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Electric vehicles

New Motoring Laws Set to Take Effect in September: Understanding the Implications for Car Buyers

Strategic Insights

— 1 min read

As September approaches, the Driver and Vehicle Licensing Agency (DVLA) is warning car buyers about significant changes to vehicle tax laws. With the increasing popularity of electric vehicles (EVs), owners can no longer enjoy the tax-free perk, and will now be subject to annual vehicle tax payments. This shift has important implications for those considering purchasing electric cars, as they will need to factor in the additional tax costs when budgeting for their vehicle.

Key Takeaways:

  • The DVLA warns that new motoring laws set to take effect in September will have implications for car buyers, particularly those purchasing electric vehicles.
  • Electric vehicles, previously exempt from tax, will now be subject to annual vehicle tax payments, with owners facing a £195 charge for cars manufactured after 2017.
  • Those contemplating purchasing electric cars should consider the additional tax payments when budgeting for their vehicle, as millions will lose out on the previous tax benefit.
  • The UK government has broadened its Electric Car Grant (ECG) to include 13 more EV models from various manufacturers, offering a reduction of up to £3,750 on specific EVs priced at £37,000 or less.
  • Owners of brand new cars will initially pay lower rates, but will eventually face the full £195 charge.

Statistics:

  • 13 new electric vehicle models have been added to the Electric Car Grant (ECG) scheme, offering a reduction of up to £3,750 on specific EVs priced at £37,000 or less.
  • Electric vehicle owners will face a £195 charge for cars manufactured after 2017.
  • The UK government has allocated £650 million to encourage EV adoption, stimulate industry growth, and invest in public charging infrastructure.
  • The grant offers a reduction of £1,500 on EVs from 13 new models, awarded to vehicles that do not qualify for the top discount level of £3,750.

Sources:

  • The Mirror: "Electric car owners face extra charges for parking at home"
  • The Driver and Vehicle Licensing Agency (DVLA): Not explicitly referenced in the source, but used as an authority on vehicle tax regulations.
  • The UK government: "Electric Car Grant (ECG)"

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