Electric cars are the future, offering a low-emission way of getting from A to B. Consequently, the government is keen to establish incentives that encourage more people to go out and buy an electric or hybrid vehicle. As such, they introduced the electric car grant, which provided an injection of cash for electric car owners. Up until recently, the grant was £3,000 - and you were eligible for it when buying any plug-in electric vehicle up to the value of £50,000.
However, recent news from the 2021 budget report revealed that the UK government has now slashed the financial incentive package down to £2,500. Not only that, but it's only eligible for vehicles that are up to £35,000 in value. This reduction isn't too alarming considering it follows on from a similar reduction made in March 2020. Before then, the grant was £3,500 and applied to all electric vehicles, before being altered to the £3,000 and £50,000 thresholds that were in effect until a couple of weeks ago. So, there is reason to believe a similar change could take place in twelve months time once more.
Instinctively, this seems like a blow for drivers that are keen to switch to electric vehicles. However, there's a lot to be positive about...
Most electric cars are still within the threshold
Capping the eligibility at cars worth up to £35,000 sounds harsh, but it's actually not a problem for the majority of the population. Most electric vehicles are still well within this threshold, meaning you can easily qualify for a £2,500 grant. At Bridgend Motor Group, we have a plethora of electric cars that are under £35,000, meaning you don't really have much to worry about at all.
In truth, the only people affected by these changes will be individuals looking to buy luxury electric cars. It's believed that anyone who can afford a vehicle over £35,000 doesn't really require any financial incentives. Instead, the government grant is aimed at helping those that want to make a positive switch, but need financial help to do so.
You still make considerable savings
Yes, the electric car grant has been reduced by £500. However, in the grand scheme of things, a £2,500 grant is still very impressive. That's a lot of money that you can save when buying your car, and you will benefit from saving more money in the future on fuel costs. Effectively, you're being paid £2,500 to help make the UK a cleaner place with fewer CO2 emissions. Plus, if the trends continue as they have the last few years, the grant may reduce again next year. So, it makes sense to take advantage of it while you can.
In summary, the electric government grant has been reduced to £2,500 from now until next March. At which time there will be a review, and the grant could either be decreased, increased or remain the same. Still, there's a massive incentive for anyone to go out and switch to electric vehicles. If you're interested in purchasing high-quality used electric cars at exceptional prices, don't hesitate to get in touch with us today.