Electric vehicles now cost competitive: LeasePlan’s new Car Cost Index

LeasePlan has just released its annual Car Cost Index.

With the latest analysis showing that electric vehicles (EVs) are now cost competitive in several European countries. But this isn’t the case everywhere. Our Car Cost Index reveals that policymakers need to take action on key issues

April 5, 2018
 

Specifically, the WLTP test is aligned with today's more dynamic driving style, which includes more frequent acceleration and deceleration as well as tire rolling resistance.

If the WLTP results in a higher CO2 emission level for a vehicle, the tax rate for that vehicle would become more expensive despite the vehicle performance remaining unchanged. Additionally, in order to maintain high levels of transparency for as long as both NEDC and WLTP values exist, it will be worthwhile converting WLTP values into NEDC (e.g. by using the EU’s CO2mpas tool).

Our new white paper below unveils what's next in terms of the CO2 emissions test procedure, and highlights how new legislation will impact fleet management in areas such as car policy, CO2 reporting and the taxation of vehicles.

What are the changes in Luxembourg?

In Luxembourg, road tax and fringe benefit tax is linked to CO2 emission levels. Local gouvernement is therefore supposed to adapt local legislation.

FEBIAC and its partners from House of Automobile (ADAL, FEGARLUX, MOBIZ) developed an information website about WLTP: http://toutsurlewltp.lu. It explains among other things the tax consequences, which depends indeed on local governments: "The NEDC test cycle results must stay the basis of fiscal calculations. It is logica and equal. The WLTP introduction cannot lead to a sudden increase of the taxation.