Operators ill-prepared for Euro6
Two in five transport operators across the UK have no purchasing plan in place to deal with the imminent Euro6 legislation, according to a recently published survey by Close Brothers Asset Finance. The latest Close Brothers Business Barometer also reveals that a further 14% of companies polled admit to having given no thought at all to the new emissions standards coming into force on 1 January 2014. This is despite 41% of those surveyed saying they are concerned about the impact the rules will have on their cash flow. Of the 26% of companies that said they do have a purchasing strategy in place, the findings signal an almost equal split in those who have pulled forward their purchasing to avoid Euro6 (51%) and those who plan to upgrade to Euro6 (49%) as soon as possible.
MD of the transport division at Close Brothers Asset Finance, John Fawcett, said, ‘We all know that Euro6 is a much more expensive proposition than Euro5 so it’s a concern that with less than two months to go until the implementation of the new rules, many businesses have given little or no consideration as to how they will upgrade their fleet. Some firms decided to pull forward purchasing to the first part of 2013 but that’s no longer an option. The reality is that waiting until 2014 means that your capital expenditure will be significantly increased to meet the new emissions standards. The cost of upgrading isn’t a problem for very large fleets, but it will place the majority under serious cash flow pressures. Getting your house in order now, so to speak, is crucial. Asset finance solutions can help ensure that businesses stay on the road by allowing them to spread the cost of purchasing any new vehicles.’