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Where do you go from here? Four options for handling WLTP

August 22, 2018

It’s almost as if WLTP stands for "Waiting Longer Than Preferred". The Government is effectively keeping the fleet car industry in limbo until taxation plans for tax year 2020/21 and beyond are revealed. While you wait, and wait, and wait, instead of your usual decisions about which vehicles you should order, you’re having to consider how on earth you can manage your fleet through these uncertain times.

To remind you how long these times are likely to last, here’s a reminder of the key WLTP dates:
  • 31 August 2018 – cars newly registered up to this date will continue to be taxed on their NEDC CO2 figure. WLTP has no impact
  • 1 September 2018 – all cars newly registered from this date will be taxed on their NEDC-correlated CO2 figure (derived from their WLTP figure)
  • Mid-November 2018 – Autumn Budget. It’s hoped this will confirm the tax treatment of vehicles from 2020/21 tax year, enabling informed decisions on fleet vehicle choice
  • 6 April 2020 – all cars newly registered from this date will be taxed on their WLTP CO2 figure

As the 1 September deadline looms, some manufacturers still lack the required data for some models, and some models are not currently available to order. Both of which make your job harder and planning for the future more difficult.

However, this doesn’t mean there’s nothing at all you can do for your fleet in general, and particularly for vehicles approaching the end of their current contract term.

Your options are:
  1. Extend your existing contract. This will give you breathing space while the future tax regulations are finalised, as well as continuing to give you access to the right vehicle for the job. Class 1A National Insurance and Benefit-in-Kind costs will be unaffected. Contact your account manager about this option so they can prepare a quote for you.
  2. Choose a long-term rental option. This will give you a greater degree of flexibility.
  3. Order the vehicle(s) you originally intended to – if they’re available – with the understanding that National Insurance and Benefit-in-Kind costs could increase for vehicles registered from 1 September 2018. If the model is currently in stock, and registered before 1 September, it will be taxed on its NEDC CO2 figure for the duration of your contract. To find out what models Volkswagen Financial Services | Fleet (VWFS | Fleet) currently has in stock, you can contact us now.
  4. If the vehicle you originally planned to order has NEDC-correlated CO2 emissions data published which places it outside your fleet policy, or which means the Benefit-in-Kind cost has increased beyond the level you are prepared to pay, you will need to choose an alternative. Contact VWFS | Fleet and we can advise you on the models available to suit your needs.
As data for more models is published, it’s becoming clear that NEDC-correlated CO2 emissions figures are consistently higher than the original NEDC figures. For fleets that operate a policy with a CO2 limit, this can mean that certain models will fall outside it.

If your fleet has this kind of policy, but the vehicles affected have been determined to be the best for the job, then you should consider revising the policy to accommodate them. Alternatively, if you contact VWFS | Fleet's knowledgeable team, they can help you to build the most cost-effective fleet to fit your existing policy.

We have also recently launched Flexi-Rent – a long-term rental solution which gives you access to a range of low-mileage Volkswagen Group vehicles up to eight months old*, and including new models. If your business needs change during the rental period, you can swap any of these vehicles – with no penalty – for other Volkswagen Group models to suit.

Of course, like all our leased vehicles, they’re supported by our award-winning 24/7 Driverline service, and a dedicated account manager. And because all vehicles are manufactured and supplied from within the Volkswagen Group, you’ll benefit from excellent rates.

Flexi-Rent is only one of the options offered by VWFS | Fleet to give you peace-of-mind through the uncertainty of WLTP. For more support with the decisions you need to make now to meet your immediate fleet needs, get in touch with one of our fleet specialists.

*LCVs are less than 18 months-old.