After Chancellor of the Exchequer George Osborne gave motorists a brief respite to spiralling fuel costs with a 1p per litre reduction in fuel duty this week, Peugeot has offered advice to anybody looking for a new car.
Jon Goodman, MD of Peugeot, believes the answer lies in CO2 emissions. He said: "Fuel-efficiency determines a vehicle’s CO2 emissions, and hence the tax an owner or driver will pay, and it determines how much an owner or driver will pay at the fuel pumps, regardless of the advertised price of a litre."
A vehicle’s CO2 emissions are used to determine VED in the UK and all cars with CO2 emissions below 100g/km are exempt from paying the yearly charge.
They are also not required to pay the London congestion charge and low-CO2 emissions will inevitably lead to lower fuel costs, according to Goodman.
"There will be many column inches dedicated to working out the best way to adapt to the new tax regime but you don’t need a tax accountant to help you decide how to save money on motoring," he explained.
Peugeot currently boasts one VED-free model; the Peugeot 207 1.6-litre HDi 90bhp diesel. CO2 emissions from the supermini are 99g/km and fuel economy is an impressive 74mpg on the combined cycle.
Peugeot will add to its VED-free range when the updated Peugeot 308 hatchback is launched in the next few months. The 308 will add Start-Stop technology to its 1.6-litre 112bhp diesel engine and will lower CO2 emissions to 98g/km.
A third sub-100g/km model will be introduced in Autumn when the world’s first diesel hybrid car, the practical Peugeot 3008 HYbrid4, arrives in UK showrooms.
Goodman concluded: "Simply choose the most fuel-efficient car for your needs."