Vehicle leasing providers are encouraging those looking at plug-in hybrid vehicles to place their order as soon as possible to make the most of the current UK Government Plug-in Car Grant (PiCG) scheme.
With the grant system set for a shake-up from Tuesday 01 March 2016, there are only a few weeks left to get orders in before the level of government subsidy halves for PHEVs – the fastest growing alternative-fuel car market.
New rules for the PiCG see three categories come into force with only pure electric vehicles (EVs) eligible for the full £4,500 subsidy. These are models that emit less than 50 g/km CO2 and have a zero-emission range of at least 70 miles.
Categories 2 and 3 involve up to 50 g/km CO2 models with a zero-emission range of 10-69 miles and 50-75 g/km CO2 vehicles with a zero emission range of at least 20 miles respectively. These two categories will receive grants of £2,500 off the price of a car, rather than the current £5,000.
It is unclear what manufacturers will do once the new PiCG levels kick in, with some manufacturers potentially set to absorb the additional expense in the list price. There is no requirement for them to do this though so the car that you are looking at now could end up a few thousand pounds more expensive in a month’s time.
Leasing provider GKL Leasing forecast that businesses will see increases in premiums of at least £90+VAT from 1st March and are encouraging customers to make the most of these savings by placing orders before the end of February.
Sam Young, Low CO2 Business Development, Westward Leasing (GKL Bristol), said: “If you are even considering one of these vehicles this year then you need to act now. These cars are never going to be any less than now. With the delivery window so long and with the ability to pre-order for dates later in the year then the time to act is now to make things as cost effective as they will ever be.
“If you have cars doing less than 20,000 miles per year the savings available from tax benefits, urban fuel use and the great environmental benefits and image for a business makes this type of car an essential part of any fleet. So don’t get left behind and end up paying more when you realise it’s what you should have done before.”
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Image: Mitsubishi Outlander PHEV.