posted 5 years ago

New Legislation Could Save Motorists Thousands

European 2020 CO2 Regulation

Motorists could save thousands over the life of their cars if the proposed European 2020 CO2 Regulation is implemented, a report has concluded. This would require motor manufactures to have fleets of vehicles that (on average) emit carbon at a rate no higher than 95g/km. Failure to comply could lead to significant fines, public ridicule, and damaged reputations. The research – which was conducted by Cambridge Econometrics and Ricardo-AEA on behalf of the European Climate Foundation – has suggested that the cost of complying with the proposed rules could increase the average new car price by between €1,000 and €1,100 in 2020. However, this should be off-set by fuel savings of about €400 per-year. Motorists could therefore break even within three years and everything beyond that would be profit. Imagine these figures multiplied over the thousands of vehicles sold throughout Europe every year. The report also emphasised that creating environmentally friendly vehicles could help the employment figures. This, of course, should then boost the world's economy which would benefit millions of people.

Today's Environmentally Friendly Cars

But this is the future (maybe). Let us consider how choosing an environmentally friendly car can save money now. One of the costs to consider when buying new is the showroom tax. This is based on carbon emissions and is effectively the cost of the first tax disc. Petrol and diesel cars – with emissions no higher than 130g/km – can therefore be taxed for free. These include the Ford Focus Edge 1.0T 100PS EcoBoost and the Citroen C5 Tourer VTR 1.6 HDi 16v. However, the cost rises to £1,030 for vehicles with emissions over 255g/km. These include the Jaguar XKR-S Convertible and the Range Rover 5.0 V8 Supercharged Autobiography Sport. And that is only year one. The highest polluters cost £475 to tax from year two (at current rates) in contrast to £0 for those with emissions of 100g/km or less. Then there is fuel to consider. The Volkswagen Polo Match 1.4 averages 47.9mpg but the BlueMotion 1.2 TDI trim manages 80.7mpg (+32.8mpg). Imagine that over the life of the car. Plus the environmentally friendly trim can be taxed for free whereas its sibling costs £120 per-year. So, even though the BlueMotion costs £15,985 rather than £13,085 it could be cheaper long term for high mileage motorists. Plus there is the satisfaction of owning a car that has a minimal negative impact on the environment.

Only one way to make Road Tax/Emission taxation fair is to include it with the price of fuel so those who use the most fuel/cover the most miles pay the most tax. Currently those who have large-engined vehicles but cover very little mileage are unfairly penalised - very often older cars are all someone can afford... Personally I would like to see the estimated whole life CO2 emissions used as a basis of taxation including manufacture and the eventual recycling of the vehicle - that is: proper recycling and not the current methods employed by the scrappies that pays only lip-service to the principle.

as before

This whole thing about low CO2 levels is very misleading. In 2002 the car industry were 7% optimistic on average. They are now 23% out. Cars when driven normally in traffic jams etc., are not significantly more efficient than they were a decade ago. Just hang onto your old car and save much more money.

Don't be fooled with this article. The Rouges have already said that they will tax us per mile and much more per motorway mile or "A" road mile up in the north of Scotland where there are no motorways. Did they not realise that dangling the carrot of low "Road Fund Licence" (JOKE) AKA VED. would not persuade millions of broke motorists to buy low consumption/ low CO2 cars would not reduce their tax take? They have to find alternate methods of robbing us

Very well put. Looks like some smart people shared their ideas. I wonder if the government thinks people don't known what they're onto or they just choose to ignore your options.

It's another lie we were all told to buy energy saving light bulbs improve insulation buy more efficient boilers and what happened the energy prices have been increased, CO2 climate change is just a way of taxing everyone more we are being lied to again

The present n'free'road tax cars won't be free much longer....the spendthrifts need money for aid to overseas corrupt regimes. Energy to make new car said to be more than generated in it's lifetime, so better to keep cars for longer except black boxes will become irrepairable: calle planned obsolescence

I doubt this tax change will have any significant effect on Ferrari etc. if you can afford to buy the car then £450 a year for road tax should not be a problem.

The whole logic behind CO2 car tax is wrong and is certainly not a progressive tax. Someone doing 30,000 miles in a sub 100 g/km car is more of a polluter than a person who does 3,000 in 255g/km car - yet the higher polluter pays less road tax. Not to mention electric cars are still responsible for a CO2 foot print in generating the electricity to charge their batteries - not to mention the environmental and CO2 cost of their batteries. Taxing on CO2 is about as stupid a policy as it can get, and is not a sustainable one for tax revenues anyway!

A 95 g/km average will kill companies like ferrarri unless they rebrand themselves as "fiat". Co2 is rubbish anyway and benefits no-one. It's a lot more friendly to the environment to drive a 30 year old escort than to build a new car

The theory sounds good if you ignore the facts. CO2 tax is just that another additional tax. CO2 is about 5% of the air we breath. Man kinds contribution to CO2 is only around 5% all the rest is produced naturally. CO2 levels will not alter due to any motoring taxes. If the Government gets a reduced taxation from motorist they will increase other taxation to cover any short full. Don't believe them

Sorry, should be reap the rewards.

I fully agree with Dave Dibble. I drive a fuel thirsty vehicle, and accept that I pay more tax because of this, but I would be furious If I bought a £0 tax rate vehicle, only to find this rising each year due to the reducing presence of said gas guzzler. The incentive to buy Eco friendly cars must be protected to allow motorists going down this route to continue to read the rewards.

Great idea in theory. However the more drivers who go down this route the less income the government get from VED and Petrol tax. How long before the government change the rules to claw back this lost revenue? I may be a sceptic but I would not trust this government any further than I could throw them!!!