Frugal car boom leaves giant hole in UK economy

[red griff roger]

As reported in Sunday's papers: "improvements in fuel efficiency and rising sales of small cars mean motorists are finally spending less on petrol. The average new car returns 52.5mpg — a 29.3% improvement on a decade ago — and small cars such as the Hyundai i10 and Ford Fiesta now account for two in five car sales, according to the Society of Motor Manufacturers and Traders.

AA figures last week showed petrol sales fell from 14.9 billion litres in the first nine months of 2010 to 13.9 billion litres during the same period last year.

The sales slide — costing the chancellor more than £1.6 billion in lost tax — happened despite an increase in the number of registered cars, according to government statistics."

At least we are doing our bit for Queen and Country!

[Munter]

Well they told us to use less fuel, and used various tax strategies to try and make us. So we did.

I hope it didn't come as a surprise that what was attempted actually worked.

[WazzaL]

Munter said:

Well they told us to use less fuel, and used various tax strategies to try and make us. So we did.

I hope it didn't come as a surprise that what was attempted actually worked.

I thought the opposite. - Something the government attempted to do has actually worked!

[jammy_basturd]

red griff roger said:

As reported in Sunday's papers: "improvements in fuel efficiency and rising sales of small cars mean motorists are finally spending less on petrol. The average new car returns 52.5mpg — a 29.3% improvement on a decade ago — and small cars such as the Hyundai i10 and Ford Fiesta now account for two in five car sales, according to the Society of Motor Manufacturers and Traders.

AA figures last week showed petrol sales fell from 14.9 billion litres in the first nine months of 2010 to 13.9 billion litres during the same period last year.

The sales slide — costing the chancellor more than £1.6 billion in lost tax — happened despite an increase in the number of registered cars, according to government statistics."

At least we are doing our bit for Queen and Country!

I wouldn't put the decrease in fuel sales down to newer, more frugal cars. I'd mainly put it down to people being strapped for cash and thus looking for cheaper alternatives for certain car journeys including walking, cycling, bus and unemployment.

[2mad]

I see Rolls Royce are doing ok, still a few people around with a few quid but that's the Germans for you.Had to laugh at Christmas when i got a model Spitfire plane it said made in Germany on the box.

[900T-R]

jammy_basturd said:

I wouldn't put the decrease in fuel sales down to newer, more frugal cars. I'd mainly put it down to people being strapped for cash and thus looking for cheaper alternatives for certain car journeys including walking, cycling, bus and unemployment.

Indeed - the quoted 52.5 mpg is according to the NEDC test and hence only exists on paper. Between my 1995 Citroën ZX (official figure 167 g/km CO2), 2004 Mini One (160 g/km) and 2008 Mini Cooper (129 g/km) I get virtually identical mpg in identical conditions (all are/were my daily driver, commute hasn't changed and neither have the nature of my business trips or my driving style).

Some of the <110 g/km 'eco' models I tested recently under the same or rather gentler conditions lately were so far off their NEDC rating as to render the latter completely irrelevant. For starter I'd quote real world mpg of anything with a Fiat Twin Air engine as 'goverment figure/2'...

[Stevie Mojo]

2mad said:

I see Rolls Royce are doing ok.

Only in China probably.

[va1o]

Sounds like nonsense to me

[matthias73]

2mad said:

I see Rolls Royce are doing ok, still a few people around with a few quid but that's the Germans for you.Had to laugh at Christmas when i got a model Spitfire plane it said made in Germany on the box.

Imagine being the poor kraut who had to put that together

[jagnet]

I like to think that with the XJS I'm doing my best to make up the billion litre shortfall. It's tough, but someone's got to do it

It doesn't surprise me - with small cars and diesels becoming ever more popular, many people driving slower, and others not taking to the roads as much.

So, what other motoring taxes do we think are going to go up or be introduced to make up the difference?

[Nick1point9]

900T-R said:

jammy_basturd said:

I wouldn't put the decrease in fuel sales down to newer, more frugal cars. I'd mainly put it down to people being strapped for cash and thus looking for cheaper alternatives for certain car journeys including walking, cycling, bus and unemployment.

