Circle highlights VED impact
With all new vehicle registrations will be subject to Vehicle Excise Duty (VED) from 1 April 2017, Circle Leasing has raised concerns about the lack of publicity surrounding the change.
Circle Leasing is advising customers that the hire of all vehicles registered post 1 April 2017 could be subject to a price increase due to the VED charge.
‘Customer feedback leads us to believe that very few bodyshops are entirely clear on the effects VED tax will inevitably have on their courtesy car hire charges,’ said Aidan Minogue, managing director, Circle Leasing.
In the first year, VED tax will vary from £10 to £2,000 depending upon vehicle emissions. Only vehicles with zero emissions will be exempt from the tax. Circle believes that the majority of 2017 courtesy cars will fit into the £140-160 bracket for their first year. All revenue raised by this tax will be ring-fenced to finance the construction and repair of UK highways.
‘Circle Leasing aims to provide a range of vehicles with differing emission levels so that customers can minimise the government imposed cost of VED if they so choose,’ said Mike Casey, commercial manager, Circle Leasing
‘As of 1 April 2017 all new Circle Leasing vehicles will be subject to a VED charge which will solely cover the cost of the tax and VED will not affect any current lease agreements. We wish to reassure our customers that we will work with them to minimise any increases,’ stated Aidan.