Think Tank campaigns for budget reversal
The Institute for Public Research, has taken up the 100% capital allowance for lease cars argument with the government and asked that the policy is reversed.
As from the last budget, only a car with CO2 emissions below 95g/km can claim 100% of the first years allowances, subsequently the costs of leasing a vehicle have risen from 1st April 2013, but because leasing companies have not been allowed to used the same calculations, even low emissions cars are more expensive.
The Volvo V40 D2 lease deal has risen £20 per month on a three year contract hire deal. Volvo themselves, along with all the major funders have complained to the government. A fleet of just 25 cars that are efficient, ie less than 95 g/km, will cost an extra £18,000 over their lifetime compared to pre budget.
Lexus launches the new, more efficient IS 300h
The latest version has emissions of just 99g/km CO2 and has a fantastic combined fuel efficiency of 65.7 mpg. Recent articles, covered in our blog, have shown that hybrids are cheaper to service and are more durable, using fewer brake parts. Lexus have given an illustration that the new IS300h will save over £400 compared to a basket of rivals including Mercedes Benz, Audi and BMW.
Also, expected increased future values of hybrids is keeping down the leasing deal costs of all hybrids. The IS300H launches in July 2013.