From Tesla to Toyota, electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs) are becoming increasingly popular as consumers endeavour to make more climate-conscious choices.
In fact, the sales of EVs and PHEVs tripled in October 2020, compared to their sales in October 2019. They account for one in seven new cars sold – a fact that has been acknowledged and perhaps encouraged by the increasing availability of charging points across the country.
But from 2030, the petrol and diesel ban will be in place – with hybrids joining the restrictions from 2035. If you own a petrol, diesel or hybrid car, it may be time to consider whether you want to make the switch to an electric vehicle early, in order to save you the time and hassle closer to the deadline. Below, we take you through the benefits of making this decision sooner rather than later, as well as outlining what the 2030 petrol ban really is.
What is the 2030 petrol and diesel ban?
From 2030, new cars and vans powered exclusively by either petrol or diesel won’t be sold in the UK. Some PHEVS – notably the Toyota Prius – will continue to be sold until 2035, when they will also be banned. This is contingent on these cars being able to achieve a ‘significant distance’ of travel in zero-emission mode. At present, the Government hasn’t yet clarified what that term exactly means.
The only new cars and vans for sale after 2035 will be exclusively electric vehicles, such as the Nissan Leaf or Tesla Model 3, and hydrogen-powered vehicles like the Toyota Mirai.
However, the 2030 petrol ban only applies to the sale of brand-new vehicles. Nearly new or used vehicles – that is, second-hand ones – won’t be affected by the ban, and can continue to be sold in showrooms or online. Hybrid cars which can travel ‘significant’ distances in zero emission mode will also still be allowed to be sold on the used marketplace.
What are the benefits of switching early?
There are a number of reasons that it might be advantageous to start thinking about your vehicle before the ban comes in – particularly if you’re in possession of a petrol or diesel car.
Benefit from tax incentives
In order to help the move to EVs, the government is setting aside £582 million in grants to facilitate the transfer to EVs and PHEVs. At present, the government subsidises £3,000 from the purchase of EVs. The government is likely to extend the period during which this is offered, but the transport secretary has acknowledged that it will ‘go eventually’. By making the switch early, you’re more likely to see some of this funding, which can then help you fund a new vehicle.
Get a higher resale value for petrol or diesel cars
As 2030 approaches, manufacturers are likely to offer significant discounts on new models, as they attempt to shift them before the ban comes into place. Consequently, the resale values of traditional combustion engine vehicles are expected to be hit. Getting in early and reselling your car will therefore be more financially forward-thinking. You’ll also avoid any potential tax increases for petrol and diesel vehicles further down the line.
When the 2030 petrol ban comes in, there will inevitably be some disruption as drivers get their heads around the way that EVs and certified PHEVs work. For example, drivers will have to get used to charging their cars using either public networks or domestic plug-ins. Travel times will possibly have to be amended – particularly for long distance journeys – in order to accommodate charging, too. By making the switch early, you’ll be more comfortable with how EVS work, and where your local charging point is.
Preparing for the 2030 petrol ban
If you’re looking to make the switch to an electric vehicle, My Car Credit is on hand to help. With our car finance checker, you can check your eligibility without affecting your credit score, before comparing deals from our wide panel of lenders for all circumstances. To find out more, call our friendly team on 01246 458 810.
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