Autumn Budget leaves companies in a quandry over fleet

Thursday, November 1, 2018 - 09:17
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The Autumn budget statement delivered good news for some – but left in limbo many businesses that rely on vehicles to keep staff and goods moving. With no decision made on benefit-in-kind and vehicle excise duty rates – yet the likelihood of increases following a review next Spring once the impact of WLTP changes are fully understood – many firms will be reticent to make long term commitments to new vehicles at this stage. But they still have a need to keep people and goods on the road.

Europcar Mobility Group is aiming to plug the gap with its Advantage long-term rental solution. A ‘commitment-free’ solution, that doesn’t require capital to be tied up in 3-4 year finance agreements, Advantage from Europcar provides access to brand new vehicles, chosen from a stock list so that companies have control over P11D value. At a fixed rate, from three months upwards, it is ideal for businesses that are in limbo about future vehicle requirements given the lack of clarity from government.

“Whilst this week’s Budget provided businesses with some certainty over fuel duty, it didn’t make things any clearer for businesses craving clarity over VED and BiK rates”, said Gary Smith, Managing Director, Europcar Mobility Group in the UK. “And that makes it incredibly difficult to plan ahead.

“Advantage provides a crucial stop gap – giving firms certainty of fleet supply for their short to medium term needs, without having to make a long-term commitment that might actually not make good financial sense when the new BiK rates are eventually confirmed. It’s the best of both worlds – commitment free but with a fixed rate for certainty over cost. And we provide the flexibility to change up or down in vehicle type, without any financial penalty if the organisation’s vehicle requirements alter.”

There are four mileage options, starting at 1,000 miles and going up to 2,800 per 28 days, offering business flexibility. And with delivery costs included in the rental, drivers can have the vehicle delivered to their door – at work or home – helping them get on the road faster and avoiding unnecessary delays.

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