Dash for cash

Autocar - - YOUR VIEWS -

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

Stinger: what if that badge said BMW?

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