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Auto Express has revealed that the Government plans to throw a spanner in the works of electric car sales.

Here is the story: "With the upcoming 2035 petrol/diesel/hybrid ban, consumer editor Hugo Griffiths thinks it’s crazy that the EV grant could be scrapped

"We're only in February, but a contender for the biggest motoring story of the year has already emerged. The announcement that the ban on sales of new petrol and diesel cars is being brought forward by five years to 2035 is significant enough, while everyone was caught off guard by news that the ban will cover hybrids and plug-ins, too. Then, days later, a government minister revealed that the current electric vehicle grant – bringing a sizeable £3,500 saving on the cost of an all-electric car – could well be scrapped by the end of March.

"So we have 15 years to buy new petrol, diesel and hybrid cars (and EVs, for that matter). Based on current sales, that equates to 34.5 million new models finding homes – equivalent to every single car in the UK being replaced. Oh, and it applies to vans, too – not the best of news for the UK’s small-business owners.

"However, the second-hand market looks like it will remain an untouched haven for petrolheads. With the average car being 14 years old at scrappage, this is as much a 2049 story as it is a 2035 one, then.

"It is impossible to argue with the need to improve air quality, while electric cars offer genuine advantages; the recent cold snap, for example, provided a missed opportunity to highlight the benefits of cabin pre-heating, which many EVs now offer.

"People need their cars and are attached to the freedom they provide, while petrol and diesel have a century of legacy in this country. Cooperation between government and drivers is key to making the switch to electric work. That a Transport Minister was willing to speak with us is encouraging, but drivers need to be sold a dream, not threatened with an expensive nightmare."
 

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I might be alone here, but I kind of can’t get too excited about it if it was scrapped to be honest.

EVs need to stand on their own two feet at some point, I do believe that anything grant funded stays higher priced than it otherwise would be. See Solar Panels as an example. Rules around grants for EVSEs and % funding look to me likely to be keeping them at a high price, and the wiring work along with it.

£3.5k hardly makes the average EV suddenly affordable, but I accept it seems to drive behaviours of those who can afford them. Maybe they aren’t the people who need to be helped with any scheme?

Let’s see what happens.
 

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I might be alone here, but I kind of can’t get too excited about it if it was scrapped to be honest.

EVs need to stand on their own two feet at some point, I do believe that anything grant funded stays higher priced than it otherwise would be. See Solar Panels as an example. Rules around grants for EVSEs and % funding look to me likely to be keeping them at a high price, and the wiring work along with it.

£3.5k hardly makes the average EV suddenly affordable, but I accept it seems to drive behaviours of those who can afford them. Maybe they aren’t the people who need to be helped with any scheme?

Let’s see what happens.
About time that fossil fuels stood on their own two feet too.

UK has biggest fossil fuel subsidies in the EU, finds commission
 

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Market forces decide prices anyway. If the buying public isn't willing to pay then that's that. The £3500 grant distorts prices and doesn't actually go to the buyer. It's just a bung to the manufacturers. EVs have been around since 2011/2012 so it's time they did stand on their own.
 

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This may well have unintended consequences where ICE sales are strengthened because folk panic buy while they still can get a car that is cheaper than an EV. The cars could l have strong residual values into the secondhand market for similar reasons. It will take road pollution tolls to make folk switch.
 

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Great. The second hand value of our EVs just went up. :devilish:
Yes perhaps, but not more than the £3500 incentive so if your expecting a "win" on resale over your new car I think you'll be disappointed.

£3.5k hardly makes the average EV suddenly affordable
Does to me, if it wasn't for the £3500 and then MG matching it I couldn't afford to trade up to a new car.



I for one hope this is just fear mongering. I also hope as I reserved my car in 2019 and its taken until now to be delivered that i'll still qualify for the grant.
 

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Although it won't kill the EV market, it will mean less people will be able to purchase a new EV and second hand prices will rise due to supply and demand, again meaning less people being able to afford them. Pretty much negates the BIK 0% on April the 1st as well.
 

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This looks like the usual rumours ahead of a budget designed to guage the response and adjust the budget as necessary.

However Grant Shapps stated last September that the government wanted to scrap the PICG and the likelhood of this happening this year was mooted by George Freeman, the Future of Transport Minister, earlier this month. From his comments, it seems the government don't think that the grant is necessary as there has been a 204% increase in EV sales in January this year. I suspect that they missed the point that they were all PHEVs being bought because of the BIK rules.

Or it could be Boris aping his mentor Trump's equivalent grant removal in the States.
 

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On a £20,000 car there is 20% VAT, £4,000, so the government still gets an effective £500 VAT payment, just not so much as without the grant. What will the budget on 11th March bring?
 

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I doubt if the Auto Express knows any more than the rest of us !

No doubt the current position is that the scheme has been authorised for this financial year and whether or not it or a similar scheme will apply to the next financial year will be announced in the budget.

But what actually happens to prices when such a scheme is introduced or withdrawn ? I suspect that manufacturers simply adjust their RRPs to reap a windfall benefit rather than buyers really getting any benefit.
 

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Reasonable?
Should we not be paying more for "bad" things & less for "good" things, taxation can be a means to encourage this
Can’t simply increase tax on fossil fuel while alternatives are not available
Cheap alternative to attractive ppl move toward those and higher tax to push away ppl from “bad” thing
Transport is more a everyday life essentials than luxury especially when UK have a very poor public transport development outside the major cities
 
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