Motor finance firm warns that impending changes to incentives could damage EV take-up.
EV drivers face shelling out more next year to stay on the road when incentives change – but many of them are unaware of what’s coming.
That’s according to new research by a motor finance firm, which is warning that the changes could have a major impact on demand for electric vehicles.
EV owners are currently exempt from paying vehicle excise duty (VED) as well as the Expensive Car Supplement, which is an additional levy on cars with a list price of more than £40,000.
However, in 2025, both those benefits will be axed unless the new government opts for a U-turn.
The owner of any EV that exceeds the £40,000 threshold will have to pay an extra £410 a year via the supplement. Meanwhile, owners of EVs registered on or after April 1, 2025 will also have to pay the lowest rate of tax – £10 – for the first year then the standard VED rate of £190 from the following year.
Meanwhile, as of April 1, 2025, owners of EVs registered between April 2017 and March 2025 will be liable for the same annual VED charge as internal-combustion vehicles, which this year stands at £190.
Any EV registered between March 2001 and March 2017 will be liable for the equivalent of this year’s £20 annual VED charge.
A poll of 500 EV drivers by Close Brothers Motor Finance found that more than half of them (54 per cent) had bought electric vehicles to reduce costs and save money, while 17 per cent said they’d been swayed by incentives such as the government grant – a £1,500 subsidy towards the cost of a new EV. However, the grant was dropped out of the blue in June 2022.
The research found that a third (33 per cent) of the drivers wouldn’t have bought an EV if they’d known about the upcoming changes and almost a quarter (23 per cent) were unsure if they’d have bought an electric car in the first place.
Meanwhile, 42 per cent of the EV drivers were unaware of the impending removal of the benefits.
Lisa Watson, Director of Sales at Close Brothers Motor Finance, said: “Changes to electric vehicle exemptions set to come into force in 2025 make for negative reading for both current and prospective owners.
“The current zero emission vehicle mandate, which requires 22 per cent of new cars manufactured this year to be electric, is already proving a challenge. The removal of available incentives could further dampen demand, which could cause further headaches for manufacturers.
“Many will feel the impacts of the changes. For example, the average price of a new EV is significantly higher than the Expensive Car Supplement threshold. The cost-of-living crisis, coupled with the fact that a majority of EV owners purchased their car to reduce costs, means the upcoming changes leave less reason for motorists to consider making the switch.”
For those who need to carry many people in a vehicle powered by electricity, the market is small but growing. James Batchelor tries Toyota’s nine-seater people-mover.
What is it?
The Proace is Toyota’s mid-sized van, and if it looks a little familiar then that’s because it shares rather a lot of its componentry with Stellantis vans from Peugeot, Citroen, Vauxhall and Fiat. The Proace, along with its smaller and larger siblings, are the result of a partnership between the two giant carmakers, meaning owners get tried and tested technology backed up by the Japanese brand’s fantastic customer service.
What’s new?
Just like the car market, the van world is quickly adapting to the need to launch more electric-powered models. Until earlier this year, Toyota could sell you a diesel powered Proace Verso. But the requirement to sell more zero-emission vehicles has kicked in when it comes to this practical van, as Toyota has recently made the decision to axe the derv. So now it’s electric only, making the Proace Verso (along with its Stellantis sisters) one of a few, but growing range of people carriers powered by electricity.
What’s under the bonnet?
Instead of 1.5- and 2.0-litre diesels, you’ll find a 134bhp electric motor powering the front wheels. This is fed by a 50kWh battery pack – the same size used in a variety of Stellantis models such as the E-208 supermini. Toyota claims you’ll be able to cover 143 miles before needing to top up its battery, and thanks to 100kW charging capability a 10 to 80% recharge takes less than 30 minutes. The battery pack is neatly located under the van’s floor, meaning there’s no impact on space inside.
As this review went to print, Toyota announced a facelifted model sporting a larger 75kWh battery pack for a claimed 214-mile range.
What’s it like to drive?
Diesel power and large vans with many seats on board go hand in hand, but we were pleasantly surprised at how relaxing the Proace Verso is to drive. It’s easy to get a comfortable driving position, and the high-mounted seats give a fantastic view of the road. The absence of a growly diesel engine under the bonnet makes for a far more refined driving experience, while the ride is nicely supple – the Proace Verso shrugs off potholes and speed humps with ease.
