Understanding Changes to the Vehicle Testing Regime
You may or may not have heard about the current New European Driving Cycle (NEDC) changing to a newer test called the Worldwide Harmonised Light Vehicle Test Procedure (WLTP), but what does this mean?
With effect from September 2018, all cars are tested under the new WLTP regime. Similar testing arrangements will be applied to LCVs from September 2019.
What are the Changes and Why?
The old lab test, NEDC was first introduced in the 1980s and is not true to real world driving. The WLTP introduces more realistic testing conditions, such as testing cars at higher average and maximum speeds, and testing them for longer distances. This gives a more accurate way of measuring a car’s fuel consumption and emissions.
This does mean that official CO2 emissions are likely to be higher under WLTP but there has been no indication as to whether this will affect CO2 bands. If you have an older car, your official CO2 figure will not change, as this never changes after its first registration.
During the transition period, there will be both cars that have been approved under WLTP and cars approved using NEDC. This means that where a car has been tested under WLTP, it will have an NEDC equivalent figure calculated for it, which will be used to assess the Vehicle Excise Duty (VED) and Benefit In Kind (BIK). The NEDC or NEDC equivalent figures will be used until April 2020, from which time the new WLTP will be used.
A tool called CO2MPAS will be used to calculate the NEDC equivalent rate, and this is an EU approved algorithm.
What Does this Mean for Me?
Some data is not currently available and many manufacturers are addressing and handling the changes in different ways. As such, TCH Leasing cannot currently guarantee indicative figures provided at the time of quotation as it is possible that changes may result in increases in first year VED, which will need to be passed on.
We will, however, work with both customers and manufacturers to help navigate through this period of transition and will let you know any information on changes to vehicles that have been quoted and ordered when we receive these details.
Once the information is provided, the official CO2 figure will only be that provided on the V5 document which is issued upon registration, and TCH Leasing will share that figure with you.
If you need any more help or advice regarding the changes, please contact us.