Some company cars could disappear from choice lists as new emissions test results put them beyond CO2 thresholds used by fleets.

 

Data published by manufacturers show some vehicles that were below 130g/km or 110g/km, using the NEDC-correlated CO2 figure, now fall outside those key benchmarks, thanks to the tougher testing regime.

 

The new CO2 values, derived from the Worldwide harmonised Light vehicle Test Procedure (WLTP), will be used for tax purposes for all new cars registered from April.

 

However, as manufacturers begin to publish the data, fleets are finding that the new test has seen CO2 values for some cars increase.

 

For example, the BMW 520d M Sport originally had a NEDC-correlated CO2 figure of 108g/km, but under WLTP it has risen to 131g/km.

 

It’s a similar story for the Volvo XC40 D3 R Design, which will increase from 127g/km to 144g/km, and the Volkswagen Tiguan 2.0 TDI SE L, which will rise from 122g/km to 156g/km.

 

“We’re seeing a lot of vehicles breaching the 110g/km and even the 130g/km cap,” said David Bushnell, principal consultant at Alphabet GB.

 

It means some familiar models on today’s choice lists will have to be replaced by more tax-efficient, hybrid or fully electric versions.

 

Bushnell says the impact of WLTP on fleets will be comparable to the “re-set” of company car policies in 2002, when taxation moved from mileage to CO2.

 

Emissions caps for vehicles used by some fleets have followed the downward trajectory of the threshold for capital allowances and lease rental restrictions.

 

The main threshold for capital allowances and lease rental restrictions was reduced from 130g/km to 110g/km in 2018, after originally being cut from 160g/km in 2013.

 

Under capital allowance rules, cars bought by companies that emit up to 50g/km are eligible for 100% write-down in the first year; for those emitting 51-110g/km, it’s 18% a year; and for more than 110g/km it is 6% a year.

 

Under the lease rental restriction, new cars with emissions of 110g/km or less are eligible for 100% of their lease payments to be offset against corporation tax. For those with emissions of 111g/km or more, only 85% is claimable.

 

The Government refused to consider the impact of WLTP on capital allowances and the lease rental restriction when last year it launched a consultation on what it should do to mitigate its effect on company car tax and vehicle excise duty (VED).

 

Bushnell called for their inclusion at the time but says Treasury “weren’t prepared to talk about the (110g/km) derogation and now we’re seeing a lot of vehicles impacted”.

 

Fleets have used the CO2 thresholds to benchmark their emissions cap to ensure they are as tax efficient as possible.

 

Nick Hardy, sales and marketing director at Ogilvie Fleet, says 130g/km became the norm for many companies, with an increasing number choosing the lower 110g/km cap.

 

Faced with some cars potentially falling outside company car policies, because of an increase in CO2, he urged fleets not to be tempted to increase their cap to simply maintain vehicle choice.

 

He explained: “It’s not the right thing to do; it completely defeats what we’re all trying to achieve.”

 

However, in the short term, while WLTP CO2 data is still missing on many models (see page 4), Bushnell thinks fleets could consider a temporary removal of CO2 caps.

 

He said: “It’s not exactly palatable, but the issue is we could be delivering a car that we perceive is below the cap, but then by the time it’s configured and registered, it’s actually over the cap.”

 

Not only are large swathes of CO2 data missing for base models, but the impact of vehicle options on the final figure is also an issue for fleets.

 

Bushnell urged fleet operators to allow wholelife costs to guide vehicle choice.

 

Wholelife costs take account of several factors, including fuel, employer Class 1A National Insurance Contributions, service, maintenance and repair, and insurance, as well as any cash allowances paid to employees.

 

Bushnell said: “You’ve got to be looking at your choice list on a wholelife cost basis, but there are still a lot of businesses that don’t.”

 

PricewaterhouseCoopers (PwC) has previously reported that just 32% of employers offering company cars use wholelife costs to determine the vehicles available.

