With Paris, Mexico City, Madrid and Athens all confirming that they will implement the ban to improve air quality by 2025, concerns for owners purchasing new vehicles with diesel engines have been raised, as they question what their investment might yield as we venture closer to the 2025 deadline.
Whilst this uncertainty is expected to make a dent on the retail market, the leasing market is expected to prosper, now that the consumer’s desire for ownership has never been lower.
Where opting for a lease was once took the hassle out of ownership and reselling, it now represents an added sense of security. By opting for a leasing, consumers no longer feel threatened at the potential for huge financial losses, given that this financial product guarantees the vehicle’s worth at the end of its lifecycle.
In effect, leasing is a long-term rental, designed to take the hassle out of car ownership. Your monthly fee is calculated by two main factors – what the car is listed at new and what the car will be worth at the end of the agreed term. Additional factors effect this depreciation too. These include number of years that you anticipate leasing the vehicle for and the projected mileage that expect to put on the vehicle. This sum is then divided over the number of months that the agreement is taken. The monthly fees can often look seemingly too good to be true, given that you are only paying for the depreciation of the vehicle and not building in any cost of ownership, like with a PCP agreement. This also means that you are not subjected to any interest charges either. Throughout the duration of the agreed term, the rental cannot and will not change, should this policy be accelerated in the UK.
While the likelihood of an accelerated plan is small, the severity of the issue at hand needs addressing. Diesel engines contribute to air pollution by two key ways. Physical matter, categorised as particular matter or PM, can penetrate the lungs in large doses, which when mixed with Nitrogen Oxides can contribute to cardiovascular illness.
Pressure mounting from environmental groups and health organisations have provided evidence to the world’s leading governments that detrimental health effects are conclusive, prompting them to address the matter urgently.