Lauren Pamma, Programme Director at the GFI said publishing benefit-in-kind (BiK) rates for electric company cars are needed to provide “certainty”. She warned failing to reveal future costs would make drivers “a little bit nervous” about adding into any finance agreement.
Meanwhile, publishing future charges will send a “demand signal” to manufacturers which could even bring upfront costs down.
Speaking to Express.co.uk, she said: “People who are taking a salary sacrifice car or a company car are generally taking it out for three or four years.
“A big part of their decision is what it’s going to cost over those three or four years.
“If they know what it’s going to cost for the first two years and then they don’t know what it’s going to cost the final year, it does make them a little bit nervous about entering into a contract.
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She added: “If they are locked into a three or four year finance deal with financial penalties, they absolutely need to know what it’s going to cost them.”
The Government has so far only confirmed fully electric drivers will receive low BiK rates until at least 2025.
Those benefiting from a salary sacrifice scheme will pay just one percent in BiK between 2021 and 2022.
This will rise to two percent the following year and will be frozen at this rate until at least 2025.
PodPoint has warned the lower rates should see an “expected” rise in the update of electric company cars.
Octopus Electric Vehicles has previously said the changes to BiK rates was a “financial game-changer”.
This is not the first time electric car specialists have called for a clearer indication of the future of the BiK charge.
Paul Hollick, chairman of the Association of Fleet Professionals said they had been “frustrated” by a lack of detail on future rates.
He warned businesses had “long-term plans in place” and were calling for a “stable” taxation environment.
He added a lack of clarity could also backfire on owners later down the line.
He said: “What we very much want to avoid is a potential situation where the Treasury of the time suddenly realise that the company car parc is perhaps 60 percent EV at some point in the mid-late 2020s and push up benefit-in-kind substantially.
“That would be unfair on individual drivers, we believe, and also threaten the responsible, committed long-term electrification plans that many, many fleets are pursuing, including our members.”
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