New BMW 530d – misses critical tax break
Business Car Manager: Editor’s Blog
EDITOR’S NOTE, 19 March 2010: Since writing this blog, some of the information has changed – you should ensure you read blog 408, BMW gets it wrong, but puts it right for the correct perspective. Ralph Morton
IT’S not often BMW trips up over its own boot laces, but this time I think the car company has inexplicably stumbled.
The new BMW 530d is a phenomenal executive saloon. It drives well; no, it’s better than that, it’s an exceptional drive. But…
…For a brand that’s launching the BMW 320 EfficientDynamics – a saloon that delivers 160hp and emissions of just 109g/km – and has such attention to detail, how has BMW allowed the emissions of the 530d auto (not the manual) to just tip over the 160g/km tax break at 162g/km?
Strange, it’s more than that – plain mystifying. The result virtually disqualifies the car for most business car drivers. Instead, just the 520d and 525d have emissions below 160g/km.
If you are puzzled about the importance of the 160g/km tax break, it provides many benefits. The first is that under leasing rules the full amount of the lease is allowable against tax – if the emissions are 160g/km and below. Which is good. The second, is that if you buy a car with emissions of 160g/km and below, 20% of the cost can be written down each year; above this break only 10% – effectively a massive delay on recouping your tax allowance.
BMW’s corporate operations manager, Steve Chater, said this at the launch of the car: “We can ensure that this vital business car is positioned exactly where customers want it. That means getting the price, specification and wholelife cost proposition spot-on so that company car drivers and businesses have the strongest possible financial reasons for choosing the new BMW 5 Series, as well as the more emotive attractions of its agility, elegance, performance and high quality.”
I always always respect Stephen’s opinions. But in this case, he’s got it wrong – at least on the 530d anyway. Or his engineers have. Because the wholelife cost is not spot on. It’s wide of the mark.
Elsewhere there’s so much more to commend. Let’s take the inclusion of Dakota leather as standard on the new BMW 5 Series when it was an option on some models in the outgoing range. By ensuring every model is highly specified BMW has ensured that every buyer reaps the benefits at resale time.
Martin Ward, manufacturer relationship manager at industry analyst CAP Motor Research, is probably better at explaining this: “BMW has been wise to include leather trim and Bluetooth as standard on all new 5 Series. The way the used market works is that values are calculated from the lowest price achieved, which means most people would have lost out in money terms if the standard model came with cloth trim, as that would set the base price for values. With leather as standard, that base price will be higher.
“Once on the used market, all used buyers will come to recognise that all new BMW 5 Series will have the added luxury of leather seats, and this will no doubt add to its desirability, saleability and add value to the car.”
Overall, the BMW 530d is a brilliant car; or would be a brilliant car if it wasn’t for the addition of an extra 2g/km of CO2.
