With the new a-class launching earlier this year, it is tremendously useful for our team to test-drive and photograph the product, as we want to ensure that we sell vehicles with complete confidence (and knowledge). In particular, as we will explore in a later blog, it is beneficial to explore the different specification and trim levels which the car offers, in order for a customer to receive the product which is right for them.
As we have been exploring recently, many of our new customers are “ex-company car” users who have either exited the scheme due to company car tax or they have been forced out of the scheme due to company pressures.
As you may have seen, the International Accountancy Standard Board (IFRS 16) is changing the way in which a lease vehicle is accounted for.
The main change is that for contract hire, the vehicle will become an “on-balance sheet” activity. Previously, any contract hire vehicles were off-sheet and did not form part of the way vehicles were accounted for. Any accounts which are prepared from 1 January 2019 will now have to record the asset. To assist companies, Ernst and Young have produced a “Right Use of Asset” programme, so that this calculation can be carried out accurately.
For any organisation with a large fleet, this means that any banks, underwriters or prospective purchasers/investors will see these vehicles. Fundamentally this will affect gearing ratios which can be crucial for certain businesses.
In terms of the car shown here, the Mercedes-Benz A CLASS HATCHBACK A200 AMG Line Premium 5dr Auto, this was based on the following configuration:
· Cosmos Black Metallic Paint
· Artico leather/Microfibre Dinamica – Black with red stitching
· 18″ AMG 5 twin spoke light alloy wheels in titanium grey with highsheen finish
· Advanced navigation pack – A Class
As standard the car includes Bluetooth, HDD navigation, dual Bluetooth interface, rain sensing wipers, active brake assist with forward collision warning system, brake callipers, hill start assist, AMG floor mats, 180 degree rear view camera, active lane assist, active park assist, front and rear parking sensors, attention assist, cruise control, reversing camera, stop/start system, 10.25” media display, body coloured externals, Mercedes connect me, electrically adjustable and heated doors mirrors, DAB radio, AMG body styling, headlamp assist, high beam assist, diamond radiator grille, headlamp assist, LED headlights, high performance LED lights, climate control, 3-spoke flat bottomed steering wheel, artico upholstery, brushed stainless steel pedals, gearshift paddles, ambient lighting, mirror pack, seat comfort pack, 18” alloys, keyless go, sport heats, heated seats and remote central locking. In terms of additional features, consider – advanced navigation and the light aluminium longitudinal trim.
On the technical-side, company car and business users can note the P11d at £31,470.00 and CO2 at 123g/km. The 1332CC 7 speed auto engine delivers 53.3 combined MPG, 163ps and 0-62 times of 8 seconds. Service intervals are set at every 12 months and 15,500 miles (whichever lands sooner).
Another change to driving behaviours (which may influence company car/private car choice) is the congestion charge zone (CCZ) which are in place across London.
The congestion charge applies for those travelling between 7am and 6pm (Monday to Friday) and will see £11.50 having to be paid per day (so long as paid in advance). Car and vans which emit 75g/km for CO2 and which meet the Euro 5 standards do qualify for a 100% discount.
You need only pay £10 to register your vehicle for a discount. You would think that with this charge, all company cars (and private ones) would be “eco” ones such as an electric or plug-in hybrid. However, there are two issues: 1) these types are of vehicles are not suitable for all types of journey. If you are a higher-mileage driver covering 25,000 miles per annum and more, you may need a diesel vehicle; and 2) these cars are more expensive due to the technology, and residual value uncertainty. To add further complication, the grants on these vehicles will change as of 10 November 2018.
Unless you have a true electric vehicle, you are not going to receive any support from the Government. UPDATE – the grant has been removed as of 21 October 2018!
To supplement the congestion charge, new Low Emission Zones (LEZ) and Ultra Low Emission Zones (ULEZ) are going to cover the most polluting of vehicles. Operating 24 hours a day and 7 days a week, these will cover Greater London, Heathrow, the M1 and M4.
Unless you have a Euro 4 petrol vehicle or Euro 6 diesel vehicle, you are going to be paying another £12.50 per day.
While commercial vehicles are going to be much more affected that passenger cars, company cars/personal cars need to upgraded to the latest technology and engines in order to limit the charges being placed on them. For drivers local to us in Manchester and Liverpool, you need to be aware that the future of motoring is going to change.
Most cities are looking into congestion zone type approaches, which means you have to start to think about your next vehicle carefully – petrol or diesel? New or used? Electric or PHEV?
Find the best leasing deals online for the all new Mercedes A-Class here @CarLease UK – you can also read more Mercedes reviews below…