Will EV grant filter through to APs?

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  • #309589
    Avatar photoBandit
    Participant

      Reading the.gov site it appears it’s the manufacturer that applies etc and therefore discounts at the top level? So, presumably, that should be able to be passed on to bulk buyers like MB (and other lease fleet operators)? Of course there is the possibility that MB might just use it to offset any losses they’re making on EVs at the moment.

      I didn’t read in detail and know there are plenty on here that will and be able to highlight the minutiae! 😄

    Viewing 25 replies - 1 through 25 (of 39 total)
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    • #309593
      kezo
      Participant

        Supporting the manifesto commitment to phase out the sale of new petrol and diesel cars by 2030, the £650 million Electric Car Grant (ECG) will back UK and other manufacturers, with eligibility dependent on the highest manufacturing sustainability standards. Discounts up to £3,750 will be available at the point of sale for new eligible electric cars priced at or under £37,000.

        Drivers will start to benefit from discounts as soon as manufacturers successfully apply for their zero emission cars to be part of the grant scheme from 16 July 2025, with funding available until the 2028 to 2029 financial year.

        With drivers citing upfront costs as a key barrier to adoption, the grant will narrow the upfront cost between petrol and electric vehicles, giving thousands more drivers access to savings of up to £1,500 a year in fuel and running costs compared to a petrol car. The discount means that zero emission cars are now cheaper to buy and run than ever before and comes on top of preferential tax rates, delivering real savings for working families.  

        Owning and buying an electric vehicle (EV) is becoming cheaper, with 2 in 5 of used electric cars sold at under £20,000 and 33 brand new electric cars available from under £30,000.

        https://www.gov.uk/government/news/discount-of-up-to-3750-on-electric-cars-set-to-slash-costs-for-thousands

        To me, it sounds as if it’s ained towards private buyers, buying a £37,500 or below car,with a maximum discount of 10% off.

        #309594
        Glos Guy
        Participant

          I’ve not read the detail as it doesn’t interest me, but such discounts are usually only for private buyers. Company car EV drivers are effectively already incentivised through the benefit in kind taxation system. If anything, it could result in even bigger hits to used EV values, which would adversely affect Motability, rather than help them!

          #309604
          Avatar photoBandit
          Participant

            Only time will tell I guess. However, asking Google AI “Will motability customers be able to claim the ev grant from 16th july?” produced the following, so there’s still hope!

            Yes, Motability customers will be able to benefit from the new Electric Car Grant, starting July 16th, 2025. This grant offers discounts of up to £3,750 on new, eligible electric vehicles, and the discounts will be applied directly at the point of sale. Car manufacturers will be able to apply to include their vehicles in the scheme from July 16th.

            Here’s a more detailed explanation:

            New Grant:

            The UK government has reintroduced a grant scheme to encourage the adoption of electric vehicles, offering discounts of up to £3,750 on eligible new EVs.

            Eligibility:

            The grant applies to new electric vehicles priced at or below £37,000.

            Application:

            Car manufacturers will be able to apply to include their eligible vehicles in the scheme from July 16th.

            Direct Discount:

            The discount will be applied directly at the point of sale by the manufacturer or dealer, meaning Motability customers won’t need to apply for the grant separately.

            Motability Scheme:

            The Motability scheme allows eligible individuals to lease a new vehicle by exchanging their mobility allowance. The new grant will be beneficial to those using the scheme to lease an electric vehicle.

            Cost Savings:

            The grant is designed to make electric vehicles more affordable, potentially saving customers thousands of pounds on the upfront cost of a new EV.

            #309613
            Glos Guy
            Participant

              I think that AI response is a bit questionable, not least because as Motability customers we do not buy the cars! Also, many sub £37k EVs probably have APs that are less than the value of the grant, so how would that work?

              IF Motability Operations get the discount then I should think that manufacturers will simply reduce the discounts that they are currently offering to them. If you recall, this happened in reverse when the last lot of grants were pulled. Manufacturers dropped their prices to offset.

