Electric Car Grant - 2025

[andburg]

So up to 3750 off EVs up to £37000 list price
Band one cars - £3750 off
Band two cars - up to £1500 off

Criteria not yet announced but based on emissions of production apparently.

Another kick in the teeth for the used EV market.
do we think we'll see the current new best deals drop by the full amount or will manufacturers pocket some of that reduction?

[Frimley111R]

All grants are political.

No-one bought a new EV because the govt gave them a few grand off. No-one bought a new EV because the govt gave them a few hundred off a home charger, no business installed chargers because the govt also gave them a few hundred off the cost of each one.

It's a huge waste of money the government don't have.

And it'll have zero impact on used EVs.

[Tophatron]

Daft to bring this in now - I suspect the manufacturers will adjust prices accordingly and the public won't get to see much of the grant in reality.

What they should have done is raised the "Expensive Car" RFL supplement threshold to £60k or higher.

[andburg]

somebody at work was talking about the MG S5 and that you can currently get brand new standard range SE models for under £22k so if the full grant were available AND passed on that'd be £18000 for a brand new EV.

Over 5 years that's £262 a month at 6%on a mid market loan and leaves you with 2 years warranty. A 4 year old ZS standard range is currently about £13k with only 3 years warranty left, as most people these days are resigned to always having a monthly payment that's approx £100 a month less for a brand new car assuming 3 years loan on the ZS and the S5 being kept full term as you'd be in negative equity for a long time.

[phil4]

I think it'll change a few people's minds who were on the fence... but by and large it's not going to make an expensive car cheap, and if you've already got the reasons not to go EV in your head, it won't change those.

As suggested I expect most of it'll be swallowed up, and the customer will get very little.

I guess it's all just to try and say the govt support EV's despite adding back the VED and expensive car taxes. Give in one hand, take away with the other... and pretend you're pro.

[Frimley111R]

Just to add here, manufacturers don't swallow the grant, it's just like a discount they are all given. They don't stick prices up £3500. It's good for them as it helps them sell cars but it's not some golden ticket to making money. Same for EV charging grants (now only for commercial locations), all suppliers had the same grant so there's no competitive advantage or way of making more profit.

[Frimley111R]

Now being discussed here: https://www.pistonheads.com/gassing/topic.asp?h=0&...

[kambites]

Frimley111R said:

Just to add here, manufacturers don't swallow the grant, it's just like a discount they are all given. They don't stick prices up £3500. It's good for them as it helps them sell cars but it's not some golden ticket to making money. Same for EV charging grants (now only for commercial locations), all suppliers had the same grant so there's no competitive advantage or way of making more profit.

I think there will be a bit of both. The current EV market is skewed by manufacturers trying to meet their ZEV mandate quota - many EVs are even being sold at a loss to avoid the bigger loss of having to pay the fines. The grant will make EVs more competitive compared to ICE vehicles, which will (presumably) increase sales, which will make it easier to hit the mandated percentage figures which will in turn allow manufacturers to push their prices up a bit without paying huge fines.

I don't think we'll see RRPs rise as a result of the grant, but I think we'll see slightly less discounting.

[TheDrownedApe]

I'm due another SS lease in March. I assume it will still be cheaper for me to lease at the end of the FY rather than PCP one privately as i want one with >250bhp

[S600BSB]

phil4 said:

I think it'll change a few people's minds who were on the fence... but by and large it's not going to make an expensive car cheap, and if you've already got the reasons not to go EV in your head, it won't change those.

As suggested I expect most of it'll be swallowed up, and the customer will get very little.

I guess it's all just to try and say the govt support EV's despite adding back the VED and expensive car taxes. Give in one hand, take away with the other... and pretend you're pro.

I think it’s good news - and will now order a Renault 5!

[Tophatron]

kambites said:

I think there will be a bit of both. The current EV market is skewed by manufacturers trying to meet their ZEV mandate quota - many EVs are even being sold at a loss to avoid the bigger loss of having to pay the fines. The grant will make EVs more competitive compared to ICE vehicles, which will (presumably) increase sales, which will make it easier to hit the mandated percentage figures which will in turn allow manufacturers to push their prices up a bit without paying huge fines.

