By 2035, new petrol and diesel cars will be banned in the UK, with government incentives and expanded charging infrastructure aiming to make electric vehicles more accessible and financially viable for buyers.
Are petrol stations on borrowed time in the UK? According to the UK Government, four out of five new cars on British roads will be electric by 2030!
In a significant shift from traditional motor habits, electric vehicles (EVs) are gaining greater prominence amongst British motorists. This transition is driven not only by government regulations, but also as a green solution to a growing public desire to embrace sustainable transportation.
Dive in for the latest on electric car mandates in the UK for 2024 and beyond. We’ll peel back the layers of government policy and how it affects you.
Current State of Electric Vehicles in the UK
The UK’s electric vehicle revolution is gaining momentum, and car finance buyers are right in the centre of it. As of August 2023, 20% of new cars sold in the UK were zero-emission vehicles, with the government target rising to 22% for 2024.
Thanks to government grants, the upfront cost of buying an EV is more manageable than ever before:
- Plug-in Car Grant: Save up to £2,500 on the purchase of a qualifying electric car.
- Home Charging Grant: Save up to £350 on the installation of a charging point at your home.
- Tax Benefits: Enjoy tax benefits like exemption from road tax and potentially lower company car tax rates.
- Public Charger Boost: The government is investing heavily in expanding the public charging network, aiming for 300,000 chargers by 2030. As of January 2024, there were 53,677 public EV charging points, although recent initiatives include a £381 million investment that could double the network by year-end.
This focus on infrastructure, combined with government incentives, provides a strong foundation for the growth of EV sales – offering consumers a smoother transition to hybrid or electric vehicle ownership.
Government EV Policies and Legislation
The UK government, now led by Prime Minister Keir Starmer, is expected to continue the strides made under former PM Rishi Sunak towards promoting EV-friendly policies. Here is how the latest government updates impact car finance buyers in the UK:
- Phased Approach to Ban on Petrol and Diesel Cars: While the original plan called for a 2030 ban on new petrol and diesel cars, this has been adjusted to 2035. While this might seem like a setback, it offers you more time to consider your options. With yearly targets for zero-emission vehicles increasing, you’ll see a wider selection of electric cars hit the market in the coming years – making it easier to find an electric car that fits your needs and budget.
- Financing Options Evolve: As the EV market matures, car finance providers are able to further tailor offerings to consumer demands. At Bright Motor Finance, we are committed to providing competitive financing options specifically tailored to electric vehicles – get in contact with one of our friendly specialists to explore your car finance options further.
- Ambitious Goals for a Sustainable Future: While the 2035 ban on new petrol and diesel cars seems far off, it’s worth keeping in mind for future car purchases. If you’re planning to keep your car for a long time, opting for an electric car now could be a smart decision. Not only will you benefit from the current financial incentives, but you’ll also be future-proofing your transportation needs.
While the policies are subject to change following Labour’s victory in the 2024 UK General Election, the current transition to electric vehicles is well underway.
If you are ready to explore competitive car finance options that suit your personal needs, apply for a free, no-obligation quote with Bright Motor Finance.
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Impact of EV shift on Car Buyers
The shift towards electric vehicles brings both new opportunities and considerations for car finance buyers in the UK. Let’s explore how EVs impact your car finance journey:
Cost Considerations
Don’t be put off by the higher upfront purchase prices tacked on EVs – there is more than meets the eyes:
- Upfront Costs: Electric vehicles typically have a higher initial price tag compared to petrol or diesel cars due to battery technology. However, government grants can significantly reduce this cost to make it a cheaper option than traditional petrol models.
- Long-Term Savings: While the upfront cost can be higher, EVs offer significant financial benefits over time. Primarily, electricity is cheaper than petrol or diesel per mile, meaning substantial fuel cost savings. There is also typically less maintenance with EVs due to fewer moving parts and less frequent servicing, translating to lower annual running costs.
Variety of Electric Cars
With the nationwide push to electric, the good news is that you have a growing selection of EVs to choose from – catering to different budgets and needs:
- Budget-Friendly Options: Several affordable electric cars, like the Nissan Leaf, offer an entry point into electric mobility with competitive prices and sufficient range for daily commutes.
- Mid-Range and Premium Choices: Established automakers like Kia offer electric models across different price points, such as the mid sized Kia Niro, which features advanced technology and extended ranges in an affordable package.
- The Used EV Market: Not everyone is on the hunt for fresh from the factory cars! The rapidly growing used EV market presents an attractive option for budget-conscious buyers. If you are a second-hand enthusiast, it is still worth considering factors like battery age, warranty coverage, and charging history when weighing-up used electric vehicles.
Whether your heart is set on a new or used electric car, Bright Motor Finance is here to support you. We can help you understand the financial implications, navigate the variety of models available, and make an informed decision based on your budget and needs – find a range of flexible, personalised car finance options in just a few clicks here!
FAQs
Q. What is the Zero Emission Vehicle (ZEV) mandate?
A. The ZEV mandate requires that a specific percentage of new cars sold in the UK must be zero-emission vehicles. By 2030, 80% of new cars and 70% of new vans are mandated to be zero-emission, increasing to 100% by 2035.
Q. Is it worth buying an electric car in 2024?
A. It all depends on your personal needs! Purchasing an electric car in 2024 can be a worthwhile investment due to increasing model availability, expanding charging infrastructure, and financial incentives offered by the government. Yet, with the government pushing back zero-emission targets to 2035, motorists have time left to explore diesel and petrol options.
Q. What is range anxiety, and how significant is it for electric car owners?
A. Range anxiety is the fear of running out of battery charge before reaching a charging station. During the early days of EVs, a lack of nationwide charging infrastructure meant drivers had to methodically plan routes. With increasing investment into charging points, range anxiety is fast becoming a problem of the past.
Unsure if an electric car fits your budget? Bright Motor Finance can help you find the perfect financing plan to make your electric dreams a reality – apply for a personalised quote in just 60 seconds!