Ouch! New EV Tax Hits Family Car Buyers Hard
So, you're thinking about a new electric family car in the UK? Hold onto your hats. There's been a big shake-up with Vehicle Excise Duty (VED), and it's hitting a lot of EV buyers where it hurts – right in the wallet. It's like a sneaky "luxury car tax" that nobody really saw coming.
The Electric Car Tax Surprise
Electric cars used to be exempt from VED. Nice, right? Not anymore. Now there's a £10 "showroom tax" upfront, plus the standard £195 yearly rate. But here's the kicker: If your EV costs over £40,000, you'll also get hit with an extra £425 a year – a "luxury car supplement." Initially, this was aimed at fancy petrol and diesel cars, but it’s turned into a major problem for EVs. Apparently, seven out of ten new EVs are over that £40,000 mark, according to Auto Trader. That means EV buyers are three times more likely to pay this extra tax than petrol or diesel drivers. Over five years, that's a whopping £3,100 extra! Honestly, who saw that coming?
The Tesla Tax Backlash
This new tax – some are calling it the "Tesla tax" – has caused quite a stir in the automotive world. Car manufacturers are scrambling to adjust prices on their higher-end models to stay below that £40,000 threshold. Experts like Ginny Buckley from Electrifying.com are pointing out that the £40,000 limit is seriously outdated. She argues that it doesn't take into account the higher base cost of EVs thanks to those expensive batteries. The worry is that this extra cost will put people off buying electric vehicles, which isn't great for the UK's green goals, is it?
Here’s a quick look at a few models and how this tax might affect them:
| Model | Price (approx.) | Key Features | Tax Affected? |
|---|---|---|---|
| Kia e-Niro | £35,000-£40,000+ (depending on spec) | Family SUV, Long Range | Potentially |
| Volkswagen ID.3 | £30,000-£40,000+ (depending on spec) | Family Hatchback | Potentially |
| Tesla Model 3 | £40,000+ | Performance Sedan | Yes |
A Bump in the Road to a Greener Future?
This whole situation really highlights how tricky the switch to electric vehicles can be. The UK wants a greener future, but extra costs like this new tax could seriously slow things down. And the fact that the £40,000 threshold hasn’t been updated to reflect the higher cost of EVs just adds insult to injury. It’ll be interesting to see what impact this has on people's choices and the EV market in general. It's kinda felt like watching a slow-motion trainwreck.
What are your thoughts on this new EV tax? Let's chat in the comments below!
