Edited 18 March, 20215 yr by e-Roottoot

But on the other hand, EV are now exampt from £320 first 5 years luxury car tax: https://fleetworld.co.uk/budget-2020-electric-cars-exempt-from-ved-surcharge/

 

In another words: 

<£40k => £500 less grant => price increase by £500 

£40k - £50k => pay £1600 less tax, but also £500 less grant => saving of £1100 over 5 years of ownership 

>£50k => pay £1600 less tax, £3500 less grant => price increase by £1900 over 5 years of ownership 

 

This makes Model 3 standard range+ REALLY appealing. Zero tax, £40k, access to supercharger network. 

 

 

 

Another thing is that gas used by gas boilers to heat homes will see its tax rise by a lot in 2023 while electricity tax is held steady. Sounds like totally opposite of EV pushbacks were saying charging EV will get taxed.  

 

I welcome increase in gax tax, in order to move towards heat exchange or similar, we need economy of scale on electric heat exchange production and installs. But if gas is still viably cheap to burn, it's not going to push enough people to invest in greener solutions. 

Edited 12 March, 20206 yr by wyx087

53 minutes ago, wyx087 said:

In another words: 

<£40k => £500 less grant => price increase by £500 

£40k - £50k => pay £1600 less tax, but also £500 less grant => saving of £1100 over 5 years of ownership 

>£50k => pay £1600 less tax, £3500 less grant => price increase by £1900 over 5 years of ownership 

 

This is what I was pointing out on FB, it’s certainly not enticing new people to switch to an EV as most would be up to £40k

 

54 minutes ago, wyx087 said:

This makes Model 3 standard range+ REALLY appealing. Zero tax, £40k, access to supercharger network. 

 

Until you look at the build quality first hand (or simply rent the car)

 

54 minutes ago, wyx087 said:

Another thing is that gas used by gas boilers to heat homes will see its tax rise by a lot in 2023 while electricity tax is held steady. Sounds like totally opposite of EV pushbacks were saying charging EV will get taxed.  

 

EV’s will get taxed, but not until they are the outselling ICE cars, so we have many years left of £0 VED.

I would be more worried about why an EV has an insanely high selling price. That erases any appeal to buy one and it takes ages to recover from advantages over ICE cars.

Slowly reducing grant is to be expected.

Abolish luxury car tax for EV is a good move because EV tend to be more expensive while not really luxury. (as noted with TM3) 

Removing the grant for £50k+ EV I think is a good move, push the manufacturers to produce affordable (relative to the laughably inefficient huge SUV's) EV's also make sense. 

 

I've seen first hand one first batch of Model 3, it's not great, certainly doesn't warrant the price tag looking from car perspective. But it doesn't feel any worse than Octavia or Leaf, whilst having tech and charging advantage. So as an overall product, I think it's priced about right. 

 

Absolutely EV will get taxed, somehow. Just not home charging (as people suggested by applying petrol car logic) and not in the near future for VED. The government has made commitments (2035 or 2040 for cars, 2050 for carbon emission), so this and future budgets will move to fulfill this commitment. As a result EV has this gravy train for a while to come. Hopefully this is incentive enough for new people to switch to EV. 

 

7 minutes ago, RicardoM said:

I would be more worried about why an EV has an insanely high selling price. That erases any appeal to buy one and it takes ages to recover from advantages over ICE cars.

I blame the ICE makers who also happen to assemble cars. They had been resisting the change to remove their core product from cars, and haven't invested in battery factories early enough. 

 

I hope VW will come out on top, seeing they've had a lot of talks about investing in EV over last few years and are dedicated whole factories to build their MEB platform. PSA haven't committed, the e208 and sister cars are built on ICE car production lines. Nissan hasn't committed, building Leaf in same Juke production line. 

@RicardoM

The Grant is just a Bung to Dealers and Manufacturers and lets them have ridiculous RRP's for OTR.

 

As to the 'taking ages to recover the advantage over ICE cars'.   That might be true for some, and might depend on location location location.

 

For those leasing and paying the same as they might to lease a ICE vehicle but then getting free charging, free parking, tax breaks and access to places that an ICE car does not 

then the saving can be from the day you get the EV.

Like if your usual fuel costs are £16.50 per 100 miles & that goes to £0.00

Personally i spend around £50-£60 a week on fuel. On a high mile week much more.

 

Horses for courses, and best not think of every country or even city as being the same.

Edited 12 March, 20206 yr by Roottootemblowinootsoot

The Home Charger Installed has become a bit of a caper with inflated prices and Manufacturers including 'free' with the car or Government Grants to install where the person gets them free and the Supply and fitting price you are not actually paying is put at £900.

Edited 12 March, 20206 yr by Roottootemblowinootsoot

The PICG has been reduced again and is now only available on cars £35k or less.

 

https://www.gov.uk/government/news/plug-in-car-van-and-truck-grant-to-be-targeted-at-more-affordable-models-to-allow-more-people-to-make-the-switch?fbclid=IwAR2uRO2ny7uTXcYtqjNiiZ09Q-bjWvZp7DWbEs-YfWjwLEAvsj1gVgK8nJ0