2011 Ford Mondeo

Ford has released the details of their new-look flagship model, the Ford Mondeo large family car and fleet favourite. This is the most stylish and technologically advanced Mondeo ever built with a fresh restyled exterior, enhanced interior, the new high-efficiency Ford EcoBoost petrol and TDCi engines plus a host of other safety features and enhancements.

2011 Ford Mondeo Estate

Some of the new technology highlights include Lane Departure Warning system, Auto High Beam, Driver Alert, Active Grille Shutter and Smart Regenerative Charging. The diesel range with CO2 emissions as low as 139g/km is likely to be the fleet favourite from a company car taxation perspective and also fuel economy.

On the exterior, LED day running lights emphasise the premium appeal and sporty looks and on the side, the new Mondeo gets a chrome window surround for the higher series models. Full details will be loaded shortly under the vehicle technical shopper with new Ford contract hire prices. The new Mondeo goes on sale in September/October 2010.

Yesterday, George Osborne, delivered one of the toughest budget’s in living memory, to tackle the country’s £155 billion deficit. The five year programme aims to eliminate the hole in public finances and to re-build the British economy. The major items that affect Britain’s SME fleet and company car drivers are below.

VAT rises from 17.5% to 20% on the 4th January 2011

As forecasted the increase in VAT went ahead and the SMMT (Society of Motor Manufacturers and Traders) has estimated this will add around £300 to the price of the average new car. However, when a contract hire company purchases a vehicles to lease, they can recover the VAT on purchase. They also account for VAT on disposal as well. This still ensures contract hire is a method of vehicle finance that is still attractive for small businesses as the amount to finance takes into account the leasing company VAT recovery.

VAT is also added to any contract hire rental and if there is any private use of the vehicle, there is a 50% restriction on the VAT you can recover on the finance element of the rental. The VAT applied to the maintenance element is still 100% recoverable.

On an average non-maintained contract hire rental of say £250 before VAT, the changes in 2011 will add approximately £3.13 to the effective rental ( the true cost of what you will be paying after VAT is taken into account).

Fuel duty

The Chancellor announced there would be no further increases over and above those already announced by the previous Government in the March 2010 budget. This means that there will be a 1p per litre rise in duty on the 1st October 2010 and a further 0.76p a litre rise on January 2011.

The Chancellor also said that fuel duty would increase by 1p a litre above in inflation in 2011/12, 2012/13, 2013/14 and 2014/15. He also announced that he has asked the Office for Budget Responsibility to undertake an assessment over the summer of the effect of oil price fluctuations on public finances and will examine options for a “fair fuel stabiliser”. The Government is also going to consider a fuel duty discount for motorists who live in remote rural areas.

Company car tax

The Chancellor also confirmed the coalition Government intends to press ahead with the company car benefit-in-kind tax threshold changes that it inherited from the previous administration -see the table below. It is now even more important than ever to choose your new car with a low CO2 emission if you are looking to save money. The Super Shopper quote engine allows you to choose the type of model you are looking for and also set the CO2 range you are trying to achieve, so do give it a go as it will save you time and money.

G/km of CO₂

• Add 3% for diesels up to a maximum of 35% (2012/13 unconfirmed)

Car Comparator

Honda (UK) has just launched a new comparison tool which will enable you to easily compare any Honda car with that of another brand. The new comparison tool looks at the total life car running costs showing you how much you are likely to spend if you end up buying instead of car leasing.

The comparator also looks at standard “on the road prices”, CO2 emissions, fuel economy, company car tax, VED band, insurance group and the key features of the cars. Data is supplied by CAP monitor who are an independent vehicle information Company. CAP supplies all the data for the Vehicle Information shopper on Comparecontracthire.com as well. Honda Finance is also a partner on the site so if you are interested in seeing Honda contract hire (car leasing) prices as well they are readily available.