The future of the plug-in car and van grant is expected to be revealed by the new Chancellor in the Budget in March.

 

The electric car and van subsidy was cut in 2018 by £1,000 and fleets were told it would no longer apply to hybrid cars with a range of less than 70 zero emission miles.

 

The Government said the reduction in funding – from £4,500 to £3,500 – for the cleanest cars, and withdrawing the grant completely for the likes of the Mitsubishi Outlander PHEV and the Toyota Prius Plug-in, was a sign of its success.

 

Talking to delegates at the ICFM’s annual conference last summer, deputy head of the Office for Low Emission Vehicles (OLEV), Phil Killingley, acknowledged that incentives will be of continued importance beyond 2020, but stressed the detail was still being “talked through”.

 

Meanwhile, the Treasury told the Telegraph that “consumers incentives will continue to play a role beyond 2020”.

 

A Whitehall source said: “We have always said we would phase out the subsidies gradually, but there are other ways we can help people to go electric.”

 

BVRLA chief executive, Gerry Keaney, says that the Budget on March 11 will be an opportunity to set the tone for a new decade in which the transition to decarbonised road transport will be won or lost.

 

“Fleets are being asked to invest billions of pounds in new electric vehicle technology and infrastructure, which comes at a hefty price premium to its petrol and diesel alternatives,” he said.

 

“To achieve these goals the Government must provide a clear support package through to at least 2025. It must preserve the Plug in Car and Van Grants, maintain a strong set of tax incentives and tackle the huge and often arbitrary costs associated with fleet charging infrastructure.”  By Graham Hill thanks to Fleet News

As many of my readers know I have written about this in the past because it can be very confusing. My work with the BBC and various motoring journals has highlighted some of the crooked methods to extract large ‘deposits’ from customers then mis-state the law in order to prevent paying money back when the customer decides not to go ahead with a purchase.

 

A law firm has given advice to dealers as follows:

 

It has long been thought that if a consumer decides to pull out of a car purchase having paid a deposit, that the car dealer is automatically entitled to retain that deposit.  However, there are several important considerations that need to be met before that is allowable, the first of which is especially relevant.

 

1. The Consumer Rights Act 2015 says that a contract term may be considered unfair (and thus unenforceable) if it is “A term which has the object or effect of permitting the trader to retain sums paid by the consumer where the consumer decides not to conclude or perform the contract, without providing for the consumer to receive compensation of an equivalent amount from the trader where the trader is the party cancelling the contract. We are advising that your terms/conditions, order form and any document that makes reference to a non-refundable deposit, be reworded as below, followed (where possible) by the consumer’s signature:

 

“By paying a deposit you are entering into a legally binding contract.  If you change your mind and do not pay the balance due, you will be in breach of contract and we will be entitled to retain the deposit in full and not return it to you.  However, if we are in breach of contract and do not agree to sell you the car upon payment of the balance, we will return your deposit in full and you may be entitled to additional compensation from us up to the full value of the deposit amount”.

 

2. The amount of deposit is the most you can retain. You cannot retain a deposit and then on top of that seek losses such as prep time or having to re-advertise or re-selling at a lower value.  The whole purpose of a deposit is that it gives certainty as to what can be lost in the event of contractual beach – regardless of whether your actual loss is greater or less than the amount of the deposit.  HOWEVER………

 

3. The deposit figure must be proportionate to the value of the vehicle – you cannot simply seek to punish the buyer by making him pay a hugely disproportionate deposit and retaining it if he or she does not pay the balance. The Court of Appeal ruled in 2016 (and gave a new test of what is allowable) and removed the test of “reasonable pre-estimate of loss” and “penalty clauses” and replaced it with this, somewhat wordy conclusion:

 

“The true test is whether the impugned provision is a secondary obligation which imposes a detriment on the contract-breaker out of all proportion to any legitimate interest of the innocent party in the enforcement of the primary obligation. The innocent party can have no proper interest in simply punishing the defaulter. His interest is in performance or in some appropriate alternative to performance.[Emphasis added].”

