New & Used EV Prices
Discussion
I think there will be a very interesting resetting of the price point of EVs in the near future assuming the Zero Emissions Vehicle Mandate happens from 1st Jan 2024. The cost of missing their EV sales targets will be draconian (£15k per missed vehicle sale).
For example, if VW sell 100,000 cars in the UK during 2024, but only sell 20,000 EVs, and therefore miss their 22% target, then they'll be presented with a fine of 2,000 x £15k = £30M. That doesn't sound like an appealing place to be in, so I would think they'll be doing all they can to make EVs more attractive to avoid this occurring.
I suppose the other way of looking at it would be to load non-fully electric cars with a premium to offset the fine they'll get
For example, if VW sell 100,000 cars in the UK during 2024, but only sell 20,000 EVs, and therefore miss their 22% target, then they'll be presented with a fine of 2,000 x £15k = £30M. That doesn't sound like an appealing place to be in, so I would think they'll be doing all they can to make EVs more attractive to avoid this occurring.
I suppose the other way of looking at it would be to load non-fully electric cars with a premium to offset the fine they'll get
plfrench said:
I suppose the other way of looking at it would be to load non-fully electric cars with a premium to offset the fine they'll get
Presumably quite a bit of both carrot and stick will be needed to encourage private buyers to to choose BEV over ICE in sufficient numbers next year?
I think better incentives will start appearing within the next year or so. I doubt very much they'll just have a straight price cut like Tesla have done. Ford don't seem to be doing particularly well with EVs at the moment (don't know about trucks). The Zoe and Leaf are essentially previous gen EVs and a bit long in the tooth so I'll expect them to dump stock and run them out soon. Popular EVs will still be popular so there's less incentive to drop prices there.
It has to happen if they want to sell cars. Everyone is tightening their belts and PCP is horrific when faced with no discounts and 8% APR (or higher in many cases).
Hyundai are offering 0% on the IONIQ 5 and 6, Tesla too for business purchases over 4 years. It's going to be the only way to get people through the door.
Hyundai are offering 0% on the IONIQ 5 and 6, Tesla too for business purchases over 4 years. It's going to be the only way to get people through the door.
Customers aren't keen, governments are telling manufacturers that they must sell customers EVs or else....
Manufacturers are stuck in the middle, having invested billions in products the market doesn't really want.
IIRC there's still 7 years to go in the UK and 12 in Europe so no need to panic quite yet.
Manufacturers are stuck in the middle, having invested billions in products the market doesn't really want.
IIRC there's still 7 years to go in the UK and 12 in Europe so no need to panic quite yet.
plfrench said:
For example, if VW sell 100,000 cars in the UK during 2024, but only sell 20,000 EVs, and therefore miss their 22% target, then they'll be presented with a fine of 2,000 x £15k = £30M. That doesn't sound like an appealing place to be in, so I would think they'll be doing all they can to make EVs more attractive to avoid this occurring.
I presume this is why the likes of Ford have dropped the Fiesta?plfrench said:
I think there will be a very interesting resetting of the price point of EVs in the near future assuming the Zero Emissions Vehicle Mandate happens from 1st Jan 2024. The cost of missing their EV sales targets will be draconian (£15k per missed vehicle sale).
For example, if VW sell 100,000 cars in the UK during 2024, but only sell 20,000 EVs, and therefore miss their 22% target, then they'll be presented with a fine of 2,000 x £15k = £30M. That doesn't sound like an appealing place to be in, so I would think they'll be doing all they can to make EVs more attractive to avoid this occurring.
I suppose the other way of looking at it would be to load non-fully electric cars with a premium to offset the fine they'll get
Car manufacturers really need to get their fingers out if they don't want to get hammered by penalties. I don't get why they're not putting more energy into promotion and fighting the press on misinformation.For example, if VW sell 100,000 cars in the UK during 2024, but only sell 20,000 EVs, and therefore miss their 22% target, then they'll be presented with a fine of 2,000 x £15k = £30M. That doesn't sound like an appealing place to be in, so I would think they'll be doing all they can to make EVs more attractive to avoid this occurring.
I suppose the other way of looking at it would be to load non-fully electric cars with a premium to offset the fine they'll get
Here in MK, we used to have an EV experience centre, which was funded by Polar but they weren't actually selling anything. It was just there to promote EV's. They're precisely why I bought one.
Other than having a team of experts, they had a fleet of EV's for hire at ridiculously low rates (£50/4 days) which were refundable if you purchased an EV (not through them). A brilliant scheme and an easy way to try an EV without the hard sell.
