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Fleet buyers take advantage of tax breaks

Fri, 06 Jan 2006

A fall in private car sales in December was offset by increased activity in the business sector, with fleet buyers taking advantage of a tax break on purchases, it has been reported.

According to the Society of Motor Manufacturers and Traders (SMMT), the fleet sector saw substantial increases in market volumes at the end of last year.

SMMT chief executive Christopher Macgowan said: "Despite a tough 12 months, a record December has seen us through to a respectable year-end total.

"December diesel registrations boosted the total as company car drivers took advantage of the three per cent tax waiver before the end of the year. However, the economic slow-down in 2005 hit showrooms, and we expect 2006 to be another tough year for the industry. Dealers will continue to fight hard for every sale."

A weaker than average economy combined with concerns over cost pressure in the private vehicle industry saw the market fall by 123,553 units; down 10.3 per cent from last year.

However, trading in the commercial sector beat expectations due to the rise in diesel vehicle sales in December, Mr Macgowan added, giving an extra boost to the fleet insurance industry.

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