New incentives 'will boost the electric car market'

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Aurora

New incentives 'will boost the electric car market'

Post by Aurora »

Energy Saving Trust - 03/07/10

The market for electric cars in the UK looks set to receive a boost from several new initiatives, one expert has stated.

Neil Butcher from the design and engineering firm Arup said the rollout of charging points will be a major driver of growth in the months and years ahead.

In Newcastle, London and Milton Keynes, there are already a large number of sites where electric vehicle owners can charge their engines, he pointed out.

Up to 2,500 should be installed in total within the next 12 months.

Other incentives will include a £5,000 subsidy for electric car purchases, with eligible vehicles due to arrive on the UK market towards the end of the year.

"There's also the incentives such as the exempt from vehicle excise duty and the zero company car tax as well," Mr Butcher added.

"It's really the precursor of things to come."

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DominicJ
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Post by DominicJ »

and the zero company car tax as well
Are we going to see loads of management gettiing Tesla Roadsters as untaxed pay?
I cant see how electric cars will be any use for actual business purposes.
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PS_RalphW
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Post by PS_RalphW »

DominicJ wrote: I cant see how electric cars will be any use for actual business purposes.
I think that entirely depends on the business. I can think of loads of local, self-employed people in the service sector or local building trade, etc, who travel less than 50 miles a day visiting customers in their own homes, in big cities and towns. They would be an ideal fit for electric vehicles.

If they needed extra range once in a while, then buy a range extending hybrid, once they start building them in small van formats.
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DominicJ
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Post by DominicJ »

Most of those would have vehicles owned by the business.

If you get a company car, for work and personal use, you have to pay what is in effect income tax on it.
Most of the people you mention will have a Van for work use, which provided you dont use it for personal use, with the exception of a trip to the tip twice a year, you dont pay income tax on.

The change was made because a lot of people realised it was cheaper (for the business and employees) to pay its employees £30k a year and buy them a £30k car once every three years than pay them £40k a year.
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clv101
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Post by clv101 »

DominicJ wrote:I cant see how electric cars will be any use for actual business purposes.
How come? The vast majority of actual car use is compatible with electric cars.
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DominicJ
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Post by DominicJ »

How come? The vast majority of actual car use is compatible with electric cars.
Perhaps its different elsewhere, but you only get a company car where I work if you drive over 10,000 miles a year on business mileage.
So not to your usual place of work and back.

For the most part, these are going to be long distance, I would have thought.
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clv101
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Post by clv101 »

DominicJ wrote:
How come? The vast majority of actual car use is compatible with electric cars.
Perhaps its different elsewhere, but you only get a company car where I work if you drive over 10,000 miles a year on business mileage.
So not to your usual place of work and back.

For the most part, these are going to be long distance, I would have thought.
Where I (used to) work we had company cars irrespective of mileage. Well, actually there were two ways of getting a car. A 'need' car went to anyone who did over 10,000 a year (typically low grade field ops or sales people) and 'perk' cars that were just added onto the benefit package for anyone relatively senior. The majority of the 'perk' car people (myself) included just took the cash allowance instead though - it was the smarter choice if you didn't need/want a fancy BMW but where happy with a lower spec car and cash in your pocket.
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DominicJ
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Post by DominicJ »

A lot of the "Perk" Cars are now gone, or are only with senior people, because of the Tax change I mentioned.
But if that tax change is undone, then I'd expect to see a big take up of them, hence the Tesla comment at the begining.
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PS_RalphW
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Post by PS_RalphW »

I strongly doubt the £5000 subsidy will survive the current round of public spending cuts.

Already Clegg has refused to explicitly defend the subsidy.
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