Three different driving modes – Eco, Normal and Sport – either restrict the electric motor’s power to eke out the range or unlock power for more speed. The latter is particularly useful when fully loaded, but whatever the driving mode the Proace Verso feels quick enough thanks to the motor’s ability to deploy its torque immediately. The steering is light and accurate, and unlike in some electric vans, the brake pedal feels natural despite being regenerative.
The claimed 143-mile range is doable when driving with limited passengers on board, but fill the van to its capacity like we did and that range is more like 100 miles in warm weather.
How does it look?
Naturally, a van is never going to turn heads down London’s King’s Road, but with its flashes of chrome on the grille and smart alloy-like plastic wheel covers, there’s a neatness to the styling. Toyota has done quite a good job at making the Proace Verso look different from other Stellantis models, and despite the shared basic body shell, the Toyota’s corporate look works well. The forthcoming facelifted model wears a very different design, adopting a look more akin to Toyota’s recent electric cars.
What’s it like inside?
Verso is a name that has traditionally been used on Toyota’s more practical models, and with the Proace the Verso name is well matched. It comes in two different wheelbases – the smaller L1 measures 4,933mm, while the longer L2 maxes things out to 5,333mm – and there’s the choice of seven-, eight- and nine-seat configurations. In long L2 nine-seater spec, like our test vehicle, there’s tons of space, but the only real benefit of going for the L2 model is if you need room to carry the luggage of those nine people onboard as it has more boot space.
Interior quality is perfectly fine for this type of vehicle. The dashboard is covered in hard, durable plastics, but it’s nicely designed. The new facelifted model brings a redesigned dashboard.
What’s the spec like?
Our test van was in Shuttle spec and, as the name implies, it’s designed to ferry people around with the minimum of fuss. Therefore the seats are trimmed in hard-wearing fabric and the flooring is equally hard – there are no carpets. That said, an air conditioning panel that stretches from the front to the rear of the vehicle with temperature controls and vents boosts the comfort levels.
A seven-inch touchscreen sits neatly within the dashboard, and it has wired Apple CarPlay and Android Auto functionality, along with built-in sat-nav. For the refreshed version, Toyota is expected to add more models designed for families and VIP business transport.
Verdict
With a 50kWh battery pack and a range of between 100 and 140 miles in everyday driving, the Proace Verso may be adequate for large families looking for EV transport. But as a vehicle for shorter journeys, private hire or hotel transfers, the Proace Verso really does impress. The forthcoming updated model with its longer range will increase the Proace Verso’s flexibility, but regardless, it’s a quiet and comfortable to drive people-mover that could be ideal for families and businesses with specific needs.
Facts at a glance
Model as tested: Toyota Proace Verso EV L2 50kWh Long Shuttle
Griffin model will be available in both hatchback and Sports Tourer body styles, and offered in petrol and electric guises.
Vauxhall has revealed the Astra Griffin – a new special edition that focuses on value for money.
Available in petrol and electric guises, the Griffin special edition undercuts other Astras by as much as £2,800 and becomes the new entry-level model. A Sports Tourer estate version, available exclusively with electric power, is also offered.
Sitting beneath the existing Design trim level, the Griffin comes as standard with tinted rear windows, heated front seats and steering wheel, front and rear parking sensors, LED headlights, wireless phone charging, and a 180-degree parking camera.
Power comes from a 128bhp 1.2-litre three-cylinder turbocharged petrol engine which is paired with a six-speed manual gearbox. The electric version uses a 54kWh battery that gives a claimed range of up to 258 miles, and is paired to a 153bhp electric motor. A 100kW DC charging capability allows the electric Griffin to get a 20 to 80 per cent charge in around 26 minutes.
James Taylor, Managing Director of Vauxhall said: “The Astra going electric is a big milestone for both our popular family car as well as for the Vauxhall brand as we move towards our commitment of only offering fully electric cars and vans from 2028. Astra electric and Astra Sports Tourer electric will offer everyday practicality, comfort and locally emission-free driving pleasure combined with the innovative technology and bold and pure design language that Vauxhall is known for.”
