Government axes PiCG

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Discussion

MrB.

Original Poster:

570 posts

187 months

Tuesday 14th June 2022
quotequote all
In the news today - https://www.autocar.co.uk/car-news/consumer/uk-gov...

Nice that they give plenty of notice, especially to those of you who have a car on order. You'll need to find another £1,500 down the back of the sofa!

Quick question though, for future buyers, does this move put you off buying a new EV? Does it make you rethink the choice of model or trim level you have decided on?

delta0

2,355 posts

107 months

Tuesday 14th June 2022
quotequote all
Only a very limited number of cars were eligible for this. Other countries have done the same like France.

aestetix1

868 posts

52 months

Tuesday 14th June 2022
quotequote all
Hopefully affected manufacturers will drop their prices by £1,500.

MrB.

Original Poster:

570 posts

187 months

Tuesday 14th June 2022
quotequote all
delta0 said:
Only a very limited number of cars were eligible for this. Other countries have done the same like France.
Oh I know, and personally I think that enough EVs are selling now that it isn't really necessary. I do agree that manufacturers should be starting to look at lowering the prices though.

ajap1979

8,014 posts

188 months

Tuesday 14th June 2022
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Assume this is only applicable to new car orders from today?

SWoll

18,455 posts

259 months

Tuesday 14th June 2022
quotequote all
aestetix1 said:
Hopefully affected manufacturers will drop their prices by £1,500.
You're already talking about the bottom end of the market, and with current production issues and waiting lists on most EV's I don't see why they would TBH?

Heartworm

1,923 posts

162 months

Tuesday 14th June 2022
quotequote all
ajap1979 said:
Assume this is only applicable to new car orders from today?
New deliveries by the sound of it,

sjg

7,455 posts

266 months

Tuesday 14th June 2022
quotequote all
MrB. said:
Nice that they give plenty of notice, especially to those of you who have a car on order. You'll need to find another £1,500 down the back of the sofa!
You get the grant that was in effect at the time of order. Dealers register the sale on a government portal (because they claim the grant, not the customer) and they get a couple of days grace to catch up and register any sales made before the change date. Customer should never be asked to pay more than they signed up to.

Note PiCG remains for motorbikes and commercial vehicles.

I was expecting a gentler tapering off (and I'd have liked to see one remain for say sub-£25k cars) but I suspect the grant is largely irrelevant at this point. Most EVs sold this year are not grant eligible (>£32k) and for those who can afford to buy a new one a £1500 grant won't make much difference. Demand and lead times are crazy anyway, manufacturers have no incentive to sell cheap cars while there are people willing to buy the higher spec, higher margin ones.

Silvanus

5,272 posts

24 months

Tuesday 14th June 2022
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About time too

ajap1979

8,014 posts

188 months

Tuesday 14th June 2022
quotequote all
Heartworm said:
ajap1979 said:
Assume this is only applicable to new car orders from today?
New deliveries by the sound of it,
I thought the manufacturer applied for the grant at the time of order...

Mr Hoops

69 posts

155 months

Tuesday 14th June 2022
quotequote all
Tax incentives were a far greater factor in our decision to order an EV. The saving in corporate tax this year is 5x times the value of the grant.

bigothunter

11,313 posts

61 months

Tuesday 14th June 2022
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With record petrol and diesel prices, there's sufficient incentive to buy an EV without giving away £1500 every time.

bigothunter

11,313 posts

61 months

Tuesday 14th June 2022
quotequote all
aestetix1 said:
Hopefully affected manufacturers will drop their prices by £1,500.
You cannot be serious laugh

Amateurish

7,755 posts

223 months

Tuesday 14th June 2022
quotequote all
delta0 said:
Only a very limited number of cars were eligible for this. Other countries have done the same like France.
You can still get a €5k grant in France.

Amateurish

7,755 posts

223 months

Tuesday 14th June 2022
quotequote all
bigothunter said:
With record petrol and diesel prices, there's sufficient incentive to buy an EV without giving away £1500 every time.
Agreed. The ev grant had served its purpose.

bigothunter

11,313 posts

61 months

Tuesday 14th June 2022
quotequote all
Amateurish said:
You can still get a €5k grant in France.
French tax burden is higher but I suspect UK is catching up fast.

TheDeuce

21,772 posts

67 months

Tuesday 14th June 2022
quotequote all
Peoplr are queing up to buy EV's at a far greater rate than ever expected - the waiting time is now about a year for many of them.

Why on earth would the government continue to pay to incentivise people to do anything when the queue is already out of the door and around the block and the supply can't meet demand anyway confused

The UK government can't seem to get much right these days, but the push to get people thinking electric is a box they can finally tick. Even if Elon Musk probably did most of the work rofl

HTP99

22,600 posts

141 months

Tuesday 14th June 2022
quotequote all
bigothunter said:
aestetix1 said:
Hopefully affected manufacturers will drop their prices by £1,500.
You cannot be serious laugh
Renault did on the ZOE a few years back when the grant went down, I can't remember the amount but they dropped the OTR in line with then PIGC drop.

Orders pre this latest announcement will be fine as long as the neccesary process has been completed by the dealer properly, if not it will be on them, (I wonder how many I'll learn of, which my admin department haven't processed, when I'm back in tomorrow morning after my day off today!)

Edited by HTP99 on Tuesday 14th June 23:02

Evanivitch

20,151 posts

123 months

Tuesday 14th June 2022
quotequote all
bigothunter said:
aestetix1 said:
Hopefully affected manufacturers will drop their prices by £1,500.
You cannot be serious laugh
Several manufacturers lowered prices to achieve the previous grant threshold.

But I can't see them reducing the price when there's no carrot for them to do so.

bigothunter

11,313 posts

61 months

Tuesday 14th June 2022
quotequote all
Evanivitch said:
bigothunter said:
aestetix1 said:
Hopefully affected manufacturers will drop their prices by £1,500.
You cannot be serious laugh
Several manufacturers lowered prices to achieve the previous grant threshold.

But I can't see them reducing the price when there's no carrot for them to do so.
Manufacturers will reduce prices if EV supply exceeds customer demand. It doesn't...