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A Guide to Green Cars

Green Cars

The Advantages of a Greener Fleet

• According to the Energy Saving Trust's report published in April 2007, a company with 100 vehicles could be saving £90,000 a year by implementing green fleet policies.
• They also report that two-thirds of companies which have already taken steps to reduce emissions have saved money as a result.
• Lower tax brackets. Cars under 100g/km CO2 are currently exempt from Road tax. For more information on the cost of vehicle tax for cars, motorcycles, light goods vehicles and trade licences, click here.
• New VAT incentives planned to be introduced on the greenest vehicles could see VAT slashed from 17.5% to just 5%. Green cars are not just cheaper to run, they should become cheaper to buy which ultimately affects the lease prices.
• Quite simply, better fuel economy, less to pay for fuel.
• A new government white paper could increase the pence-per-mile rate paid to employees driving on business in eco-friendly cars.
• Fuel duty set to rise by 2p per litre in October 1, 2007 and another 2p per litre in April 1, 2007.
• Fulfilling your Corporate Social Responsibility. Consumers are becoming more environmentally aware and the "green" pound is becoming ever stronger. Consumer's are taking an increasing interest in how ethically aware companies are and are known to make choices based almost solely on their environmental and social credentials. The same may apply to your employees.
• Lower NICs and BIK liabilities for employer and lower tax for employee. Tax on company cars is based on the list price of the car plus any accessories, the CO2 emissions of the car, and the fuel type of the car.
• In the future further incentives may be introduced for the greenest cars such as cheaper parking and reduced congestion charging.
• Increased cash flow. Spending less on your company fleet, frees up funds to use elsewhere.
• Better residual value and leasing price for low CO2 cars. It is getting more and more expensive to run a gas-guzzler, and it seems that drivers of those vehicles are going to be more and more penalised in tax. This adds value to vehicles that are efficient on fuel and likely to cost less in tax.
• Lower insurance groups.
• Some vehicles are exempt for congestion charging and get free parking. Vehicles that do not rely solely rely on petrol or diesel and meet strict emissions criteria are often free from the charge.

Tips to make a Greener Fleet

• Look at the CO2 emissions of a car. It is easy to make assumptions about which cars are greenest and in the lowest tax brackets. Some cars are marketed as green because they are an improvement the old model but are still relatively high in emissions compared to smaller cars. Other cars are unsung heroes that aren't necessarily marketed as green but due to size, are in lower CO2 emissions. The Mini Cooper D at 118 g/km CO2 is a good example. It's a generalisation but usually smaller cars are greener. See http://www.vcacarfueldata.org.uk/ for more details on CO2 emissions.
• Look at the manufacturing process. Some manufacturers are proud to boast not just the cars performance ecologically, but the conditions under which it was manufactured.
• Look at the fuel economy. Again there is confusion here, a good diesel can sometimes achieve better fuel economy on a motorway run than a hybrid. Choosing the right car can depend on the type of driving you do most. Hybrids are great for city driving.
• Consider the fuel type. Biofuels, diesel, electric, petrol, LPG, CNG (Compressed natural gas) hybrids, Bio-ethanol, it's so confusing. Which is best? It really depends on your use of the vehicles as to what suits you. The different fuels have different advantages. (For more information see our "A Guide to Alternative Fuels")
• Allow your employees to trade down. Many companies do not allow their employees to change their car for something smaller or cheaper. Many companies insist that the car has to be proportionate to their grade.
• Encourage employees not to get focused on the prestige of a car and see it as a status symbol. Explain to them the change of policy is not to deprive them but will save them money and improve corporate image.
• Offer incentives and disincentives to encourage staff to buy greener vehicles.
• Well-maintained vehicles. The usual, keep tyres inflated, remove unnecessary racks, boxes and unload the boot. Regularly service the vehicle.
• GPS, saves on the unnecessary driving round in circles looking for your destination, thus saving fuel. Also useful for tracking vehicles.
• Encourage drivers not to use the air-con. Cars without luxuries such as air-con and electric windows are greener and again save on BIK tax.
• Use online tools such as www.thegreencarwebsite.co.uk to find the greenest options when choosing a vehicle.
• Driver training to encourage drivers to keep a steady speed, avoid harsh braking and acceleration and to drive in a higher gear wherever possible.
• Grey fleet. Take an interest in the vehicles employees drive as private vehicles for business. Maybe cut back on the number of private cars used for business and look into daily rentals and pool cars. Don't see offering a cash incentive as the end of your responsibilities. Remind employees that extra AMAP (Approved Mileage Allowance Payments) are offered for car sharing. Privately owned vehicles are often older and unlike leased vehicles may not be maintained to the manufacturer's standards.

Look out for

• Aerodynamics. Manufacturers are happy to boast their attempts to reduce drag, cars are being manufactured with lower suspension, lighter bodykits and more streamline shape. You can help to by removing racks and ski boxes and ensuring your vehicle has wheel trims fitted.
• Improved exhaust systems which cut out NOx emissions.
• Stop-start technology, which automatically stops the engine when you are stationary, e.g. in a traffic jam and automatically starts it again when you want to move off.
• Regenerative braking. As seen in hybrid cars when energy in returned to the electric motor every time you brake.
• Reduced roll resistance tyres, designed to reduce drag.
• Longer gear ratios allow for lower fuel consumption but reduce acceleration power.
• New engines designed to run on low viscosity oil which improves fuel consumption rate and emissions.
• Performance or "super" fuel costs more at the pump but will squeeze a bit more MPG and reduce emissions and deposits in the engine.