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Mercedes-Benz Helps Business Users Save On Tax And Running Costs

Published: 1st September 2005

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.


Mercedes Benz E-Class

Mercedes Benz E-Class


Our Mercedes Benz E-Class Guide lists the full specification of the current UK E-Class range, including car prices, fuel consumption, dimensions and other vital data.

Price Range: £28,150 - £68,080
Body Style:
Fuel: / /
Models in the range: 25

We have road tested the Mercedes Benz E-Class, to read our in-depth car review:

Mercedes Benz E-Class Review - Feb 2005

Our Car Buyer’s Guide covers all of the UK’s major new cars and includes CO2 ratings and car insurance groups. Data updated on the 28th Nov 2008


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