Prices for the 1.2-litre petrol hatchback start at £24,795, while the electric version comes in at £34,995 for the hatch and £37,195 for the Sports Tourer. Compared to the Design model, the petrol Griffin model is £2,775 cheaper, while the electric version slashes £2,800 from the starting price.
Order books are open now with deliveries for the electric versions expected to commence this month, and petrol cars in November.
This new model produces 626bhp from a twin-turbocharged mild hybrid V8 that enables a 0-60mph time of 3.6 seconds.
Range Rover has unveiled its most potent model yet – the Sport SV Edition Two.
Under the bonnet, you’ll find a 4.4-litre twin-turbocharged V8 engine with mild-hybrid assistance. In total, it kicks out a heady 626bhp and 750Nm of torque, enabling a 0-60mph time of 3.6 seconds and a top speed of 180mph.
To make the SV Edition Two as quick as possible, the firm has shed a total of 76kg over the standard car’s kerb weight when fitted with all the lightweight options. These include carbon ceramic brakes and forged alloy wheels. As standard, the car comes with a carbon fibre bonnet for extra weight-shedding. It’s
A choice of blue Nebula matte, Marl grey gloss, Sunrise copper satin and Ligurian black gloss exterior paint finishes are on offer to make each car individually stand out.
Geraldine Ingham, managing director at Range Rover said: “What makes Range Rover Sport SV so desirable is its unique combination of dynamic performance, modern sporting luxury design, its cutting-edge sensory technology and breadth of capability.”
He added: “Today we announce the next step in our SV line-up, Range Rover Sport SV Edition Two, available with new design themes which offer our discerning clients the chance to enjoy four distinct characters of our high-performance luxury SUV.”
Inside, there is a redesigned steering wheel with a thicker rim and enhanced thumb grips as well as larger paddle shifters. There are SV Performance seats with integrated head restraints with carbon fibre backboards and an SV mode button which adjusts the suspension, powertrain, steering, transmission and active exhaust for the best performance.
Prices are yet to be revealed, but it’s expected to cost more than the Edition One which was priced at £171,460.
The average retail price for EVs has fallen by 8.5 per cent in three years and 14 per cent in four years, according to data at vehicle valuation HPI.
Values of used EVs have fallen past those of second-hand internal combustion-engined vehicles on average.
That’s according to vehicle valuation specialist HPI, which says cars such as the Jaguar I-Pace and Mercedes EQC have lost almost as much as £20,000 versus their values in the summer of 2022.
Prices for a three-year-old I-Pace start at around £20,000, whereas a Mercedes EQC can be had for around £25,000 for a 2021 example.
In comparison, 2021 diesel Jaguar F-Paces are on the market for £25,000 to £35,000, while a three-year-old petrol-powered Mercedes GLE is priced at around £30,000 to £40,000, according to Auto Trader listings.
What’s more, the Porsche Taycan can be had for as little as £50,000. Two years ago, the same car would be worth around £90,000, meaning a depreciation of almost half its value. A petrol Porsche Panamera of a similar age is currently listed on Auto Trader for around £60,000 to £65,000 – a 20 per cent-plus increase.
HPI said depreciation hits a car the most in the first three years of its life, with EV prices falling by as much as 8.5 per cent compared with ICE vehicles over that period, rising to 14 per cent after four years.
Chris Plumb, EV specialist at HPI, said: “The growing availability of second-hand electric models is driving demand as motorists want to reduce their environmental footprint and make significant motoring cost savings due to high diesel and petrol prices.
“However, switching from traditional petrol and diesel motoring to electric isn’t a like-for-like swap, and certain factors should be taken into consideration before going ahead.”
When buying an EV, the factors that need to be considered are the installation of a wallbox at home – costing around £800 to £1,000 – as well as looking into a salary-sacrifice scheme, where an employee gives up some of their earnings for a new or used car. Not only that, but an EV may not be ideal for people who don’t have off-street charging or don’t live near any public charging points.
In July 2024, 18.5 per cent of all new car registrations were EVs, with 27,335 sold. Meanwhile, sales of used electric cars in the first quarter of this year stood at 41,505 – a 71 per cent year-on-year increase and generating a 2.6 per cent market share.
