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TO FUEL OR NOT TO FUEL?

Budget 2001 brought significant changes to the fleet industry. Fuel, Vehicle Excise Duty (VED) and authorized mileage rates all came under the scrutiny of the Chancellor and the effects could have an impact on your business.

[B&B Vehicle Contracts, whose principal, has 30 years experience in providing its customers, like you with a variety of funding options including: contract hire, finance Lease, contract purchase, sale & lease back, personal contract hire with an option to purchase.]With a 2 pence per litre reduction in ultra-low sulphur petrol and a 3 pence reduction in ultra-low sulphur diesel, savings for the fuel payer could be in the region of £75 per vehicle, per annum. However the budget also continued the policy of increasing car fuel scaling charges by 20%, but with the decrease in fuel costs, the net increase for 2001/2 is around 14%. More than ever before, employers must weigh up the difference between providing drivers with the perk of free fuel and the driver paying from their own pocket, so as to establish the most financially beneficial option for the vehicle user.

Duty bound

Operators of cars under the 1549cc threshold - registered before 1 March 2001 - will enjoy the extension of the small car engine £55 Vehicle Excise Duty (VED) discount from 1 July 2001, with rebates being backdated to November 2000. All vehicles registered after 1 March will be affected by the new VED CO: emissions system announced in last year's budget.

Cash Rich?

From April 2001, drivers of their own cars with an engine capacity between 1 and 1.5 litres will see an increase in their tax-free authorised mileage rate bands. For the first 4,000 business miles, drivers can claim 40 pence (up from 35 pence) and a raise of 5 pence to 25 pence thereafter. Cars under 1 litre will see a more significant increase to be brought into line with these rates.

[We deal with some of the largest funders in the UK & Europe, providing the lowest possible interest rates, together with the flexibility of 18 - 48 month periods.]Nevertheless, with the new C02 emissions based benefit-in-kind company car taxation system coming into force in 2002, we estimate that the typical company car driver will be approximately £30 per month better of under the new regime.

At B&B Vehicle Contracts we are in an excellent position to provide you with best practice guidance on how these changes could influence the small to medium business fleet customer.

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For more information on how to choose the most cost-effective vehicles for your fleet contact
B&B Vehicle Contracts
41 Clarence Road, Chesterfield, Derbyshire S40 1LH
E-mail: bbvc@carandvancontracts.co.uk
Tel/Fax: 01246 557080  Mobile: 0802 284465

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