Hoofddorp, 17 June 2015 – As was the case in previous years, changes to lease tax regulations have resulted in a run on lease cars that fall into discount lease tax categories. Leasing company ALD Automotive has noticed that delivery times for popular models have risen dramatically, to an average of three or four months, more than six months before the new regulations go into effect. In order to be certain that lease drivers will be able to take advantage of the lower rates for 2015, many orders have already been placed for delivery during the last two months of the year.
Starting on 1 January 2016, the number of additional tax categories will change from five to four and the additional lease tax liability rates and CO2 limits will also change. The additional lease tax categories of 7%, 14% and 20% will cease to exist in 2016. In their place there will be two new rates: 15% and 21%. The CO2 limits for the ‘reduced additional tax’ will also be adjusted. Vehicles that are currently extra popular due to their low fuel consumption and their low tax rates may fall into a more expensive category after 1 January 2016.
More than half a year before the new regulations go into effect, ALD Automotive has noticed that drivers are ‘hoarding’ these vehicles: 15% of the current portfolio are scheduled for delivery in November or December 2015, and 98% of these vehicles are models eligible for 7% or 14% lease tax. Models such as the Renault Clio are only available from dealer stock, and the Volvo XC90 PHEV and Mercedes Benz C350 PHEV are so popular that the manufacturers cannot guarantee delivery in 2015.
The leasing company is not surprised by the run on efficient models. “In some cases, the differences in additional tax rates can be as much s 170 Euros per month. That’s a lot of money”, according to Frank Alofs, ALD Automotive Operational Director. “We recommend that lease drivers who want to take advantage of favourable conditions for efficient models should order a car before August.”
NOTE TO THE EDITOR:
ALD Automotive
ALD Automotive specialises in Operational Leasing and Fleet Management. With 1,107,375 vehicles and 4,800 employees in 39 countries, ALD Automotive is one of the world’s three largest car lease companies. ALD Automotive is a subsidiary of French banking group Société Générale.