Staggered to report that the Government has cut the plug In grant to £1,500 (from £2,500) for cars costing £32,000 (down from £35,000) or less with immediate effect.
We’ve posted three times in recent weeks about the need to keep the pressure up to get people to switch to EV cars. Only around 1% of 31.7m cars on the road in the UK are EV as of now.
Remember there are a number of significant tax incentives for businesses to take EVs, but the grant is the main incentive for retail customers.
To reiterate a point HRUX made the last time this happened, HMG don’t give money back when you buy a new car. The grant, where applicable, effectively just offsets the VAT.
For a car costing, say £35k which got a grant of £2,500, the “net” payment (VAT £5,833 less grant £2,500) to HMG was STILL £3,333. From 7am yesterday it rose to £5,855.
We would argue that nothing makes a 8 year old diesel (which is how old the average one is in the UK) look more attractive than slapping £5,855 (up 75% from two days ago) on the price of an EV replacement.