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Observation
Just looked to see what the AP of BYD were
Lol how on earth can they justify that kind of money when you look at the cars actual selling cost
I expect there are a few more jokers like this that could be added to the list
Thoughts on other High APs?
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in the real world luxury car tax is another stumbling block for EV’s which cost upwards of £15k more than their closest petrol version. As Aygo1991 mentioned, it was the previous government who was responsible for its implentation.
As GG said it won’t make a difference to Motability.
Isn’t the £40k+ ‘luxury’ tax simply an additional rate of road tax (VED) for the first 5 years? If so, any inclusion of EVs won’t make the slightest bit of difference to the Motability scheme as all Motability cars are exempt anyway.
You are right @Glos Guy, however I wonder how much it will hit residual values. If I was in the market for a second hand car, paying £600 ish a year in road tax, I certainly would avoid. My personal car – outside of the Motability scheme – I’m currently paying £20 road tax a year! 😀
Good point
Isn’t the £40k+ ‘luxury’ tax simply an additional rate of road tax (VED) for the first 5 years? If so, any inclusion of EVs won’t make the slightest bit of difference to the Motability scheme as all Motability cars are exempt anyway.
You are right @Glos Guy, however I wonder how much it will hit residual values. If I was in the market for a second hand car, paying £600 ish a year in road tax, I certainly would avoid. My personal car – outside of the Motability scheme – I’m currently paying £20 road tax a year! 😀
It certainly won’t help. Even with the current exemption, only a very small percentage of private new car buyers are currently purchasing EVs and, as I understand it, there is even less interest in used EVs. I can’t see how the government can possibly stick with the 2030 / 2035 dates, even though they are saying that will (at the moment), but maybe keeping EVs exempt from the luxury tax surcharge might be one of the outcomes of the fast track consultation announced last week. I’m sure that it will be on the list of things that the car manufacturers will push for although, in itself, I don’t think it will make much difference as the current exemption hasn’t moved the dial enough.
I don’t agree with subsidies in any industry, as they are paid for by everyone through taxes and tend to benefit the suppliers far more than customers, but it is clear that the ‘stick’ approach to pushing everyone towards EVs isn’t working, so a ‘carrot’ approach will have to be taken if they have any hope of shifting public opinion.
To keep companies afloat while demand for EVs grows, another insider suggestion is that the government is weighing up whether to reduce fines for manufacturers straying over the mandate’s limit, which is set at 22 per cent of output for 2024.
To keep companies afloat while demand for EVs grows, another insider suggestion is that the government is weighing up whether to reduce fines for manufacturers straying over the mandate’s limit, which is set at 22 per cent of output for 2024.
The government has already pretty much said that this is going to change. They seem to be suggesting that the year by year targets will either go, or not be accompanied by fines, as long as the end result in 2030/35 is achieved. Whilst this would be a short term improvement for manufacturers, it doesn’t address the fact that the 2030/35 deadline remains in cloud cuckoo land territory, as the current and forecasted trajectory of EV take up doesn’t even remotely hit those dates, and they seem to be overlooking the major fact that consumers won’t be forced into buying something that isn’t suitable for them. The average age of cars on our roads is already 10 years old, and I can see that rising as the deadline looms, hence why it will have to change as new car sales will slow, which will fly against the governments stated number one priority of driving growth. Considering that Rachel Reeves tells everyone that she was (allegedly) an economist and got a masters degree in economics, it’s amazing how they don’t seem to be able to join the dots. I only managed an A level in economics, yet I can shoot boulders, never mind peas, through the holes in their disjointed and conflicting strategies 🤔😂
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