The green one from BMW

In addition to ever increasing fuel prices, from 1 April 2008 nine out of ten motorists have had to suffer higher Vehicle Excise Duty costs.

Also a showroom tax to be based on a car’s CO2 emissions comes into force from 2010 and road tax charges for the most polluting cars go on increasing on a regular basis up to 2010-2011.

From 6 April 2008 there's also changes in the company car tax thresholds with some people paying less and some more. The big winners are those company car drivers currently running, or changing to, a car emitting 120g/km or less of CO2. There is a new 10 per cent tax band, down from 15 per cent, for those drivers.

Given that many new car buyers acquire their cars with some form of finance agreement or by using lease and contract hire terms lasting three years, now is the time to consider what level of taxes you will be paying on your new current car in three years time.

The advice is buy or lease now with caution, because in 2010 and onwards your seemingly current affordable car might be hitting your pocket much harder in terms of running costs.

BMW awarded World Green Car of the Year

Right on cue for company car drivers and retail customers comes news that BMW’s 1 Series 118d in three and five-door hatchback form has just been awarded the title of World Green Car of the Year.

A jury of 47 motor journalists from 24 countries gave the award to the BMW 118d which features a low CO2 turbo diesel engine and BMW’s EfficientDynamics technology. The award was made to BMW at the New York International Auto Show in March.

The BMW 118d officially returns 62.8mpg in the combined cycle with CO2 emissions of 119g/km putting it into the Band B category for Vehicle Excise Duty which costs £35 a year.

From the end of October this year the BMW 118d will also be exempt from the London Congestion Charges.

Whilst several manufacturers have so-called ‘green’ model programmes, Ford has Econetic, Audi ‘e’, SEAT Ecomotive, VW Bluemotion and Mercedes will have Bluetec, BMW has done more than any other manufacturer to introduce fuel and CO2 saving technologies for the vast majority of their models, not just a few individual production cars. BMW’s EfficientDynamics is incorporated in all their models with the exception of the Z4 and ageing 7 Series.

EfficientDynamics

EfficientDynamics implements energy capture systems, brake energy regeneration, auto stop-start, electric power steering, optimum gearshift change indicators, lightweight body panels and components as well as research in to the use of alternative fuels such as Hydrogen. However BMW still aims to retain in their new vehicles the power and performance associated with their brand.

BMW say that in 2008 they expect to sell 700,000 new cars in Europe incorporating EfficientDynamics technologies and that this will save 33 million gallons of fuel, compared to their pre-EfficientDynamics cars sold in 2006.

This will lead to a reduction in CO2 of 373,000 tonnes in Europe, enough to provide electrical energy for 190,000 people for more than four years.

There are now 110,000 BMW cars on British roads incorporating EfficientDynamics technology and this saves 54,000 tonnes of CO2 a year.