Mercedes-Benz helps business users save on tax and running costs

Company car drivers of Euro IV specification diesel engines have been enjoying a benefit in kind (BIK) tax saving of three per cent. However, this will stop with the reintroduction of the three per cent diesel surcharge on 1st January 2006. But as hundreds of Mercedes-Benz CDI drivers have found out in the last month alone, this tax rise is one that can be beaten - and with the bonus of complimentary benefits which include Euro IV engine, trim and specification upgrades to a 2006 model Mercedes-Benz.

Clean power

Included in this offer is the chance to drive one of the most efficient, low cost, low emission diesel engines available today – the new V6 320 CDI engine from Mercedes-Benz, now fitted to the C-Class, CLK-Class, E-Class and all-new M-Class. Using third-generation common rail diesel technology with advanced piezo injection, this new family of engines is among the cleanest and most efficient currently available – and all without sacrificing power and driveability. Add to this a raft of potential financial savings, and Mercedes-Benz CDI technology now looks even more attractive than before.

With the cessation of the BIK saving for Euro IV on 31 December 2005, the tax burden for company car drivers will increase. For example, a 40 per cent tax payer registering a C 200 CDI Classic today will only be liable for annual BIK tax of £1,857. Come 1 January, that will increase to £2,135 - an extra £278 per year, or £828 over three years. The same situation for a V6 E 320 CDI Elegance will see tax contributions rise from £3,892 to £4,324 - £432 a year and £1,296 over three years. However, cars registered before 31 December 2005 enjoy the maximum benefit as the three per cent BIK is retained for the life of the vehicle.

Significant tax savings for every driver

With the latest and most efficient diesel technology available from Mercedes-Benz, company car drivers can make further savings on fuel efficiency. A direct comparison between a 3.2-litre petrol engine and a new V6 320 CDI diesel engine reveals significant savings over a three year/60,000 mile sample. Over that period, a typical 3.2-litre petrol engine would cost £8,418 to fuel. Yet the latest Mercedes-Benz V6 320 CDI engine, as fitted to the C-Class, E-Class and CLK-Class, would only cost £6,030 to fuel*. This reduces company car ownership by a further £2,388 over three years. If the BIK saving of £1,296 is added to the benefit of Mercedes-Benz diesel technology, the business user can benefit from a total saving of £3,684 over the same period. This significant saving could mean a company car user can afford to own and run a Mercedes-Benz rather than a more mainstream alternative.

Long distance economy

Furthermore, diesel V6 power from Mercedes-Benz has been proven to be more economical than the latest hybrid technology. To underline the significance of the highly efficient diesel technology, a pair of new ML 320 CDIs were recently driven from New York to San Francisco by Auto Bild magazine in a head-to-head test with a Lexus RX400h. The results showed that on the 3210 mile test, the V6 diesel-powered M-Class returned 31.04 mpg whilst the hybrid power of the Lexus managed 27.69 mpg. The results clearly indicate that Mercedes-Benz and its world-leading diesel technology, which it has been developing for over 70 years, is the premier brand for clean, efficient, powerful and economical diesel power.

World-beating reliability

And the new technology from Mercedes-Benz isn’t just efficient – it has proven to be reliable, too. To highlight this Mercedes-Benz has conducted a significant and FIA sanctioned endurance test. Earlier this year, three V6 E 320 CDI saloons covered 100,000 miles over a 30-day period at the Laredo test track, Texas, USA. In the process, the three diesel E-Class managed to break 22 world records. Apart from tyres, fuel and the usual service regime, no other mechanical or repair work was necessary throughout the test.

Fresh from breaking the 22 world records, the cars were then driven a further 1039 miles across the USA, from Laredo to Florida. This was an extreme economy drive, but the E-Class was more than up to the task returning 59.46 mpg. This resulted in a class-leading range from one 80-litre tank of diesel. This economy result goes hand-in-hand with the proven reliability and the benefits of choosing Mercedes-Benz and its world leading diesel power – all of which are available within a range of offers for business users.

This innovative diesel technology isn’t just the preserve of world record attempts and long distance drivers – it is available for customers to buy from every Mercedes-Benz retailer – and it is available today. It’s innovative technology that is being introduced in conjunction with some attractive propositions.

Engine and trim upgrades

Following the BIK reintroduction announcement, Mercedes-Benz decided to help user-choosers retain three per cent tax benefit and add some exciting offers on top. Mercedes-Benz has announced a wide range of complimentary upgrades which are available until the end of 2005. Since the initial upgrades were advertised in July the response has proven to be extremely popular seeing over 720 drivers take up the opportunity to save on their tax deductions and gain the complimentary trim, engine and specification upgrades. Indeed, over 200 cars have already been delivered.