The British Vehicle Rental and Leasing Association (BVRLA), suggest that policy makers can support a successful and speedy economic turnaround if key issues are addressed and appropriately supported.
The Covid-19 Recovery Plan, written by the industry body, highlights 5 priorities:
· Support new and renewing leasing contracts by providing a tax and incentive offer
· Focus on key factors in rapidly reducing carbon emissions and recognise that access to affordable finance is critical in supporting the fleet industry to renew and decarbonise.
· Support the offer of flexible car models, thereby increasing consumer choice around sustainable transport
· Pro-actively support the introduction of clean air zones
· Maintain the financial liquidity on which the motor finance market relies
In addition, the BVRLA calls for the 0% Benefit-in-kind (BIK) tax rate for zero-emission vehicles to be continued into next year alongside a scrappage scheme encouraging vehicle owners to change older vehicles for battery electric (new or used), plug-in hybrid or Euro 6 petrol/diesel versions.
BVRLA went on to suggest that first year Vehicle Excise Duty (VED), commonly known as road tax, on cars and vans should be ceased until April 2021 and offer 100%first year allowances for leased and rented vehicles. They go further to recommend that rented electric vehicles, rental cars and those in car clubs should be exempt from VAT.
"BVRLA members have a unique perspective on the issues facing road transport in the UK and have the purchasing power to tackle them…they have a long track record of working constructively with policymakers to drive down emissions, improve safety and make road transport more cost efficient and accessible." Gerry Keaney Chief executive - BVRLA
Manufacturers are constantly introducing new technology to increase driving range while decreasing emissions. Recent figures (July 2020) from the Society of Motor Manufacturers and Trader (SMMT) show that there are 136,600 pure- electric vehicles on UK roads and 330,800 hybrid models – 9% of new car registrations. It is a very positive time for the electric car market. Please contact us if you are thinking of making the switch to an Electric of Hybrid vehicle – we can do our bit to support you to do yours!
(Some content was shared from Business Car Magazine, our thanks to them for their valuable research for the Leasing Industry.)