ARTICLE: WLTP and your company car fleet

Safety & legislation 31 Mar 2020

We’re with you on this journey and working hard to keep things simple for you and your drivers with a short Q&A below.

What’s happening with manufacturer data?

Car manufacturers are currently confirming CO2 emissions and MPG data following the introduction of Worldwide Harmonised Light Vehicle Test Procedures (WLTP).

As a result, all company car-quoting systems will need to change. The availability of manufacturer data is a moving feast because we’re in a period where data is still being finalised and shared with data providers.

Key dates

The system needs to change because new WLTP data is the basis for:

  • Vehicle excise duty (VED) from 1 April 2020 – which has implications for monthly rental values
  • CO2 & MPG data from 6 April 2020 – which relates to personal costs and any company car policy limits you have in place

 What will happen with vehicles on order?

Due to lead times, we are switching our systems across to manage the new WLTP data as soon as it is available from the manufacturer. Depending on the manufacturer, you may start to see “indicative” appearing on some of our quotes until full WLTP data is provided. We’ll be contacting all customers and/or drivers who have ordered vehicles and have a delivery date close to or after the change to WLTP to talk things through. If you tell us you want to order a car against a previous quote, we’ll requote for you and your driver before you place the order.

 What do you need to consider and do?

Vehicle listings in rate books and quotes may potentially have different CO2, MPG and rental values as they transfer to WLTP from New European Driving Cycle (NEDC) data. From the confirmed data we have, on average where CO2 emissions increase it is likely that they will do so by around 20-25g/km. If you have CO2 limits in place, you may want to review them and understand any impact to your car list. Once the system has changed over some vehicles may not appear in your drivers’ grades.

Bear in mind:

Pure electric vehicles have 0% Benefit In Kind (BIK) tax for 2020/2021

It’s a perfect time to ensure that pure electric cars are on your choice lists.

Some low emissions vehicles are in a positive position following the changes

A percentage of Ultra Low Emissions Vehicles (ULEVs) have had their CO2 value decreased and electric vehicles have stayed at zero.

These are the same cars

This increase in CO2 does not mean you are putting more polluting vehicles on the road, it is just the test that has changed.

Consider your CO2 cap and other policies’ impact on your vehicle grades

If you have a CO2 cap, we expect the biggest change to your fleet could be because of vehicles moving out of grades. Road tax could also result in a change, as will MPG if you operate on a Whole Life Cost model.  

If you need to speak with us please contact your Arval business manager.

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