The Government have announced further plans to widen the ULEZ zone. The ULEZ (Ultra Low Emission Zone) is a specific area in the centre of London which is encouraging only low emission vehicles to travel in the area, any vehicles travelling in this area which are non-compliant must pay daily charges from £12.50.
If we put that into perspective, if a commercial vehicle is travelling into this area on a daily basis then the cost is £62.50 per week, £271 per month and £3,250 per year. Clearly you then have vehicle running costs and relevant congestion charges on top.
By widening the ULEZ area the Government are hoping to further produce cleaner air and reduce pollution. They are also hoping to encourage less people to drive through the areas and use the available public transport.
Of course, using public transport for visitors and residents is an ideal solution but for businesses having to make commercial trips, especially when delivering goods and products, this is not a viable option. Instead, the focus will be on ensuring all commercial vehicles are fully compliant with the low emission requirements.
When running a fleet of vehicles there could be a broad mix such as cars, refrigerated vans and luton tail lifts. The major downside is maintaining the vehicles especially when ensuring they all have low emissions. Being able to continually invest in the fleet and keeping all vehicles fully compliant is very important, this also helps to reduce maintenance costs. One key factor to help facilitate this is commercial vehicle finance and there are 3 specific options available:
Hire purchase – a set fee is agreed, monthly repayments are made and at the end of the term the vehicle is fully owned by the business.
Contract hire – the vehicle is hired over an agreed period with a monthly payment structure, at the end of the term the vehicle is returned and a new agreement is sourced.
Finance lease – an agreement is made with a leasing company; the leasing company will own the vehicle and lend it to the business for a set monthly fee over an agreed term.
Lease purchase – the business will pay a deposit for the vehicle followed by set monthly payments over an agreed term, at the end of this term the vehicle can be purchased by paying any outstanding balance or starting a new agreement for a new vehicle.
Should you have any questions or would like to discuss the best options for updating your commercial vehicles to make them ULEZ compliant please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.
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