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Government grants cutbacks affect electric car subsidies – Woocarz Car Sales & Finance

Government grants cutbacks affect electric car subsidies

21/12/2021 / Comments 0 / 90 / News 2021
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The government has announced plans to make further cuts in its grants for the purchase of electric cars. The confirmed dates will be from the 22nd of December, with the reduction of £1,000 from £2,500 to £1,500. This is for electric cars priced under £32,000 will be eligible. As stated by The Department of Transport, the reason for the change is to set aside more funding for more affordable cars. 

It was further announced that the government’s plug-in subsidy scheme has helped the purchase of nearly half a million cars over the past ten years. The British government also went on to add that, yes grants have been reduced over time, however sales of electric vehicles have grown, and reached record levels in 2021.

Amazingly, the sales of zero-emission new cars have gone up by 89% in 2021 compared to sales in 2020. Car consumers are already switching in droves to electric vehicles, with the ban on diesel, petrol cars, and vans starting from 2030.

The changes will also affect the grants for electric motorcycles and mopeds, meaning their grants will be reduced from £1,500 for both, now to £500 and £150 respectively.  Also included in the cuts are large electric vans, which have seen their grants reduced from £6,000 down to £5,000 and smaller vans down from £3,000 to £2,500. The RAC has criticised the government’s cuts as a premature step in a now precarious economy in the UK, especially when it comes to the purchase of new cars.

Investment in charging infrastructure

The chief executive of the carmakers’ industry body called the SMMT, said in a statement that slashing the grants again was a blow to customers looking to make the switch. He went on to say the timing couldn’t be worse, with the rate of inflation being at its highest levels for some time, with manufacturers delivering more products, but the market and incentives needed to move faster.

Buying a used hybrid or electric car

With the chip manufacturing industry still reeling from the effects of the pandemic, most major car manufacturers are finding huge supply shortages of vital chip components for new cars. This shortage has had a major impact on brand new car sales but has boosted the sales in the used car market. Most drivers now are turning to quality used cars under five years of age which can still be ideal as an adequate upgrade for the current older car. Another trigger that has boosted used car sales is the introduction and expansion of Ulez in cities like London in the southeast of England.

To meet the increased demand for used cars, companies like Cazoo and Best Price Car Sales, based in Southampton are investing heavily into providing a viable and efficient nationwide delivery service. With the latter offering free delivery throughout the UK. Using the best websites which show a vast collection of used cars, Best Price Car Sales are able to source most makes and models of quality used hybrids and used electric cars, as well as the usual huge selection of used cars. Every car we sell comes with a full warranty, HPI check, and in-depth car inspection.

As a well-established credit broker, we’re able to arrange in most cases, instant car finance, so from start to finish, you are able to browse, choose, buy, and arrange for free delivery to your home at the click of a button and a few minutes on the phone to discuss using your old car as part exchange, if you wish.

To find out more about our current offers and latest deals, call us now on 02380 225 666 and speak to one of our friendly advisors, or alternatively, you can click here and get instant car finance approval today.

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