 

4. Whilst the courts – and only the courts can decide – we think that a deposit that is greater than 10-15% of the value of the car might be seen as difficult to justify except in very rare circumstances. Maybe where something is being built to such an unusual, bespoke and personal specification that the sale to anyone else other than the actual buyer would be compromised substantially or could only be re-sold at a price significantly less than agreed with the intended buyer (who then did not pay the balance after the deposit was made).

 

5. Where a deposit is taken in contemplation that the car will be financed by, say a hire-purchase agreement, the deposit must be refunded if the consumer withdraws from the deal BEFORE all three parties sign the finance agreement – as set out by Section 57 of the Consumer Credit Act 1974 (Withdrawal from a Prospective Agreement). This does NOT form an obligation to fund the purchase of the car by some other means.

 

6. Where the consumer cancels the credit agreement within 14 days of all parties signing the credit agreement, then there IS an obligation to buy the car by some alternative means BUT we will argue that this obligation is between the consumer and the finance company (not the dealer) as the finance company have bought the car from the dealer, has good title in it and the dealer is not in breach of contract. Again, though, some finance companies may, in their terms and conditions have a clause that states that the dealer has to indemnify them in the event that this happens!

 

So, anyone who tells you that the law of refunds of deposits is straight-forward, invite them to read the above!

 

My advice has always been to pay as little deposit as possible if you need to pay a deposit to secure a car. If possible pay with a credit card as this gives you greater rights. Even the suggestion of 10 – 15% is not reasonable in my opinion.

 

You can also get your deposit back if it was paid towards the finance of the car as shown above. So if you are paying a deposit and intend the money to be used to pay towards the HP or PCP agreement you should make sure that you make that clear to the dealer and have it written on the receipt. But beware that when the contract has been executed (all parties have signed it) you cannot cancel the contract without the risk of being in breach. Don’t sign the contract till the last minute.

 

If you have a large deposit to pay towards the finance keep it till the last minute. We only provide contract hire and personal contract hire and we take no money whatsoever until you have received your car. The safest way. The initial rental is taken by direct debit after the car has been delivered and signed for.  By Graham Hill

 

There has been an increase of late in extensions and customers taking out 4 year PCP, PCH and contract hire agreements. This is done mainly to save money on the monthly rental but after allowing for the various costs that come into play after 3 years you may find that it’s a false saving.

 

When I looked to extend the lease on my Mercedes E Class I checked with my local dealer and was quoted nearly £900 for a 1 year extension to the Mercedes warranty. Had I leased my car over 4 years the lease cost would have been just £18 + VAT less per month when compared to the 3 year rate.

 

Then there are other subscriptions such as the Sat Nav which generally come with free updates for 3 years but you have to pay the subscription thereafter. Roadside assistance is also generally included for a minimum of 3 years with all new cars so there’s another extra to pay for. It all adds up.

 

On top of that, there is service and maintenance and possibly another pair of tyres. Obviously, as the car gets older it requires more wear and tear parts to ne replaced, brake discs, suspension dampers, filters etc.

 

So this raises the question as to whether it’s worth taking a car over 4 years given the fact that you will need to take out an extended warranty that could represent around half of the down payment on the next car, which of course comes with a new car warranty.

 

There are of course cars that come with 5 and even 7 year warranties but on closer inspection, you will find that a large number of components drop off cover after 3 years as a result of normal wear and tear. So things are not always as they seem. You could, of course, Google the market for a lower-priced warranty than the manufacturer’s own. However, whilst they love to take your money there are some that hate paying it back out.

 

Beware of betterment! As cars get older the warranty companies will try it on. Let’s say in the 4^th year you have a problem with the gearbox. The manufacturer or the warranty company agrees to replace it under the warranty but as the car is, say three and a half years old they have a betterment clause in their warranty that says, if the replacement part puts the car in a better condition than it was before the part went faulty that you should contribute to the replacement.