              This is just one of the reasons why I don’t agree with taxpayer funded subsidies. The money often doesn’t benefit the intended audience. It’s a bit like ‘Help to Buy’. All that did was reduce the discounts that house builders were offering thus helping the builders more than the consumers. It became known in the industry as ‘Help to Buy Housebuilders yachts’!

              Always far better to leave it to the market to decide what sells and what doesn’t. That would force manufacturers to reduce prices or force the government to revise their unrealistic targets.

              #309635
              Avatar photoFalcon1
              Participant

                I dont think so. I think it’s to encourage private buyers with the typically higher costs than motability customers have. I think some of the higher APs we are experiencing in EV’s of late’s that someone has to bear the cost for the higher car tax rates and for many EV’s the luxury car tax.

                 

                2024 Skoda Enyaq estate- 85x Sportline plus in Race Blue. Extras: Supernova 21 inch wheels, Maxx Pack, Transport Pack, Heat Pump and Pano Sunroof.
                Ordered 31/10/23, Delivery 27/3/24

                #309636
                Glos Guy
                Participant

                  Further to my comment earlier about the potential adverse impact of these grants on residual values, a sector specialist who is very pro EVs has just been interviewed on Sky News Business programme. Whilst he cautiously welcomed the grants, he said that residual values for 2 year old EVs had dropped from 78% to 46% in just 18 months, and there was some concern that this might make the problem even worse.

                  I wonder how many private buyers who might be swayed by this offer are aware of the depreciation hit that they could be facing, which could wipe out the grant saving several times over?

                  #309641
                  kezo
                  Participant

                    Further to my comment earlier about the potential adverse impact of these grants on residual values, a sector specialist who is very pro EVs has just been interviewed on Sky News Business programme. Whilst he cautiously welcomed the grants, he said that residual values for 2 year old EVs had dropped from 78% to 46% in just 18 months, and there was some concern that this might make the problem even worse. I wonder how many private buyers who might be swayed by this offer are aware of the depreciation hit that they could be facing, which could wipe out the grant saving several times over?

                    Personally, I don’t this offer s enough to tempt private buyers anyway.

                    Migration should be allowed to happen naturaly and not by the government dangling carrots. It won’t worl for a starters!

                    #309671
                    MFillingham
                    Participant

                      The government have messed up again.  The biggest concern all new buyers are voicing is depreciation.  People won’t accept losing 70% value in 3 years.  The ONLY way to improve that value is to convince purchasers of 3 year old cars to buy electric.  Without convincing these people the demand will always be insufficient and there’s no legislating for their choices.  IF 2035 sees no more ICE  on sale, these people will still have the ability to buy ICE until nearly 2040 if they relax on the age of car they buy.

                       

                      Reassuring the public on servicing costs, reliability and trying to ensure that battery failures aren’t happening in their ownership times are the only realistic way to get the demand lifting.

                      I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
                      I'll try to give my honest opinion but am always open to learning.

                      Mark

                      #311176
                      Avatar photoBandit
                      Participant

                        I believe quite a few models go live (as it were) today on the grant scheme. I’m not in anyway saying this will have a bearing on APs, merely highlighting an occurrence within the subject!

                        #311185
                        Glos Guy
                        Participant

                          I believe quite a few models go live (as it were) today on the grant scheme. I’m not in anyway saying this will have a bearing on APs, merely highlighting an occurrence within the subject!

                          I‘ve not read them in full, as I’m not in the market for an EV, but a number of articles have been highlighting how few cars actually fulfil the rather complex qualifying criteria!

                          #311189
                          Rene
                          Participant

                            I believe quite a few models go live (as it were) today on the grant scheme. I’m not in anyway saying this will have a bearing on APs, merely highlighting an occurrence within the subject!

                            I‘ve not read them in full, as I’m not in the market for an EV, but a number of articles have been highlighting how few cars actually fulfil the rather complex qualifying criteria!

                            While true, most manufacturers now offer their own “grant”, or rather, reduce prices by £1500-£3000.

                            Not that that would have an impact on fleet sales though, but alas.

                            Prior: SEAT Ateca Xcellence Lux 1.5 TSI DSG MY19, VW Golf GTE PHEV DSG MY23
                            Current: Hyundai Ioniq 6 Ultimate
                            Next: we'll see what's available in 2028.

