Drivers of electric cars should be braced for higher ownership costs as several key incentives that have fuelled the rise in EV ownership are slated to expire next year.
According to new research by Close Brothers Motor Finance, the impending changes could dampen enthusiasm for EVs, particularly among those who purchased their vehicles to save on costs.
The research, which surveyed 500 EV drivers, revealed that 54% of respondents had chosen an EV primarily to reduce running costs.
However, many of these savings are now under threat. Currently, EV owners enjoy exemptions from Vehicle Excise Duty (VED), commonly known as road tax, and the Expensive Car Supplement – a tax applied to cars priced over £40,000.
Both of these exemptions are set to end in 2025, unless the new government decides to intervene.
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