The Skoda Kamiq has only just arrived but it has immediately made an impression. Cameron Richards reports.
Last month I nearly shed a tear as I said goodbye to my trusty Skoda Karoq. It was pretty much the perfect daily companion as it was practical and used its space in a clever and thoughtful way, while also having superb (no pun intended) comfort and refinement levels.
Its replacement is its smaller brother, the Kamiq. I have gone for the top-of-the-line Monte Carlo model, and it features bucket sport seats, fake carbon fibre inlays on the door cards and seat bolsters, diamond-cut alloy wheels and a full-length glass panoramic roof.
There was a pang of disappointment as I clambered aboard for the first time to find no leather interior, no heated seats or steering wheel, and no magnified ice scraper.
But, if we gloss over those little first-world issues, the last month has proved that the cheaper Kamiq can still impress me in many areas.
First of all, while it may not feature as many clever design features as the Karoq, it still comes with a parking ticket holder on the windscreen, a phone holder located on the back of the driver’s seat and an umbrella in the driver’s door.
My Karoq was fitted with a very smooth 1.5-litre TSI four-cylinder petrol engine, but this Kamiq has a smaller 1.0-litre TSI unit under the bonnet. Like the Karoq, though, it comes with a seven-speed DSG automatic gearbox.
Out on the road the three-cylinder engine does sound a little thrummy, and the gearbox has the same annoying characteristics as before, such as being a little slow to respond, and at times, shifting down a gear when not needed. However, the Kamiq does drive well and is easy to manoeuvre around town. My first impressions are that it’s not as comfortable to drive as the Karoq, but its visibility is better, thanks to the larger side windows.
The rear seats aren’t as versatile either. The Kamiq comes with a 60:40 bench seat which just folds down, whereas the Karoq’s 40:20:40 individual seats that could slide, recline and even be removed altogether were more practical.
But, the Kamiq does come with a few nifty options which makes life a bit easier. It’s fitted with a powered tailgate, and it comes with pop-out door edge protectors to prevent you from chipping the paint on walls when opening the doors.
The full-length panoramic roof does flood the cabin with light, which is a nice feature, and the Kamiq isn’t short of cubby spaces. Like the Karoq, the Kamiq also comes with a nifty little storage bin (literally) in the front driver’s door card.
I haven’t been able to use the Kamiq as much as I would have liked recently due to a number of other short-term test cars arriving at my house, but I did stretch the car’s legs on a trip to the Goodwood Festival of Speed last month. It proved to be refined and comfortable at speeds and because you sit lower than you do in traditional SUVs, it feels more car-like to drive.
Our example is front-wheel drive and in the muddy, slippery fields of Goodwood you could feel it struggling slightly for grip, but not to the point where you felt as though the car was going to get stuck.
It’s also been on a couple of other trips with four-up and it performed well. There were no complaints of passengers struggling for head and legroom, and the drive didn’t feel all that different with the extra weight of those onboard.
My first few weeks behind the wheel have been enjoyable, and I am looking forward to the months ahead. Sure, it’s not as luxurious, comfortable or not as practical as the Karoq, but I think I will grow to love it just as much.
The GTi Clubsport, R Black Edition, R and R Estate are all available to order from August 8.
Volkswagen has announced that the most driver-focused models of its latest Golf will be available to order as of this week.
The GTi Clubsport features its own unique style of bumpers and honeycomb air-intake grille. It also comes with LED matrix headlights and LED rear tail-lights as well as standard equipment such as heated front seats and keyless entry.
Powering the Clubsport is a 2.0-litre turbocharged petrol engine that produces 296bhp and has a top speed of 155mph, while 0-60mph is dispatched in 5.4 seconds.
The R model will be available in either hatchback or estate guise and with the same engine as the Clubsport, but power increases to 328bhp and grip will be enhanced by the firm’s 4Motion four-wheel-drive system. The standard transmission will be a seven-speed DSG. The top speed remains the same as the Clubsport’s, but the extra grip allows for the 0-60mph to decrease to 4.4 seconds. If you choose the R-Performance Package, the top speed increases to 167mph.
