Motorists have been told they will start enjoying electric car discounts at dealerships “within weeks” after the introduction of new Labour plug-in grants. However, experts warn that most electric cars “won’t qualify” for savings as only brand-new vehicles priced under £37,000 will have fees cut.
With more than two-thirds of electric vehicles on the market priced over £40,000, experts have already started questioning the effectiveness of the new scheme from Labour. Meanwhile, the new grants of up to £3,750 on a brand new car could lead to a surge in demand for cheaper models priced just below the threshold. The new £650 million grant scheme comes just three years since the Conservatives’ previous plug-in grant was axed back in 2022.
Steve Walker, Head of Digital Content at Auto Express, stressed that the prospect of Government assistance to help families afford new EVs would be welcomed across the industry.
However, he queried the impact of the scheme as he stressed dozens of new electric models would not be liable for savings. The £37,000 cut-off means top EVs such as new models from Tesla and Polestar will not have prices cut.
He explained: “Around 70% of new EVs cost more than £40,000, yet the new grant of up to £3,750 is only available at the point of sale for cars priced at or under £37,000, meaning most models won’t qualify.”
Despite the news, experts at the RAC were encouraged by the news with specialists admitting drivers would start seeing the changes sooner rather than later.
It is hoped the cheaper prices encourage private buyers to finally make the transition to electric vehicles in the same way many businesses have embraced the new technology.
RAC head of policy Simon Williams said: “Three years after the arguably premature end of the plug-in car grant, this new scheme could be just the shot-in-the-arm needed to help more drivers go electric.
“Within weeks, discounted cars should start appearing at dealerships across the country. And, as the biggest savings will be given to cars with the strongest ‘green’ manufacturing credentials, drivers will be picking models that are not only better for their wallets, but better for the planet too.”
