New study highlights increased costs from WLTP and taxation as CO2 jumps 19.7%
WLTP and BiK changes impact on ownership costs according to a new study.
New data that examines the impact of WLTP and BiK changes on vehicle affordability has been released by cap hpi.
The average petrol, diesel or hybrid car has seen a 19.7% increase in CO2 under WLTP and BiK increases of £714 a year, while VED has jumped £300, according to a new study from cap hpi.
Average C02 values increased 26 grams from 135 under NEDC to 161 under WLTP. The MPV sector saw an increase of 33% followed by large executive, 30% and SUV, 29%. The smallest percentage increase was seen in the supercar sector at just 8%.
The most significant increases in BiK were seen in the MPV sector at 3.5%, upper-medium, 3.3% and supermini, 3.2%. Luxury executive and supercar saw no increases.
The study comes as cap hpi rolls out its WLTP Emissions Service API which gives dealers and fleets a solution to manage dynamically configured vehicles, and content collation of new, static values within new vehicle data (NVD).
Commenting on the findings, Jonathan Clay, head of vehicle identification at cap hpi said: “The combination of the introduction of WLTP and a new tax regime aimed at encouraging private drivers and fleets to make greener motoring choices has driven up costs across the board. But it’s also clear that some sectors are more affected than others, which will undoubtedly drive a change in the shape of the UK car parc.
“We have led industry efforts to manage the changes and worked closely with partners across the industry to ensure customers have the data they need to navigate the transition to WLTP CO2 emissions values.”
WLTP comes into force in the UK on 1 April for VED and 6 April 2020 for BiK. Vehicles registered after this date will be taxed using the new WLTP CO2 emissions values. The values will relate to the specific configuration of an individual vehicle, taking optional equipment fitted to the vehicle into account for the first time.
Large executive vehicles saw the most substantial increase in VED at £546, followed by executive, £459, and MPV, £455. City car and supercar saw the smallest increases with £52 and £40, respectively.
On average diesel vehicles saw CO2 increase by 30 grams while petrol-hybrid vehicle rose by 29.3 grams. Diesel plug-in hybrids saw CO2 decrease by 1.9 grams on average.
The petrol hybrid, petrol and diesel sectors all saw increases in BiK of 4.1%, 2.6% and 2.5% respectively. Petrol plug-in hybrid saw a decrease of 5% and diesel plug-in hybrid of 5.5%.
The diesel sector saw the largest increase in VED of £423 on average, followed by petrol, £232, and petrol hybrid, £180. Petrol plug-in hybrid only saw a rise of £6 while diesel plug-in hybrid saw no increase.
Electric vehicles made the biggest economies in BiK with the Porsche Taycan saving over £16,000 and the Tesla Model 3 £8,000. The Kia e-Niro, Hyundai Kona and Nissan Leaf all saw savings of around £6,000.
The data firm has warned that anyone wishing to quote a vehicle with options could see it span different bands; with 49% of models crossing more than one BiK band, and 41% for VED bands. It has developed its Emissions Service to tackle this challenge, and it provides accurate real-time data and accurate first-year costs to buyers for the exact vehicle configuration
Clay concluded: “The team at cap hpi worked hard to ensure customers had the information they need to navigate the changes and operate efficiently. The WLTP fill rate is now over 90% and growing every day. It drives an eco-system of data and tools that are designed to help companies make smarter decisions.”
For more information on cap hpi’s NVD services visit https://www.cap-hpi.com/products-and-services/new-vehicle-data