                            #311219
                            kdwolf
                            Participant

                              It’s the usual approach: fanfares about £650M allocated to green companies and in reality – total nothing.  Skoda won’t qualify for Band 1,  but made in Europe, whilst Chinese vehicles,  heavily subsidised by their government will?

                              Either way,  the official list as of yesterday morning at least has only Band 2 vehicles on the list.

                              Sent from a mobile device.
                              Apologies for briefness and spelling mistakes.

                              Motability Skoda Enyaq SportLine 85x April 2024 (unhappy customer - Ombudsman pending)
                              Motability Mazda CX-60 July 2023 (unhappy customer - early termination on mechanical grounds)
                              Motability VW Touran Family Pack May 2019 (happy customer)

                              #311220
                              Glos Guy
                              Participant

                                Here’s the (very small) list of vehicles that qualify, plus the EVs that manufacturers are offering their own discounts on. Obviously there’s zero guarantee that any of this will result in lower APs, as Motability will already be receiving discounts way in excess of these levels;

                                https://www.fleetnews.co.uk/news/electric-car-grant-which-models-qualify

                                #311226
                                Rene
                                Participant

                                  Completely pointless lol.

                                  The only thing that might have an impact is things like the new, grant-specific trim on the Ariya called “Shiro”. Created to fall below the threshold, it’s an Ariya for £33k (6k less than the original cheapest model).

                                  If it comes to the scheme, it’d be substantially cheaper than the current variants. Not that i’d ever want one, but.. gotta look at the very tiny bright side, i guess.

                                  Prior: SEAT Ateca Xcellence Lux 1.5 TSI DSG MY19, VW Golf GTE PHEV DSG MY23
                                  Current: Hyundai Ioniq 6 Ultimate
                                  Next: we'll see what's available in 2028.

                                  #311227
                                  kezo
                                  Participant

                                    It’s the usual approach: fanfares about £650M allocated to green companies and in reality – total nothing. Skoda won’t qualify for Band 1, but made in Europe, whilst Chinese vehicles, heavily subsidised by their government will? Either way, the official list as of yesterday morning at least has only Band 2 vehicles on the list.

                                    Chinese made electric cars are not expected to qualify for any level of the Electric Car Grant due to environmental standards, particularly China’s reliance on coal powered electricity for manufacturing, pollution from mining, though they remain world leader in renewables and don’t put all their eggs in one basket like Millibrain.

                                    My own view, is that China’s EV manufacturers should be included, if only in band 2, because without China’s polution, europe wouldn’t be breathing cleaner air from EV’s & solar!

                                    #311235
                                    kdwolf
                                    Participant

                                      It’s the usual approach: fanfares about £650M allocated to green companies and in reality – total nothing. Skoda won’t qualify for Band 1, but made in Europe, whilst Chinese vehicles, heavily subsidised by their government will? Either way, the official list as of yesterday morning at least has only Band 2 vehicles on the list.

                                      Chinese made electric cars are not expected to qualify for any level of the Electric Car Grant due to environmental standards, particularly China’s reliance on coal powered electricity for manufacturing, pollution from mining, though they remain world leader in renewables and don’t put all their eggs in one basket like Millibrain. My own view, is that China’s EV manufacturers should be included, if only in band 2, because without China’s polution, europe wouldn’t be breathing cleaner air from EV’s & solar!

                                      It will be interesting to see if the likes of Mini EV made in China will qualify.

                                      As to your pollution remark,  following Francis Urquhart style,  “You might very well think that; I couldn’t possibly comment “.

                                       

                                      Sent from a mobile device.
                                      Apologies for briefness and spelling mistakes.

                                      Motability Skoda Enyaq SportLine 85x April 2024 (unhappy customer - Ombudsman pending)
                                      Motability Mazda CX-60 July 2023 (unhappy customer - early termination on mechanical grounds)
                                      Motability VW Touran Family Pack May 2019 (happy customer)

                                      #311237
                                      Rene
                                      Participant

                                        My own view, is that China’s EV manufacturers should be included, if only in band 2, because without China’s polution, europe wouldn’t be breathing cleaner air from EV’s & solar!