 

So the replacement gearbox could cost you 2 or even £3,000 towards the cost of the replacement gearbox. It’s a scandal. So if you are going to take out a 4-year contract or extend a 3 year contract, check the true cost of that last year and if you extend the warranty check the betterment clause. Also check out Warranty Direct. They may be a little more expensive than some other 3^rd party warranties but the have some of the best terms and conditions and no betterment charges. By Graham Hill

The ban on the sale of new petrol and diesel cars and vans will be brought forward to 2035 and will now include hybrids.

 

The Government had previously announced they would end the sale of new fossil fuel vehicles from 2040 but would still allow the sale of hybrid vehicles that had a zero-emission capability.

 

However, speaking at the Conservative party conference last October, transport secretary Grant Shapps hinted at bringing the date forward.

 

Launching the next UN climate conference COP26 today (Tuesday February 4), the Prime Minister Boris Johnson will confirm the much tougher, stricter timetable.

 

Shapps said: “This Government’s £1.5 billion strategy to make owning an electric vehicle as easy as possible is working – last year alone, a fully electric car was sold every 15 minutes.

 

“We want to go further than ever before. That’s why we are bringing forward our already ambitious target to end the sale of new petrol and diesel cars to tackle climate change and reduce emissions.”

 

The Government says it will continue to work with all sectors of industry to accelerate the rollout of zero emission vehicles.

 

But, the Society of Motor Manufacturers and Traders (SMMT), which represents car and van makers in the UK, says the Government has set the new target without a plan showing how it intends to get there.

 

Mike Hawes, SMMT chief executive, said: “Manufacturers are fully invested in a zero emissions future, with some 60 plug-in models now on the market and 34 more coming in 2020. However, with current demand for this still expensive technology still just a fraction of sales, it’s clear that accelerating an already very challenging ambition will take more than industry investment.

 

“This is about market transformation, yet we still don’t have clarity on the future of the plug-in car grant – the most significant driver of EV uptake – which ends in just 60 days’ time, while the UK’s charging network is still woefully inadequate.

 

“If the UK is to lead the global zero emissions agenda, we need a competitive marketplace and a competitive business environment to encourage manufacturers to sell and build here.

 

“A date without a plan will merely destroy value today. So we therefore need to hear how government plans to fulfil its ambitions in a sustainable way, one that safeguards industry and jobs, allows people from all income groups and regions to adapt and benefit, and, crucially, does not undermine sales of today’s low emission technologies, including popular hybrids, all of which are essential to deliver air quality and climate change goals now.”

 

Helen Clarkson, CEO of the international non-profit The Climate Group, welcomed the “more ambitious” target from the Government.

 

However, she said: “We believe that this could still be sooner – and that to be a global leader, especially post-Brexit, a 2030 phase-out commitment is required; without this, we risk being out of step with our international peers.

 

“Our business campaign for the 100% adoption of electric vehicles by 2030, EV100, has 62 corporate members, many of which are British, including AstraZeneca, BT, Centrica, Foxtons, Mitie, RBS, SSE and Unilever. Businesses are showing what is possible and The Climate Group would love to see this level of ambition matched.”

 

Through EV100, the UK has the second highest number of corporate fleet vehicles committed to switching to electric, after Germany.

 

Government policy must be strong and consistent to accelerate this transition, and to help the UK become a world leader on electric vehicles, it says.

 

So far, eight countries have already committed to more ambitious phase-out dates than the UK, while Scotland has had a 2032 phase-out date for new petrol and diesel vehicles in place since 2017.

 

The RAC was not surprised by the Government’s plan to bring forward the date to ban the sale of petrol and diesel vehicles.

 

RAC head of policy Nicholas Lyes said: “A more ambitious target should be the catalyst for faster change, but there are clearly many hurdles to cross.

 

“Manufacturers face a great challenge in switching their production from conventional powertrains to cleaner electric technology.

