VAG scandal, Company cars & BIK

[BrettMRC]

It's looking increasingly likly that company car/lease costs are going to rise for those people who have a VAG diesel on company lease.

So, assuming the tax grouping is rasied after revision of the CO2 rating, this indicates that BIK will increase for the impacted users - I'm not certain how much it will raise BIK per vehicle, but will probably be between 1-10% depending on how bad the numbers were fudged. Therefore, can a user legitimately reject a car mid-term if the costs have increased beyond those projected? (My thought is probably not as the increase in cost is via taxation and not a cost imparted by the lease companies?)

What are peoples thoughts?

(Apologies if this has been asked before)

[PurpleMoonlight]

I thought the Government had stated it wasn't going to seek to revise existing vehicles classification.

[Riley Blue]

PurpleMoonlight said:

I thought the Government had stated it wasn't going to seek to revise existing vehicles classification.

It did but do you believe it?

[BrettMRC]

As above - this is so wide ranging, I expect something will be passed on to the motorist!

[Devil2575]

What is your source for this?

[BrettMRC]

Some very vague comms from the lease firm, called them up and asked out right - they were adamant costs would rise... (although I was talking to customer service and not a decision maker)

[Devil2575]

Surely the cars will be modified by VW to comply and as asuch there there should be no increase? Aren't VW recalling all the cars involved?

[DaveH23]

I would imagine most decent employers would increase the basic wage to account for the increase in BIK until renewal time if you where tied to the car.

[Devil2575]

http://www.theguardian.com/business/2015/oct/02/vw...

http://www.fleetnews.co.uk/news/fleet-industry-new...

[PurpleMoonlight]

BrettMRC said:

As above - this is so wide ranging, I expect something will be passed on to the motorist!

I expect the Government to look to be compensated by VAG in relation to the lost revenue.

[Devil2575]

Are you sure this isn't just the lease firm saying they are going to increase their charges?

[MrBarry123]

Devil2575 said:

Surely the cars will be modified by VW to comply and as asuch there there should be no increase? Aren't VW recalling all the cars involved?

This.

I would expect that those who don't abide by the imminent recall will pay the increase.

[Sheepshanks]

BrettMRC said:

It's looking increasingly likly that company car/lease costs are going to rise for those people who have a VAG diesel on company lease.

I doubt that's true - what would the lease cost increase?

BrettMRC said:

So, assuming the tax grouping is rasied after revision of the CO2 rating, this indicates that BIK will increase for the impacted users - I'm not certain how much it will raise BIK per vehicle, but will probably be between 1-10% depending on how bad the numbers were fudged.

Even if that happened, which it won't, it'd still be small beer compared to the huge increases already baked in to the BIK rates.

[Collectingbrass]

Sheepshanks said:

BrettMRC said:

It's looking increasingly likly that company car/lease costs are going to rise for those people who have a VAG diesel on company lease.

I doubt that's true - what would the lease cost increase?

My spider senses detect it's a lease company trying to scare people into new lease deals before they "get hammered" by a rise in BIK.

[KevinC6Corvette]

All the cars in question have a stated CO2 on the V5C. This is what the BIK is based on therefore if you comply with the recall the Govt. has no basis for increasing it.

Interestingly my Skoda Octavia Scout TDi is rated at 47.9mpg with the CO2 that incurs, my average over 12K miles is actually 50.2, perhaps I should ask for a reduction in the VED rate? No way am I going to allow a recall to mess it up!

[WJNB]

DaveH23 said:

I would imagine most decent employers would increase the basic wage to account for the increase in BIK until renewal time if you where tied to the car.

What planet you on?
Seriously - in some 30+ years of being issued or choosing a company car & most years seeing an increase in my personal costs for so doing NO employer indicated any interest in my dilemma. Salary increase? No way,in other words "hard luck".
In the end I found other ways of increasing my income & in my employers time & at their expense so I got my own back for their indifference.

[S11Steve]

Collectingbrass said:

Sheepshanks said:

BrettMRC said:

It's looking increasingly likly that company car/lease costs are going to rise for those people who have a VAG diesel on company lease.

I doubt that's true - what would the lease cost increase?

My spider senses detect it's a lease company trying to scare people into new lease deals before they "get hammered" by a rise in BIK.

The concern is that residual values are going to be affected by the issue. Lease costs in simple terms are based on the difference between purchase price and RV. If the latter falls without a similar reduction in purchase price, then the monthly cost will increase to meet the difference.

It's still too early to know for certain what is going to happen with RVs, or if VAG will increase supply discount terms to leasing fleets to cover the shortfall.

[anonymous-user]

The residual value won't affect current leases though, the monthly price is fixed.

[anonymous-user]

WJNB said:

DaveH23 said:

I would imagine most decent employers would increase the basic wage to account for the increase in BIK until renewal time if you where tied to the car.

What planet you on?
Seriously - in some 30+ years of being issued or choosing a company car & most years seeing an increase in my personal costs for so doing NO employer indicated any interest in my dilemma. Salary increase? No way,in other words "hard luck".
In the end I found other ways of increasing my income & in my employers time & at their expense so I got my own back for their indifference.

I think he's on the same planet as you are.......