Now the type and specification of vehicle are clear, it is important to consider the fuel efficiency of the vehicle and its environmental performance.

For cars

For company cars, most of the taxation is based on CO2 emissions and, as such, selecting vehicles with high CO2 emissions will be very expensive for the company and create a high tax burden for the employee.

Aim for lowest emissions practical. This will save the employee and employer money as well as provide environmental benefits. Also consider fuel type and fuel economy. Fuel is typically 25% - 33% of the running cost of a vehicle and hence selecting fuel efficient vehicles is very important.

For vans

For vans, accurate fuel economy figures and CO2 emissions are hard to obtain, so it is advisable to source manufacturer demonstrator vehicles and test them against each other in actual use to get an indication of fuel efficiency. Also consider tailpipe emissions to ensure free access to city centres. The London Low Emission Zone (LEZ) introduced in February 2008 means that commercial vehicles will have to meet tailpipe emissions standards if they wish to enter Greater London. This should only be an issue for those acquiring second hand vehicles as all new vehicles will meet the latest environmental standards.