RDE 2 Compliant Cleaner Cheaper Diesels are nearly here!
In the Autumn Budget, the Chancellor announced that there will be a new VED supplement applied to diesel cars registered after 1 April 2018 making this a total of 4% more than petrol.
The change, that will see their First-Year Rate go up by one VED band, will not be applied to cars meeting Real Driving Emissions Step 2 (RDE2) standards.
At the time of the announcement, and still today, there are no diesel vehicles on sale which meet RDE2 standards. This is just about to change, Mercedes are expected to test their B & A Class cars for compliance in January 2019. This we foresee will be the start of a whole raft of vehicles which will not attract the supplement. This will have the a huge benefit in making BIK tax much cheaper for these much cleaner diesels than petrol’s and restore the popularity of diesel.
Worldwide Harmonised Light Vehicle Test Procedure (WLTP)
We still have many, particularly VW Group (Audi, Seat, Skoda). cars yet to pass through the new WLTP emissions tests. With Audi new vehicle sales reported to be as much as 57% down across the whole of Europe being indicative of the confusion the new testing regime has caused as customers simply do not know what the emissions will be on some models. The irony of course being that it was VW vehicles fitted with defeat technology that highlighted the need for a new testing regime!
The feedback from most manufacturers is that the re-rating of their model ranges is typically at least a 10% increase on emissions. From September 2018 until April 2020, the new WLTP CO2 value affects all new vehicles registered from this date potentially pushing BIK up another couple of tax bands.
The Government has proposed that, from April 2020, full WLTP figures will be used for all BIK, VED and employers’ national insurance contributions.