15 May 18

VRA exposes truth about Hybrids

Plug-in cable unused in many de-fleeted hybrids bought for business use

Calls for a change in vehicle tax law

Too many de-fleeted hybrids are coming through remarketing companies with the plug-in cable having never been used.

This suggests business people are buying them purely for tax reasons rather than environmental concerns, which could be hurting the tax payer and doing the einvironment more harm than good.

As hybrid cars have lower tailpipe CO2, due to their improved fuel economy, company car tax is generally lower than it would be for a non-hybrid equivalent. With CO2 levels reduced by around 20%-25%, hybrid cars are placed many tax bands lower than non-hybrids.

Plug-in Cable never used

In the UK, the equivalent to a petrol hybrid car with CO2 emissions of 100 g/km (13% BIK rate) would be in the 18% BIK rate band – cost wise this would translate to a saving of at least £1,000 per year for a model worth £20,000.

Rupert Pontin, director of valuations at Cazana and VRA (Vehicle Remarketing Association) board member explains: “Time and again, we see used hybrids come through remarketing with the plug-in cable unused.

The result is you have a car that is essentially running on a petrol engine, covering high mileage, which it wasn’t designed for and running inefficiently, perhaps at only 35mpg.

If that business person had chosen a vehicle with a propulsion type more suitable to their job - and not just for the tax incentive - they could have been achieving 45-55 mpg.”

This is yet more evidence to back the need for usage-based vehicle tax rather than the flat rate.

Authored by: Alison Pittaway