 

“More electric vehicles (EVs) will also require a great deal of investment in charging infrastructure – particularly for those who rely on on-street parking outside their homes.”

 

Lyes also believes that we should not overlook the role plug-in hybrid vehicles could play in bridging the gap to going completely electric.

 

“In the meantime we urge the Government to extend the plug-in car grant for at least another three years to help those that want to go electric, but who are put off by the high initial costs,” he said.

 

“At a local level, authorities should also incentivise their use with cheaper parking rates and lower residents’ parking permit fees.” By Graham Hill thanks to Fleet News

Drivers should book an eyesight test in 2020, says GEM Motoring Assist.

 

This, according to the road safety organisation, would help in reducing collisions and injuries on the UK’s roads.

 

GEM road safety officer Neil Worth, said: “What better time than the year 2020 to get your vision checked properly and ensure the risks you face as a driver or rider are as low as possible?

 

“You should only drive when you’re sure you can see properly.

 

“After all, poor eyesight is linked to more than 3,000 fatal and serious injury collisions every year.

 

“We continue to be concerned that there are too many people driving whose eyesight has deteriorated to a dangerous level.

 

“This puts their own safety at risk, as well as the safety of others sharing the same road space.”

 

The eyesight test was introduced to the driving test in 1937 and has only been changed in minor ways over the years to reflect changing number plate sizes.

 

It is the only eyesight test drivers are required to take until they reach the age of 70.

 

Opticians should examine a driver’s field of view, as is done in America, to check whether motorists can see and react to what’s happening around them, according to GEM.

 

Worth added: “So this year we are encouraging drivers to ensure their eyesight goes beyond 20/20.

 

“After all, 20/20 is only an expression of normal visual acuity, but the requirements for safe driving go beyond clarity of central vision.

 

“A detailed professional eye examination will mean any problems can be identified and – in the vast majority of cases – corrected, meaning the risks are reduced considerably.

 

“So many people are staying behind the wheel into their eighties and beyond.

 

“This, coupled with the greater volume of traffic and an increase in distractions, both inside and outside the vehicle, points to the clear need for more regular and detailed eyesight testing.”

 

“Asking someone to read a number plate at 20.5 metres (67 feet) cannot on its own be a measure of their fitness to continue driving.

 

“A proper eye test will also measure peripheral awareness, eye coordination, depth perception, ability to focus and colour vision.”

 

GEM has called for drivers to have an eye test every two years, ensuring there are no safety concerns about their vision and to deal with any issues at an early stage.

 

The organisation is also calling for every new driver to produce evidence of a recent eye test when first applying for a licence, and to obtain a mandatory vision test every 10 years in line with licence renewal. By Graham Hill thanks to Fleet News

More than 72,000 electric and plug-in hybrid cars were registered in 2019, marking the eighth consecutive year of growth.

 

Pure electric models accounted for 37,850 registrations, overtaking plug-in hybrids for the first time in the annual sales figures. But still make up less than 2% of the total registrations in 2019.

 

Combined, alternatively fuelled vehicle (AFV) registrations achieved a record 7.4% market share. However, it was hybrid electric vehicles (HEVs) that were the most popular, with registrations of 97,850 units.

 

Poppy Welch, head of Go Ultra Low, said: “In the context of the wider new car market, it is encouraging to see plug-in car registrations continue to go from strength-to-strength. Looking at the year ahead, 2020 is set to be another fantastic year for electric car uptake.

 

“With even more new models being released, ongoing government support, as well as the continued expansion of the public charging infrastructure, we’re confident that the next 12 months will be a landmark year for the nation’s switch to electric.”

 

2020 has the potential to be another strong year for registrations as a host of models are set to be introduced, including the Peugeot e-208, Volkswagen ID3, Vauxhall Corsa-e, Skoda Citigo-e, and Mini Electric just some of the new cars due to hit the roads.

 

It is also the year that Benefit-in-kind tax is due to drop to 0% for company car drivers choosing a zero-emission vehicle, increasing demand for EVs among fleet customers substantially.

