Fuel Card News Motoring Updates: Leasing rises

The recent VAT rise has meant a fresh rise in leasing costs for many fleets, according to a new report in Fleet News.

The changes have meant that leasing companies must now pay more VAT when selling fleet cars than they were able to reclaim from the Government when the cars were first purchased.

Motoring industry experts expect most leasing firms to pass this charge on to their fleet-operating customers.

John Lewis is Chief Executive of the British Vehicle Rental and Leasing Association (BVRLA). He said: “It is a commercial decision for each leasing company but most of the contract hire agreements that I am aware of would entitle the leasing company to make the charge.”

Meanwhile, production levels at the Rolls-Royce factory in West Sussex have reached record levels, reports the BBC.

More than 300 vehicles were built at the plant in June – the highest level since manufacturing began on the site in 2003.

Rolls-Royce Motor Cars Chief Executive Torsten Muller-Otvos said: "This is an excellent interim result and we are well on our way to meeting our target of at least doubling our 2009 sales."

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