                                        That’s.. debatable.

                                        Now, i don’t think the grant should be restricted the way it is (in fact i don’t think it should exist at all in this form), but china doesn’t pollute for us to be able to run EVs/solar. China polutes because they have quite a few people that require resources. In fact, they’re cleaner now than before the EV boom.

                                         

                                        Prior: SEAT Ateca Xcellence Lux 1.5 TSI DSG MY19, VW Golf GTE PHEV DSG MY23
                                        Current: Hyundai Ioniq 6 Ultimate
                                        Next: we'll see what's available in 2028.

                                        #311279
                                        Avatar photoBandit
                                        Participant

                                          Well the new Ariya Shiro (which from what I gather they’ve just come up with as part of their repricing for the grant scheme)) has now come on at zero but the extended range Ariya Engage has dropped to zero as well, so maybe there might be some benefit for us?

                                          #311283
                                          MFillingham
                                          Participant

                                            It looks like the Ariya has dropped by £1500 across the board.  I haven’t the opportunity to check all prices but the Engage was £5495 and is £3999.

                                            I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
                                            I'll try to give my honest opinion but am always open to learning.

                                            Mark

                                            #311290
                                            mitch
                                            Participant

                                              nissan have put the shiro on at the bottom end of their ariya range just to qualify for the grant and apparently they are going to do it for all their ranges once its confirmed by the powers that be.

                                              i like the ariyas cabin i may take another look as the range is good and  the ap on wpms is in my range.

                                               

                                              #311292
                                              mitch
                                              Participant

                                                as i dont like bings and bongs my initial choice would be the engage at 0ap and 79.95 a week. however some would be nice to haves are in a pack which costs £1295.00 comfort pack electric seats heated this and that etc.

                                                wheras the advance has all that and more unfortunately lots of bings and bongs for £627 ap and total allowance.

                                                i like the green colour. wish there was a light interior.

                                                it is a nice place to sit.

                                                pity i cant charge at home. heyho.

                                                 

                                                #311316
                                                Mike
                                                Participant

                                                  Motability have posted an article about the grant on their website.

                                                  Link https://news.motability.co.uk/scheme-news/what-does-the-electric-car-grant-mean-for-me/

                                                  Looks like they are leaving it to manufacturers to make any offers in the next quarter from a cursory read.

                                                  #311317
                                                  kdwolf
                                                  Participant

                                                    Motability have posted an article about the grant on their website. Link https://news.motability.co.uk/scheme-news/what-does-the-electric-car-grant-mean-for-me/ Looks like they are leaving it to manufacturers to make any offers in the next quarter from a cursory read.

                                                    More like a marketing pitch with calls for action: click here to view or click there to order…

                                                    Sent from a mobile device.
                                                    Apologies for briefness and spelling mistakes.

                                                    Motability Skoda Enyaq SportLine 85x April 2024 (unhappy customer - Ombudsman pending)
                                                    Motability Mazda CX-60 July 2023 (unhappy customer - early termination on mechanical grounds)
                                                    Motability VW Touran Family Pack May 2019 (happy customer)

                                                    #311318
                                                    Glos Guy
                                                    Participant

                                                      Motability have posted an article about the grant on their website. Link https://news.motability.co.uk/scheme-news/what-does-the-electric-car-grant-mean-for-me/ Looks like they are leaving it to manufacturers to make any offers in the next quarter from a cursory read.

                                                      Exactly as I thought. The two key quotes from the article are;

                                                      If a car qualifies and it’s available on the Motability Scheme, it’s up to the manufacturer to decide if they want to change the Advance Payment. 

                                                      and

                                                      If a car becomes eligible for the grant, it will not necessarily mean the Advance Payment will change. This is subject to the manufacturer’s discretion. In many cases, as we update our prices every three months, the best possible deals have already been applied for Scheme customers and won’t change until they are reviewed again next quarter

                                                      #311323
                                                      Avatar photoBandit
                                                      Participant

                                                        Well at least we have a bargaining point if the car is on the list, as in “apply the grant to the ap or I’m off elsewhere” and also hope that come October we see some blanket reductions.

                                                         

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