 

Grant Shapps, Transport Secretary, said: “I want 2020 to be the year electric cars go mainstream. That’s why we are doubling-down our efforts to make owning an electric vehicle the new normal.”

 

Towns and cities with the highest electric car registrations

 

Exeter has been revealed as the UK’s greenest motoring hotspot, with the fastest growth in ultra-low emission vehicle (ULEV) ownership since 2018, up more than 150%, according to registration data analysed by Motorway.co.uk.

 

According to the data, seven of the top ten local authorities for ULEV registrations since 2018 are London boroughs, with Newham and Waltham Forest seeing annual growth of 114% and 82% respectively.

 

At the bottom of the green motoring table are Sunderland and Wychavon, a district in Worcestershire, where ULEV numbers have grown less than 7% over the past 12 months.

 

“These figures show a huge disparity between areas that are embracing greener motoring and areas where take-up of ULEVs is in the slow lane. They highlight the need to focus not just at a national level, but also to confront issues at a regional level in areas where ULEV take-up is lagging behind.

 

“The government is now under tremendous pressure to encourage motorists to move to electric cars and other forms of ultra-low emissions vehicles in time for the 2040 switchover,” said Alex Buttle, director of Motorway.co.uk.

 

Top 10 local authorities that have seen the fastest growth in ULEV registrations:

 

Local Authority	Number of ULEVs registered (Q3-2018)	Number of ULEVs registered (Q3-2019)	% Increase in ULEVs
Exeter	464	1,194	157.3%
Warwick	414	943	127.8%
Newham	307	657	114.0%
Waltham Forest	330	602	82.4%
Redbridge	525	948	80.6%
Islington	570	1,026	80.0%
Tower Hamlets	559	1,003	79.4%
South Northamptonshire	320	571	78.4%
Barking & Dagenham	255	449	76.1%
Enfield	549	958	74.5%

 

 

By Graham Hill with thanks to Fleet News

Thanks to manufacturers registering cars like crazy at the end of 2019, now could be the perfect time to buy a new car

 

 

Happy New Year – and it has the potential to be a very happy one indeed if you’re one of those people wandering into car showrooms over the next month. The fact is, there may never be a better time to buy a new car than right now, thanks to manufacturers having to register vehicles like crazy in the last few weeks of 2019 – in the hope of selling cleaner ones over the next 12 months and avoiding huge penalties for excess CO2 emissions.

 

 

It’s already clear that the market from which we choose which cars to buy, own and drive is going to be radically different at the end of 2020 from how it is now. More than the proliferation of electrified and pure-electric models and, perversely, the continued gains by the SUV, we’re going to see reduced model ranges, with limited supply on less efficient variants as manufacturers actively force the issue on CO2. They can’t afford not to.

 

 

It’s reassuring, then, to read in our scoop this week that Skoda plans to offer its upcoming Octavia vRS with a choice of petrol, plug-in hybrid and even diesel. We remain convinced that different powertrains and fuel sources make sense to different buyers.

 

 

But it seems likely that this diverse approach isn’t going to be uniform. Indeed, there have been suggestions that we’re heading into a period where car retailers may be actively trying, at a level never experienced before, to push customers away from the cars they want to buy and towards the models the company desperately needs to sell.

 

 

Our advice, as always, is to do your so you know which model, engine and trim best suit your lifestyle and budget. Write it down. Keep it at the front of your mind. And stick to your guns. Then you stand every chance of getting the car you want, at a better price than you might expect. By Grahan Hill thanks to Auto Express

Only one in 10 new car sales could be diesel in as little as five years, says a leading academic.

 

Currently, one-in-four of new cars sold is powered by the fuel, a dramatic decline from the parity with petrol it enjoyed just a few years ago.

 

Its popularity is also on the wane in the company car market, where it has traditionally dominated thanks to its tax-friendly CO2 performance.

