What’s a CO2 target going to do for you?

The environmental friendliness of a vehicle isn’t the be all and end all of your purchase, but for a rising number of Australians it’s a very important consideration. Cars like the Mazda 3, Hyundai i30 and Volkswagen Golf regularly pop up in the Australian Government’s top sellers lists, and all sit toward the positive end of the carbon dioxide (CO2) emissions spectrum.

Of course, when it comes to CO2 emission they don’t hold a candle to electric cars like the Nissan Leaf or BMW i3, but a new government push on this issue might see even more environmentally friendly light cars hit the market. It could be something that influences your next novated lease, so what’s the change?

Commitment to the cuts

Light vehicles cause less than 1 per cent of Australia’s total greenhouse emissions.

In a February 11 release from the Federal Chamber of Automotive Industries (FCAI), the organisation’s chief executive Tony Weber dissected the recent Vehicle Emissions Discussion Paper from the Commonwealth government.

It was noted that while light vehicles cause less than 1 per cent of Australia’s total greenhouse emissions, this was no reason to stop reducing the level of gas coming from this type of transport. Mr Weber was thrilled that the government acknowledged the following potential measures to be taken down the line regarding:

  • The quality of fuel used in cars
  • The behaviour of drivers
  • Changes to infrastructure
  • Incentivising the purchase of low-emissions vehicles

“To effectively introduce a range of low-emissions vehicles, it is important the industry and governments work together to provide the appropriate infrastructure,” Mr Weber added. Once an emissions target is decided upon, perhaps we will see a raft of funding for such projects. For now, everything is a work in progress.

Too much too soon?

While reducing cars’ impact on the environment is undoubtedly a good thing, there are nonetheless a few drawbacks that might give you pause before picking one up. Allianz Australia recently listed the pros and cons of using zero-emission vehicles, and pointed out a few of these.

  • You can’t travel as far in an electric car (hybrids have a much better range)
  • Hot temperatures can reduce their shelf life
  • There’s a much higher starting price tag than for fuel-based vehicles
  • Green cars tend to depreciate much faster than non-green counterparts
What kind of emission levels do you want in a vehicle?What kind of emission levels do you want in a vehicle?

Over time, this situation will probably improve, but for now, there can be significant financial imposts for the regular Australian buyer. Of course, if the government steps up with funding across the board and a push to reduce emissions, these barriers could be reduced.

It’s also worth remembering that with novated leasing, you can bundle all of the costs into a pre-tax payment, which can make it much easier for you to manage. It’s well worth getting in touch with the Alliance Leasing team to see just how much you can save in this way.

Where we stand

Australia has had some form of regulation on vehicle emissions since the early 1970’s, and the Department of Infrastructure and Regional Development says the rules have been tightened consistently since then.

Environmentally friendly cars are constantly rising in popularity.

With better indicators of Australian air quality and leaps and bounds in technology, environmentally friendly cars are constantly rising in popularity. If this is a focus of yours when it comes to buying a new vehicle, then it’s well worth considering a novated lease.

Differing fuel costs, the higher base price and any ongoing maintenance and insurance particulars can all be covered in one payment with a novated lease, and it all happens before you pay tax on your income. It’s an assured, smooth process that can help you access vehicles that might otherwise be out of your price range.

Want to find out more about particular vehicles or how a novated lease can help you get them? Give the team at Alliance Leasing a call.