Dash for cash
Most medium to large EU6 diesels already on the road are owned or leased by businesses. Normally, once these cars have reached very high mileage and are nearing the end of
their life, they are disposed of to the second-hand market.
The government will have to think very carefully about how it proceeds with diesel. To introduce thoroughly punitive legislation will cause businesses to dispose of their diesel vehicles prematurely. Those owned or purchased through a PCP will incur a large loss, but this loss will be offset against tax.
Let us, for the sake of argument, assume a £10k loss on each vehicle. This will equate to a loss of tax to the government of £3000 to £4000 per vehicle. Those vehicles will then enter the ‘food chain’ with only half their normal mileage on them and be mopped up by the buying public eager for a bargain. The huge discounts will offset any measures introduced by the government to dissuade them, meaning that the treasury will actually have subsidised the private motorist to buy a EU6 diesel to the tune of £3000 to £4000 per vehicle and ensured that those diesel vehicles remain on the road much longer than they would have done under normal circumstances. Tim Gustard Penrith, Cumbria
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