Plug-In Hybrid Sports Cars To Lose Subsidies In UK

1 year ago by Steven Loveday 10

Porsche Panamera S E-Hybrid

Porsche Panamera S E-Hybrid

This month, some of the most generous government subsidies for plug-in hybrid cars in the UK will go away for vehicles over £60,000 ($84,918).

Purchasers of these rather expensive plug-in hybrids will no longer be able to reap the benefits of a £5,000 ($7,077) discount.

Mercedes-Benz S 500 PLUG-IN HYBRID

Mercedes-Benz S 500 PLUG-IN HYBRID

The government changes will cut other incentives as well. Fully-electric grants will be reduced by £500 ($708), to a total of £4,500 ($6,369). Subsidies for PHEVs will be cut in half, reducing it to £2,500 ($3,538). This affects cars like last year’s best seller, the Mitsubishi Outlander PHEV.

Toby Mitchell of Mitsubishi noted:

“Dealers are reporting a huge increase in interest, as buyers are looking to order before the grant reduces.”

Examples of cars affected by the “Supercar” pricing limit:

  • BMW i8 – £104,540 ($147,955)
  • Mercedes S 500 e luxury saloon – £89,290 ($126,372)
  • Porsche’s Panamera S E-Hybrid sports car – £82,439 ($116,676)

One can only hope or assume that those buying cars in the above price range won’t be too deterred by the loss of the “small” discount.

Source: Driving

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10 responses to "Plug-In Hybrid Sports Cars To Lose Subsidies In UK"

  1. Brian says:

    Getting £5,000 off for a car with 15-20 miles of range was kind of silly to begin with.. I guess take advantage of any discount that you can before it goes away?

  2. BigBrian says:

    Fair enough really

    1. Alpha777 says:

      Not really. These large cars are big guzzlers and big polluters. And they haven’t taken off yet. They’re not that popular.

      So, no, this decision does not benefit society, it has a negative effect on society.

      Secondly, we’ve seen in the used car market that these discounts are passed on to the second buyer in the form of lower used car prices.

      1. Surya says:

        Really? I always see LOTS of Outlander PHEVs in the UK

  3. Just_Chris says:

    These cars benefit most from the benefit in kind tax rules with the plugin grant being pretty insignificant, I think it is a good move to shift the goal posts in this instance.

    BTW the difference in BIK tax on a Panamera PHEV and the V8 is about 9,000 pounds (12,000 USD) in the first year of ownership. That assumes the car is a company car, I suspect that a lot of them are. The intial price of both vehicles is the same.

    After 2 years of ownership the total cost of the base petrol model is the same as the PHEV (i.e. including tax and cost of vehicle the PHEV is the cheapest model offered after 2 years). That assumes you care about the base price because if the company is buying the car you’ll probably only be focused on what it adds to your tax bill rather than the upfront cost.

  4. Stephen says:

    This change was brought actually in on 1st March.

  5. Alpha777 says:

    Where ever there’s oil and money in politics there’s Bad Policy.

  6. Surya says:

    It only makes sense to give a lower grant to PHEVs and not to expensive cars.
    The government should help people who can use the help (not the rich) to buy the cars that help the most (EVs). This change reflects that.

    1. Just_chris says:

      The government should tax the life out of gas guzzlers not give grants to people to buy new cars. If you are buying a new car you are by definition not poor.

      1. Surya says:

        I see where you’re coming from, but if you are rich enough to buy a new car, but not rich enough to buy an EV, but you do want to do the right thing, isn’t it a good thing that the government makes it possible to make that choice?
        Government uses subsidies to do all kinds of things, I don’t understand why people look down on incentives for EVs. Where I live there’s been incentives for low emission vehicles for a long time, and no one complained when those were introduced.