ALD see fleets focus on low emission vehicles in record numbers
ALD Automotive, the leading contract hire and leasing company and operator of in excess of 52,000 vehicles, has reported that with business’ focusing on cost of ownership coupled together with an ever widening choice of low emissions cars means fleets are taking delivery of environmentally-friendly models in record numbers, with the average CO2 emissions of new company cars delivered in the first six months of 2010 dropping to an all time low of 143.9 g/km.
ALD’s data also revealed that the average CO2 emission of company cars added to the organisation’s fleet is lower than the national and last year average CO2 emissions for all new cars taking to the UK’s road fell to 149.5g/km.
Meanwhile, company cars added to the ALD fleet are also clocking up less mileage, according to the analysis (see below).
The ALD data also highlights that the average contract hire agreement signed in the first six months of this year was for 37.4 months and just over 54,000 miles.
Undoubtedly, says ALD, the continuing trend towards low emission company cars has been significantly influenced by a corporate desire to reduce running costs as well as the Government’s decision to link all motoring taxes, benefit-in-kind tax, Vehicle Excise Duty and capital allowances to vehicle CO2 levels.
With further tax rises scheduled benefit-in-kind tax thresholds are due to increase on April 6 next year, vehicle capital allowances will reduce from April 1 next year and fuel duty is due to rise on October 1 this year and again three months later – ALD expects average new company car emissions to drop below 140 g/km in the near future.
With fleet decision-makers and drivers able to choose company cars from an ever-widening array of models that are classed as ‘low emission’ and improved travel planning and mileage management by both businesses and company car drivers, this has contributed to the steady decline in journey distances in recent years.
ALD uses a unique total cost of ownership fleet software programme that analyses in fine detail every single factor – both corporate and personal – impacting on vehicle funding and car choice to help businesses make the optimum vehicle selection.
ALD Automotive marketing director David Yates said: “The software enables ALD to identify the base fleet cost for companies and then identify vehicles that meet that criteria. As a result we can deliver substantial funding and operating cost savings to employers and benefit-in-kind tax savings to drivers.
“The economic downturn increased the spotlight on the cost of motoring from both a fleet management and driver perspective. Coupled with the Government using motoring taxes to influence the take-up of low emission company cars, our total cost of ownership approach is significantly influencing vehicle choice.”
Finally, despite more hybrid models becoming available and mainstream manufacturers due to launch zero emission electric models early in 2011, Mr Yates believes that low emission fuel-sipping petrol and diesel company cars will continue to dominate fleet choice lists for the foreseeable future.
He said: “Hybrid and electric vehicles will be a niche choice for most fleets. While there is interest in these vehicles, petrol and diesel vehicles are a known quantity and deliver, in many cases, exactly what fleets and drivers want – low emissions, excellent fuel economy and a desirable total cost of ownership.”
Average new vehicle CO2 emissions and contracted mileage Year CO2 (g/km) Mileage
2010 143.9 17,301(Jan-June)
2009 145.5 18,204
2008 150.5 19,049
2007 155.8 17,198
2006 154.7 19,658
2005 161.4 22,108
2004 167.9 21,592
2003 166.8 22,475
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