Inside are new sports seats with integrated head restraints and Volkswagen’s latest 12.9-inch infotainment screen with ChatGPT.
Completing the pack is the R Black Edition, which features the same drivetrain and power as the R but features some exterior and interior enhancements.
On the outside, there are 19-inch black alloy wheels plus darkened Volkswagen and R badges as well as black brake callipers.
Thomas Schäfer, CEO of Volkswagen Passenger Vehicles, said: “The Golf has been at the heart of the Volkswagen brand for half a century now, offering affordable mobility for all at the highest technical level. This is precisely what we are now building on with the new evolutionary stage – with even higher efficiency, comfort and quality and a new operating concept. The Golf does not get any better than this.”
Prices start at £41,655 for the GTi Clubsport, while the R is priced from £43,320 for the hatchback and £44,685 for the estate and the R Black Edition comes in at £44,570. All models are available to order from August 8.
The car travelled a distance of 569 miles before having to be charged up, beating the previous record of 563.97 miles.
A Ford Mustang Mach-E has broken the Guinness World Record for the longest distance travelled in an electric vehicle on a single charge.
The car was driven by Kevin Booker and Sam Clarke, and co-piloted by Richard Parker – all from Webfleet – Bridgestone’s mobility management solution.
The previous record was achieved in September 2023 in Hangzhou, China, by Zeekr’s autonomous division, which managed a total distance of 563.97 miles.
The new record attempt was fastidiously documented with independently verified video footage, odometer readings, GPS, and battery level data from Webfleet.
The record-breaking car was fitted with a 91kWh battery pack, and the car averaged a total of 6.25 miles per kWh on public roads throughout Norfolk, Lincolnshire, Yorkshire, Nottinghamshire, Leicestershire and Cambridgeshire.
Beverley Wise, regional director for Webfleet UKI Bridgestone Mobility Solutions, said: “This record is a testament to the hard work and dedication of everyone involved in this endeavour.
“It represents a significant milestone in the electrification of road transport and demonstrates the potential of electric vehicles when supported by innovative Bridgestone tyre design and advanced fleet management technology.”
Additionally, the drive was over 24 hours and there was a mixture of urban and rural roads to emulate real-world driving.
Edmund King, AA president, said: “We are delighted to have supported this incredible achievement with our expert patrols and back-up team. The drivers, together with Ford Mustang Mach-E, Bridgestone and Webfleet, have all used their expertise to prove that EVs can go much further than people think. Such endeavours are important to show that electric vehicles can be a major part of the future transport mix.”
Only 2,275 Porsche 928s were built for the US market in 1979, and this example has been stored by its current owner since 2021.
A Porsche 928 featured in the film ‘The Risky Business’ will go up for auction at Bonhams cars in America next week.
The German coupe comes with a 4.5-litre V8 that produces 230bhp and features a five-speed manual gearbox, four-wheel independent suspension and disc brakes all around.
What makes this Porsche so special is that it was reported to have been used by the film star Tom Cruise who learnt how to operate a manual transmission behind the wheel.
A total of three 928s were used for the driving shots in the film, with the one being offered for sale being used for any wide shots with the whole car in view.
Originally, the car was painted white with a five-speed manual gearbox, but was repainted Platinum metallic – a colour available for a contemporary 928 but not introduced until 1981 for the film.
The car was rented by a movie car company and was used in driving and close up shots, especially in a chase scene with a 1975 Cadillac Coupe DeVille.
After its famous on-screen film production life, the car returned to California and was resprayed back to white and passed through a few local owners before it was rediscovered by documentarian Lewis Johnsen of Denver, Colorado.
The 928 would later move on to another collection on the East Coast where it received mechanical and cosmetic work – while the current owner has had it in their possession since 2021.
The Porsche is predicted to sell for between £1.1 to £1.4 million pounds when the auction begins on August 16.
British buyers are still opting for crossovers and small hatchbacks according to the latest figures from SMMT.
July saw another steady growth in the new car market with a 2.5 per cent increase in registrations being experienced during the month..
A total of 147,517 new cars were registered last month, making it the best recorded July since 2020, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
The top 10 best-selling models are still dominated by crossovers and small hatchbacks, showing that they are the go-to choice for British buyers. Let’s take a look at the models that secured the top 10.