I don't think we'll see RRPs rise as a result of the grant, but I think we'll see slightly less discounting.

Yep - if the market dictates a manufacturer has to discount a particular EV by £8k for it to sell, they'll probably just make the discount £5k and trouser the extra grant. Joe Public will see no tangible difference.

I do wonder if popular stuff like the Renault 5 will see a price hike, depending on if the grant applies.

[NH-0]

Great, so collectively we have to pay for someone to get a discount on their brand new EV, probably due to lobbying.

[Frimley111R]

NH-0 said:

Great, so collectively we have to pay for someone to get a discount on their brand new EV, probably due to lobbying.

Yup. Taxpayers money going to help people buy very expensive luxury items. Thank god the NHS, armed forces, Police don't need any more money.

[drgoatboy]

Frimley111R said:

Just to add here, manufacturers don't swallow the grant, it's just like a discount they are all given. They don't stick prices up £3500. It's good for them as it helps them sell cars but it's not some golden ticket to making money. Same for EV charging grants (now only for commercial locations), all suppliers had the same grant so there's no competitive advantage or way of making more profit.

But what's bad for them is you now have to finance less money (assuming discounts don't change) so they will make less money in interest.
Now arguably cash now is better than cash later but still it's a potential hit to the bottom line.

Personally I think cash prices will drop but PCP rates will be less impacted as they will tweak interest rates to account for it. But time will tell...

[Dewi 2]

Offer a good product of any type, at an attractive price and there will be demand.

For many months, the motor industry trade association SMMT, have been demanding that the government must give money to EV buyers.
A quick search of Autotrader, clearly reveals that a huge number of new EVs are being pre-registered, because that gives the appearance in the publiehed monthly figures of sales. Those cars, some of which are now 3 years old and still for sale, gradually have their asking prices reduced. Beware, because not adhering to manufactures servicing schedule means the battery warranty becomes invalid.

Interesting how the government has attempted to exclude low-cost Chinese EVs from their new discount scheme. Have they now actually understood the threat to western car manufacturers?

[oldmanbm]

My ex-employers (Local Governement) once gave groups a £200 grant to help with transport costs. Simples: The cost of a coach previously £400 rose to £600. I fear that this will be the same.

[DMZ]

kambites said:

I think there will be a bit of both. The current EV market is skewed by manufacturers trying to meet their ZEV mandate quota - many EVs are even being sold at a loss to avoid the bigger loss of having to pay the fines. The grant will make EVs more competitive compared to ICE vehicles, which will (presumably) increase sales, which will make it easier to hit the mandated percentage figures which will in turn allow manufacturers to push their prices up a bit without paying huge fines.

I don't think we'll see RRPs rise as a result of the grant, but I think we'll see slightly less discounting.

You’d wonder why the grant has been introduced or why there are BIK benefits for that matter. Just let the mandate do its thing, that’s what it’s there for surely. It’s a lot better if manufacturers need to discount or disincentivise ICE with higher prices than tax payers paying for the discount. Not that I mind credits and grants but I don’t see how it makes sense for the government.

[mycool]

interesting comment when asking the company who do out salary sacrifice scheme about when prices would reflect the grant....
they pointed out that if they sell out of a specific model then lead times and prices will increase which could make the price with the subsidy the same as today or even higher.

So this might be how schemes and manufacturers maintain margins.

[Ankh87]

If you can afford to buy a new car of any kind then you won't be pushed to an EV because of a grant. You'll buy a car that you want and if that is an EV then cool you bought a new EV and probably paid more because the price went up as much as the grant did.

[Alex Z]

Ankh87 said:

If you can afford to buy a new car of any kind then you won't be pushed to an EV because of a grant. You'll buy a car that you want and if that is an EV then cool you bought a new EV and probably paid more because the price went up as much as the grant did.

Not really, no.

We quite fancy a Renault 5 EV but aren't desperate to buy. A grant towards it could tip us over the edge into "why the hell not" territory, and I know what the list price is today so I think I'll notice if they mysteriously add a few £K and then apply a discount to that.