Electric plug-in grants may be cut at any moment – drivers ‘unlikely’ to be given notice
Electric cars: Ford UK detail motoring options for drivers
When you subscribe we will use the information you provide to send you these newsletters. Sometimes they’ll include recommendations for other related newsletters or services we offer. Our Privacy Notice explains more about how we use your data, and your rights. You can unsubscribe at any time.
The Office for Zero Emissions Vehicles (OZEV) has said they are “unlikely to be able to provide additional notice” on when further reductions are made. Many in the motoring industry were critical of not receiving any notice of an intention to reduce the scheme earlier this year.
The grant was reduced without any prior warning in March from 3,000 to £2,500.
More importantly, the changes reduced models which cost more than £35,000 which affected many drivers who were already halfway through the booking process.
It meant drivers who thought they would receive the discount eventually missed out on the savings.
The OZEV said low levels of demand when the scheme was first launched meant the Government could offer regular updates.
But vehicles that were eligible for the grant were being sold six times higher than normal.
The Government said this dirge in demand caused officials to bring the original date forward.
The sudden change has also affected dealers who were unable to secure stock at lower rates.
Sue Robinson, chief executive of the National Franchised Dealers Association, said the meeting did provide clarity for retailers.
Car tax changes are the ‘biggest reason’ behind electric car demand [COMMENT]
Electric cars are too expensive as four in five are put off by prices [INSIGHT]
Hybrid cars are ‘gaining popularity’ and outselling petrol cars [ANALYSIS]
She added: “Going forward, we will continue to work closely with OZEV to best represent our members’ interests and, in turn, provide franchised dealers with clear and timely guidance.”
However, for many manufacturers, a reduction in upfront costs is seen as an attractive marketing tool.
Concerns over the expense of electric cars is still one of the biggest barriers to adoption and the plug-in grant discount is seen as a challenge to this.
Many firms acted quickly to reduce the overall price of their models to meet the £35,000 threshold when the changes were announced.
Nissan, Vauxhall, Peugeot, BMW and Hyundai all reduced models to just below £35,000 when the changes were announced.
Volkswagen has also decided to expand its City range just to endure one of their cars are covered by the grant.
The two new variants of the ID4 – City and Style – will allow drivers to buy a fully electric model at a more affordable price.
With the plug 9n grant discount taken into account, drivers will pay just £32,150 to get their hands on the City model.
Sarah Cox, head of marketing at Volkswagen UK said: “We are delighted to launch the entry-level ID4 City, which is eligible for the Government’s plug-in vehicle grant.
“We aren’t finished adding to the ID4 line-up either, because in the coming months the ID4 GTX will open for order to UK customers.”
Usually, the grant is applied for by the car manufacturers on the customer’s behalf.
The reduction acts as a straightforward discount to the car’s list price but drivers can be caught out.
The list price typically includes any optional extras such meaning the price you pay may not be what the car was originally advertised for.
Source: Read Full Article