Indeed - the quoted 52.5 mpg is according to the NEDC test and hence only exists on paper. Between my 1995 Citroën ZX (official figure 167 g/km CO2), 2004 Mini One (160 g/km) and 2008 Mini Cooper (129 g/km) I get virtually identical mpg in identical conditions (all are/were my daily driver, commute hasn't changed and neither have the nature of my business trips or my driving style).

Some of the <110 g/km 'eco' models I tested recently under the same or rather gentler conditions lately were so far off their NEDC rating as to render the latter completely irrelevant. For starter I'd quote real world mpg of anything with a Fiat Twin Air engine as 'goverment figure/2'...

My golf bluemotion does a 'combined 62.3 mpg'. On my journey to work, 90% dual carriageway, I get 55mpg. Does about 64mpg on a run. Still kicks the st out the fuel consumption in my A3.

[smugglersvin]

I think its more to do with the fact that people can't afford to use there cars anymore due to unemployment lower wages etc,
I had to sell my car as I was laid off on the 23rd Dec, but I bought an old shed which I only use now when needed, so obviously I dont do the 40 mile commute to work anymore, also I moved nearer a town so that I'm in walking distance to local amenities, also I know a few people in the same boat who have done the same.

[smugglersvin]

matthias73 said:

2mad said:

I see Rolls Royce are doing ok, still a few people around with a few quid but that's the Germans for you.Had to laugh at Christmas when i got a model Spitfire plane it said made in Germany on the box.

Imagine being the poor kraut who had to put that together

It could have been worse, it could have been a Lancaster Bomber

[basherX]

Right, I'm confused.

Consumption down by 1 billion litres. Revenue down by £1.6 billion. So revenue loss is £1.60 per litre even though forecourt prices are, what, £1.43?

Now I may be missing something obvious here but I am an accountant working in the oil industry so anyone care to enlighten me?

Only thing I can think of is a reduction in RFL but the OP suggests to me we're just talking about fuel duties and VAT here....

[bristolracer]

I would have thought the ever increasing price of the stuff would compensate for reduced consumption.

Some of the taxes eg the VAT are a percentage and therefore as prices rise so does govt income.

[IanMorewood]

900T-R said:

Indeed - the quoted 52.5 mpg is according to the NEDC test and hence only exists on paper. Between my 1995 Citroën ZX (official figure 167 g/km CO2), 2004 Mini One (160 g/km) and 2008 Mini Cooper (129 g/km) I get virtually identical mpg in identical conditions (all are/were my daily driver, commute hasn't changed and neither have the nature of my business trips or my driving style).

Some of the <110 g/km 'eco' models I tested recently under the same or rather gentler conditions lately were so far off their NEDC rating as to render the latter completely irrelevant. For starter I'd quote real world mpg of anything with a Fiat Twin Air engine as 'goverment figure/2'...

Yep been running about in a Punto Evo Duologic over the weekend, supposed to do 53mpg the reading on the computer at just under 1000 miles was 28.4mpg, hardly surprising either as the gutless sh!tebox needed its nuts reving off to make any sort of progress

[Carfiend]

Guess we need to burn more liquid dead tree to make up the difference then.

[Pig benis]

I am really interest as to what the coalition will be dreaming up now. I do wish they would leave the cash strapped motorist alone for a while, but that most definitely won't be happening. "Here have some more tax, on top of a bit more tax", Thank you Mr Cameron (I'm still not a labour fan though)

[McSam]

IanMorewood said:

Yep been running about in a Punto Evo Duologic over the weekend, supposed to do 53mpg the reading on the computer at just under 1000 miles was 28.4mpg, hardly surprising either as the gutless sh!tebox needed its nuts reving off to make any sort of progress

..I think I've found your problem..

[OdramaSwimLaden]

2mad said:

I see Rolls Royce are doing ok, still a few people around with a few quid but that's the Germans for you.Had to laugh at Christmas when i got a model Spitfire plane it said made in Germany on the box.

Slightly OT:

http://www.gizmodo.co.uk/2012/01/health-and-safety...