 

New figures show that the proportion of diesel cars on the FN50 fleet – the UK’s top 50 leasing companies by risk fleet size – fell from almost two-thirds (63.4%) to close to half (50.5%) over the past 12 months.

 

In terms of vehicles they had ordered in the past year, the flight from diesel was still more pronounced. Almost half of the cars ordered in 2019 were petrol (47.6%), while only two-fifths (38.8%) were diesel.

 

David Bailey, Professor of Business Economics at the Birmingham Business School, said: “There seems to be no end to the decline in diesels.”

 

Overall, diesel new car sales are down by more than a fifth in the past year. Some 515,000 units have been sold year-to-date, compared with 650,000 during the previous 12 months, data from the UK automotive trade body, the Society of Motor Manufacturers and Traders (SMMT), shows.

 

Forecasters say that, with the sharp falls seen in the sale of new diesel cars since 2017, it could lead to an undersupply of used vehicles in 2020 and 2021, which would help sustain residual values. However, it’s unclear whether the decline in new diesel car sales will be mirrored in the used car market. The most recent figures from the SMMT show that demand for used diesels grew by 1.4% in the third quarter, with some 858,442 changing hands.

 

“A big shift away from diesel is still taking place,” said Bailey. “In late 2015, diesel accounted for more than 50% of the market, by March last year it was down to 32% and it has fallen further since then.”

 

The UK is not alone in turning its back on the fuel; its decline is being seen across Europe. In the key market of Germany, diesel’s share has fallen below 30% from having accounted for half the market and to a similar level in France, where three-quarters of new car sales were once diesel.

 

Bailey said: “We are seeing this continuing decline and, while I originally thought the market share for diesel by 2025 would be down to 15%, I now think that’s quite optimistic – it may be as low as 10%.”

 

Despite its popularity in Europe, diesel has not enjoyed similar market penetration in other countries. “It’s negligible in North America, it’s only 4% at best in China and virtually insignificant elsewhere,” he said.

 

“If you go back to the turn of the century, diesel as a share of the market in Europe was only 10-15%. We then gave (the fuel) loads of tax breaks, because we thought it was good for the environment.”

 

Dieselgate followed however, and concerns over the fuel’s impact on air quality has put its market share on a downward trajectory.

 

Bailey told delegates at a recent Vehicle Remarketing Association (VRA) seminar the trouble is “people are completely freaked out over diesels”.

 

He said: “They are concerned about falling resale values, they are worried about tighter regulations in cities, higher taxes and its impact on the environment.”

 

He says Government policy has not helped either, labelling it a “complete shambles”.

 

“One part of Government has been saying ‘clean diesels are good’, while another part whacks a load of tax on them.”

 

Government has, however, introduced tax breaks for diesel company cars, which meet strict emissions limits defined by the RDE2 standard.

 

Company car drivers are exempt from the 4% benefit-in-kind (BIK) diesel surcharge, while fleets benefit from not having to pay the higher first-year rate of VED on new diesel cars.

 

The NOx limit for the RDE2 standard, which is measured on the road, is up to 1.43 times the Euro 6 lab limit of 80mg/km for diesel and 60mg/km for petrol. Cars achieving this limit are labelled Euro 6d.

 

Cars achieving RDE1, which allows for a margin of error two times the actual limit, are classified as Euro 6d-temp.

 

RDE2 will apply to all new registrations from January 1, 2021, before the margin for error – the conformity factor – is removed by 2023.

 

Peter Golding, managing director at FleetCheck, believes that 2020 could turn out to be a make or break year for diesel, with the success of Euro 6d cars key. However, he acknowledges the outlook is not promising when Bristol’s proposed diesel city centre car ban will not apply to older petrol vehicles, with potentially worse emissions than the latest RDE2 diesels.

 

“RDE2, effectively, puts diesel on a roughly equal footing with petrol from an emissions point of view,” he said. “The question is whether everyone from legislators to the general public are willing or able to make that distinction.”  By Graham Hill Thanks To Fleet News.