1378Finance and Accountancy Briefings

Finance and Accountancy Briefing

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Cars, costs and carbon - Cutting fleet costs through targeted CO2 reduction

Overview

Businesses are no longer able to count on continual improvements in vehicle fuel efficiency to keep themselves ahead of rising fuel costs. That trend has now run its course. Although cars’ fuel efficiency, as reflected by the average CO2 rating of fleet registrations, is still improving steadily, the cost of fuelling them is no longer falling.

Carbon is the key element in this equation. Fuel prices, the tax regime and vehicle mileage all determine how much fleets pay for carbon. In turn, mileage levels influence other variable costs such as depreciation, wear and tear and accident damage.

Cutting these ‘carbon costs’ does not require you to make expensive and uncertain investments in ultra-low-carbon cars. You can reduce them very effectively by controlling your fleet’s fuel and mileage bills.

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