Kia Sportage -3,999
Another win for Kia’s beloved crossover as the Sportage takes the crown for the best-selling car for the month yet again.
The Sportage is a good-looking and practical family crossover that benefits from a decent driving experience and Kia’s seven-year 100,000 warranty. Build quality is up there with the very best, and there is plenty of standard equipment on every model available in the range.
Nissan Qashqai – 3,633
Built in Britain, the Qashqai has become a landmark car on our shores and it’s easy to see why. Not only is it very practical, but it also now is very efficient thanks to its optional e-Power hybrid powertrains which reduces overall running costs for private and company car buyers.
The Qashqai is also generously equipped and now with a recent facelift with improved on-board technology and tweaked exterior styling, will make the Nissan even more popular among buyers.
Ford Puma – 3,418
Though once the nation’s favourite, the Fiesta has been consigned to the history books and the alternative is now the Puma. Underneath its skin shares all the mechanicals and chassis with the much-loved supermini, but it houses a more lofty SUV look.
The Puma has been hovering around the best-sellers list for some time now and the reason is because it offers a lot of upsides. It’s great fun to drive, has generous equipment levels and is very cheap to run and has efficient engines.
Volvo XC40 – 3,055
The only Volvo to make it into the top 10 is the XC40. The compact SUV has been around since 2018 and in that time it has found a lot of homes over here in Britain.
The XC40 is a very likeable car as it offers plenty of space and safety for a growing family. Volvo knows a thing or two about how to build and design a car that will protect you and your occupants well, should an incident happen. It also looks good and has aged very well in its six-year existence, too.
Volkswagen Golf – 3,009
Still seen as the benchmark of all the small family hatchbacks, the Golf represents excellent all-round refinement, build quality and practicality.
With a recent facelift, Volkswagen has also listened to its customers on what they want and now the Golf has physical steering wheel buttons and a larger, clearer infotainment screen with standard ChatGPT voice assistance.
It may not deliver the most exciting of experiences, but the Golf still leads the way in what most small family hatchbacks should do, and that is to offer a practical, efficient and good-to-drive car in a small package.
Hyundai Tucson – 2,917
The sister car to the best-selling Kia Sportage, the Tucson is still a hit with British buyers. Its wild and wacky styling may be subjective to a lot of people, but there is no denying that the Hyundai is a great car with plenty of powertrains available.
In fact, you can get the Tucson with petrol, hybrid and plug-in hybrid options, which is great for many different buyers to suit their everyday needs.
Volkswagen T-Roc – 2,578
The T-Roc has made it onto the best-sellers list again, and that’s because people like its higher driving position compared to the beloved Golf and there are plenty of options and engines to choose from.
It may not drive as well as some of its rivals and the interior design might appear a bit bland to some, but it’s still a good-looking SUV that is refined and reasonably cheap to run, making it popular among young families.
Nissan Juke – 2,553
Nissan’s Juke is a car which seems to have unending popularity. This small crossover is a common sight on the UK’s roads and is one of Nissan’s most in-demand models, owing to its efficient engine setup and cleverly packaged interior.
It shouldn’t be too long before Nissan unveils plans for its upcoming electric Juke, too, which is destined to be built at the firm’s Sunderland plant.
Volkswagen Polo – 2,541
Smaller, more efficient petrol cars have seen a resurgence of late in the new car market as buyers seek out models that won’t cost the earth to run. A prime example of this is the Volkswagen Polo, which delivers space and practicality in a package that’ll prove relatively inexpensive to fuel and insure.
The Polo also gets plenty of good materials alongside some handy technology. A well-sized boot only works to make the Polo even more usable.
MG HS – 2,445
MG’s range of cars has always focused on affordability and that ethos has only become stronger as the years have passed. While it has put a big emphasis on electric cars, it’s the HS – which is available as a plug-in hybrid and a ‘regular’ petrol – which has made an entry on this month’s best-sellers list.
It’s MG’s largest SUV and, as a result, has the most amount of space to offer alongside plenty of in-car tech and some decent materials throughout. A recent update will only work to make the HS even more popular, too.