Hire or buy? Adapting your fleet for Euro 6 emissions standards

Euro 6 imposes the most stringent ever restrictions on the emissions produced by diesel vehicles, particularly in terms of nitrous oxides (NOx).

Since September 2014, all new vehicles have been subject to these standards, which vary depending on whether they are applied to passenger vehicles, LCVs under 1760kg reference mass or heavier LCVs under a maximum of 3,500kg.

Just as importantly for fleet managers, the regulations also require that new systems of On-Board Diagnostics (OBD) will have to be updated from September 2017 to monitor the tighter limits involved. There is simply no escaping these standards, and Brexit is unlikely to see them swept away.

The regulations have been a major challenge for vehicle manufacturers, who have responded by using different technologies to keep particulate emissions as low as possible. They have done this in three main ways:

  • Exhaust Gas Recirculation. By recirculating exhaust gas into the combustion cycle, it reduces the amount of nitrogen available to be oxidised to NOx.
  • Catalytic Converters. NOx is stored in a catalytic converter and reduced to harmless nitrogen during short, fuel rich periods. Similar systems can also destroy NOx in the exhaust system.
  • Selective Catalytic Reduction. A separate fluid called AbBlue is added to the vehicle, which acts to neutralise NOx in exhaust gases.

The more high powered the vehicle, the harder it is to keep emissions within Euro 6 standards and the more likely it is that manufacturers will use a combination of the above technologies.

But what do the Euro 6 emissions changes mean for your fleet?

On the positive side, lower emissions mean that it will cost less to tax your vehicles. The superior fuel economy of the new engines will also deliver cheaper running costs.

On the negative side, manufacturers have had to make major investment in cleaner diesel technology, and these costs are being passed on to the customer in the form of higher vehicle prices. The greater complexity of the new systems also mean higher maintenance and repair costs throughout the vehicle’s lifetime. If a vehicle uses AdBlue, it is another outgoing that becomes significant if you run a large fleet.

Some fleet operators have adapted to the new regulations by keeping hold of their pre Euro 6 vehicles for longer. But this is fast becoming an unrealistic option. In 2020, London’s Ultra Low Emissions Zone will charge non Euro 6 diesel vehicles to use its roads – a major and unsustainable cost for many fleet operators. Similar zones are also on the table for other major UK cities.

This leaves you with two main choices. Firstly, you can invest in new vehicles and accept the higher maintenance costs. However, to do so, you will need to use significant amounts of capital investment: 3.5 tonne electric vehicles currently cost around double the cost of an equivalent vehicle, while 18 tonne electric vehicles cost around 4 to 5 times more than their diesel counterpart.

Alternatively you can opt for flexible hire. In this way you can replace vehicles with Euro 6 compliant models as and when they need to be renewed. Instead of major capital investment, you simply pay a monthly charge that includes all maintenance, and provides you with replacement vehicles in the event that one has to be taken off the road for repair.

Balancing the increasingly demanding needs of customers with emissions regulations and operating at a profit can prove a challenge for many fleets and upgrading to a new vehicle to stay compliant can be an expensive additional outlay. However with flexible hire, this can be a much more manageable transition, as the costs can be spread over a number of years.

Find out more about how  our flexible hire solution can benefit your business by speaking to one of our experts. Simply click on the button below, fill in the form and one of our friendly Flex-E-Rent advisers will call you back and walk you through your needs.

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