OLEV grant scrapped for cars over £50k

[XJR500bhp]

[Dave Hedgehog]

but they also no longer pay the luxury VED tax

[Marlin45]

So no plug in car grant for Tesla, Jag...................?

[sjg]

Makes sense to drop the grant for >£50k cars. The money will get really stretched in the coming year or so with so many EV sales, I'd rather the grant stays high for cheaper humdrum stuff and those who can afford a Taycan or eTron or iPace pay full price, rather than the grant getting cut more at a flat rate for all.

Don't object to the luxury tax in principle, but it's a pointlessly overcomplicated system. Better to just tax at the time of sale instead IMO.

[aestetix1]

Good. It made no sense on luxury cars, the point was to encourage wider take-up of EVs not to subsidise people who already have plenty of money.

[ds666]

I quite agree .
I do suspect that the manufacturers baked in the grant to their pricing anyway i.e. added the grant to the list price , so they will be no worse off .

[ChocolateFrog]

It's about time.

If you can afford a new Model S or Etron or whatever you shouldn't really be raiding the public coffers for a few quid off.

Makes sense to me, although I'd imagine more than 90% of the grants as well as the subsidies for home chargers and the like have gone to middle class families.

[Fastlane]

Makes the Tesla Model 3 SR+ look much better value now - no Luxury Car tax and a £3k grant...

[Durzel]

Yeah it's tough to argue against the logic of it. The takeup of Teslas and Taycans isn't exactly what one has in mind when you think about getting your regular guy on the street out of their ICE car into an EV.

[Rob-s5mok]

Just glad my iPace was delivered 7 days ago

[jamoor]

Fastlane said:

Makes the Tesla Model 3 SR+ look much better value now - no Luxury Car tax and a £3k grant...

£300 pays for half of my annual fuel bill.

I will take it!

[mrkipling]

Sudden change to this with effect from Thursday 18th March. Grant cut to £2500 and now only available on vehicles up to 35k.

[Muddle238]

mrkipling said:

Sudden change to this with effect from Thursday 18th March. Grant cut to £2500 and now only available on vehicles up to 35k.

I guess anywhere they can save cash given the amount of spending in the last 12 months.

[Moonpie21]

mrkipling said:

Sudden change to this with effect from Thursday 18th March. Grant cut to £2500 and now only available on vehicles up to 35k.

I've been wondering about this. I saw an article that listed all the electric cars under £35k on sale (24) that still qualified and checking the UK government website they have 36 listed (but that includes variants). Now none of these are "cheap" compared to what is available as a similar size and spec for ICE, but they are at least heading in the right direction. It seems to be getting cheaper to produce an electric car.

This got me thinking about the BMW I3... it's been around a good long time, they must be considering a replacement and surely they must have recovered a large amount of their development costs due to popularity and technology tested in it finding it's way in to other models. Given how close it is to still being on the government grant list, do you think BMW would/should cut the price to still make the model qualify?

[aestetix1]

Muddle238 said:

I guess anywhere they can save cash given the amount of spending in the last 12 months.

Just imagine how that £37 billion pissed away on Test & Trace could have transformed the landscape for EVs and boosted our economy in the process...

Lots of money available, but only for Tory chums.

[anonymous-user]

They’re not saving cash, the budget remains the same it’s just being directed to the lower end of the market as sales increase.