What does WLTP (Worldwide Harmonized Light Vehicle Test Procedure) mean for you
Due to the stricter environmental requirements and adaptations to the measurement methods for the emission of CO2 and other harmful substances from cars, we will be confronted in the coming months with substantial changes in, among other things, the BPM surcharges of cars.
The introduction of the new WLTP test cycle will undoubtedly have consequences for your fleet policy and car choices. That there will be consequences is clear, however, not exactly what those consequences are. Full clarity is not available yet. With this update, we would like to inform you about all things that are clear and steps you might consider.
Consequences WLTP test cycle
From 1 September 2018 onwards, all new vehicles must be tested according the new WLTP test cycle. The WLTP test cycle replaces the currently applicable NEDC test. In summary, we can state that the new test method is more realistic and also stricter than the NEDC standard. This will result in higher fuel consumption and higher CO2 emissions measurements.
From 1 January 2019, the outcome of the WLTP test cycle will be used for the determination of the BPM. The European Commission has determined that there should be no adverse consequences for the consumer as a result of the transition to the new test method. The government will therefore have to adjust the BPM tables. How this will be implemented is not clear. Will it be budget neutral across the whole, per segment or at an individual model level?
Until January 1, 2019, there is a transitional period for those cars that have been tested via the WLTP cycle. A conversion method has been implemented for this period. This should show converted CO2 emissions close to the old NEDC method and thus have a limited impact on the BPM. However, this is not the case: the first calculations by car importers show that this conversion also means a substantial increase in CO2 emissions and therefore in BPM. For cars in the A, B and C segments we see price increases of € 1,500 up to € 5,000. In the higher segments, this is even much higher for a number of cars.
The importers are currently calculating what the consequences are per car model and version. The results and how they deal with this are now starting to be announced. Several engines and versions will no longer be available.
Consequences of fleet policy
If you use CO2 emissions as a criterion in your car scheme, this has direct consequences for the car selection. Because fewer cars will meet this criterion, the choice for your employee will certainly become more limited. Because it is not yet clear which models / versions will soon comply, no concrete advice can be given on this yet. We think you should consider discussing this with the relevant departments in your organization. This way, adjustments to your car scheme can be prepared in time.
Order new cars
Several considerations could be made with regards to ordering new cars. Is it advisable to move orders forward? Is it wise to let cars run longer? This depends, among other things, on your car fleet. If you are planning to order cars, we strongly advise you to check the actual price of this specific order. This can have substantial consequences for both the lease rate and the tax value. Of course, we can assist you in obtaining the right and relevant information.
Many car dealers / importers have already anticipated as much as possible about the upcoming changes. Of many makes and models, they have already put cars in order and in stock. This is how they can offer you relative certainty on the lease rates and the fiscal values.
As soon as more details are known, Traxall will inform you via our website or other means.
Detailed information about the WLTP can be found at https://www.wltp-info.nl. Here you will find, among other things, a clear explanation of the test method, the why, the planning and advice for a smooth transition.
If you have any further questions about this WLTP update, please contact us.