Every Vauxhall electric car is now priced at less than £40,000 to save customers a total of £2,125 in road tax.
From 1 April, electric cars are no longer exempt from road tax (VED). In the first year, owners will pay the lowest possible rate of £10 – but after that, they pay the same standard £195 rate as for petrol or diesel cars.
Electric cars are also now liable for the ‘Expensive Car Supplement’. This sees cars costing more than £40,000 charged an additional £425 a year in VED for five years, from the second year of registration.
This comes on top of the standard £195 a year road tax rate, too.
It means that in the first six years of ownership, owners of cars costing more than £40,000 will pay a total of £3,110 in road tax.
However, by pricing all its electric cars under £40,000, and thus escaping the Expensive Car Supplement, Vauxhall EV owners will pay £985 over the same period, saving them £2,125.
Big savings on Vauxhall Grandland
Savings are greatest on the Vauxhall Grandland Electric. Previously, every version of the car cost more than £40,000, with the range-topping model priced at over £45,000.
Now, the Grandland Electric Design costs from £36,455, the GS from £38,505 and the Ultimate from £39,095.
Range-topping versions of the Vauxhall Mokka Electric and Vauxhall Astra Electric Sports Tourer also now cost less than £40,000.
Electric Car Supplement criticised
Vauxhall boss Eurig Druce has, however, used the announcement to criticise the controversial Electric Car Supplement, which has remained at £40,000 since its inception back in 2017.
“If it were to have risen with inflation, it would now be around £52,000,” said Druce. “With the average price of an EV in the UK at around £48,000, this new tax means that customers buying some of the more attainable electric cars on the market are now being penalised, whilst at the same time we are trying to move as many British motorists to electric as possible.
“We’d urge the government to reconsider this new measure and ensure taxation policies incentivise the majority of drivers to make the shift to electric vehicles.”
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