It seems like we could do with these kinds of things all over the country but partially funded by all manufacturers to help consumers. People say that the public don't want EV's but is most likely due to fear of the unknown and what seems to be a coordinated campaign against them by the press.
Zero Fuchs said:
It has to happen if they want to sell cars. Everyone is tightening their belts and PCP is horrific when faced with no discounts and 8% APR (or higher in many cases).
Hyundai are offering 0% on the IONIQ 5 and 6, Tesla too for business purchases over 4 years. It's going to be the only way to get people through the door.
Tesla are offering 0% on personal PCP with zero deposit and any term.Hyundai are offering 0% on the IONIQ 5 and 6, Tesla too for business purchases over 4 years. It's going to be the only way to get people through the door.
SWoll said:
Yes but I'd wager a lot of their customers are middle-aged or with families and more importantly with mortgages. £638 a month is £7000 a year to use a car. And they probably have a decent one already. Tough to sell. And does this include £1100 for a home EV charger? Frimley111R said:
SWoll said:
Yes but I'd wager a lot of their customers are middle-aged or with families and more importantly with mortgages. £638 a month is £7000 a year to use a car. And they probably have a decent one already. Tough to sell. And does this include £1100 for a home EV charger? Trevor555 said:
I presume this is why the likes of Ford have dropped the Fiesta?
I can't answer that question but its a good question and does make you wonder. I didn't realise the fines could be £15k per car thats been mentioned on this thread. At some point the govt needs to leverage this fine money, and use it for incentives to get people to buy them to meet their objective. Or repackage the fine differently - £7.5k fine and the consumer gets £7.5k off the price of the car so that its net zero cost for the govt and the fine to the manufacturer is cut in half and the overall result is more EV's sold.
Not sure how you could package that up but straight up fines to the manufacturer that just goes to Govt coffers with no Govt investment to encourage EV sales is just rediculous really.
soupdragon1 said:
I can't answer that question but its a good question and does make you wonder.
I didn't realise the fines could be £15k per car thats been mentioned on this thread. At some point the govt needs to leverage this fine money, and use it for incentives to get people to buy them to meet their objective. Or repackage the fine differently - £7.5k fine and the consumer gets £7.5k off the price of the car so that its net zero cost for the govt and the fine to the manufacturer is cut in half and the overall result is more EV's sold.
Not sure how you could package that up but straight up fines to the manufacturer that just goes to Govt coffers with no Govt investment to encourage EV sales is just rediculous really.
They are certainly hefty fines, but it’s only a proposal at this stage… the consultation on this closed a couple of months ago, but there hasn’t been a result and final decision published yet. It must be due pretty soon though as there is usually a 6month notice period prior to something like this kicking in - considering it’s due to start 1st Jan ‘24, that doesn’t give much time!I didn't realise the fines could be £15k per car thats been mentioned on this thread. At some point the govt needs to leverage this fine money, and use it for incentives to get people to buy them to meet their objective. Or repackage the fine differently - £7.5k fine and the consumer gets £7.5k off the price of the car so that its net zero cost for the govt and the fine to the manufacturer is cut in half and the overall result is more EV's sold.
Not sure how you could package that up but straight up fines to the manufacturer that just goes to Govt coffers with no Govt investment to encourage EV sales is just rediculous really.
SWoll said:
Zero Fuchs said:
It has to happen if they want to sell cars. Everyone is tightening their belts and PCP is horrific when faced with no discounts and 8% APR (or higher in many cases).
Hyundai are offering 0% on the IONIQ 5 and 6, Tesla too for business purchases over 4 years. It's going to be the only way to get people through the door.
Tesla are offering 0% on personal PCP with zero deposit and any term.Hyundai are offering 0% on the IONIQ 5 and 6, Tesla too for business purchases over 4 years. It's going to be the only way to get people through the door.
Business monthlies significantly lower thanks to a £4k higher GFV at 48m for the base Model 3.
Truckosaurus said:
Zero Fuchs said:
...People say that the public don't want EV's but is most likely due to fear of the unknown ...
Indeed. My parents won't even accept a courtesy car with an automatic gearbox as they have never owned a car with one. Frimley111R said:
Truckosaurus said:
Zero Fuchs said:
...People say that the public don't want EV's but is most likely due to fear of the unknown ...
Indeed. My parents won't even accept a courtesy car with an automatic gearbox as they have never owned a car with one. I can't believe that some manufacturers have such power over governments but aren't able to get people on side. They've worked wonders convincing the public to buy SUV's but struggle with EV's. Bizarre.
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