Rumour is OLEV will be changed in November budget… could go down to £30k list? Reduce to £2k?

Cocijo

Cocijo

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A dealer I was chatting to said there might be changes to the OLEV grant in the November budget. Of course it could go back up too! It does have an impact on how dealers set their prices too as well as obviously the consumer. Anyone heard anything?
 
Flatcoat said:
Yes, read same in a few places. My guess is it will be reduced now EV sales are gathering momentum.
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I agree, but with the COP26 summit just around the corner and the statement on the news tonight, about putting more money into pushing electric cars and charging infrastructure to reach "Zero Emissions".
You would expect the government to increasing the grants for electric cars, NOT by reducing them.
It is my belief that MG are holding "Off" from setting the price on the ZS EV face lift, until they see what the budget / government decide to do regarding grants etc.
A quote from Sky News 19.10.2021 :-
'In strategy documents released on Tuesday, the government says it will invest £620m in grants for electric vehicles and street charging points."

This going to be a juggling act for MG alright !.
 
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Have they released the new grant figures yet as it’s all over the news tonight, but no specific’s have been mentioned to the best of my knowledge yet?
 
lebelinconnu said:
I assume it won't affect vehicles ordered but not delivered??
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Already asked the question on the Monday night Pod Cast !.
Miles believes that when MG set's the price for the face lift ZS EV it will include any increase they had planed for January 2022.
MG's shipping costs have increased by 600% and therefore a price rise is going to happen in Jan.
Has anybody seen the mail shot from MG that states, that if you take a test drive in a ZS EV or a MG 5 or HS PHEV and then place an order, and take delivery BEFORE the end of 2021 - you will receive £750 off the price of your car.
Well, that's interesting because there are NO new ZS EV's available as yet ???.
Dealers are not even expecting the Demo's to the end of November ????.
So, this may imply that they are willing to honour this deal - maybe.
The pricing of the ZS EV face lift is juggling match.
A lot rides on getting it right, if they want to repeat the popularity of the original model.
 
Depending how the grant is affected may lead to some cancelled orders. Skoda have been quite clever in pricing the new Enyaq low and having a selection of options. By approaching this way the list price stays below the grant threshold - for entry level cars anyway. Of course it can make car production more complicated though. I do feel that most manufacturers inflated their prices anyway to take into account the grants available.
 
Cocijo said:
Depending how the grant is affected may lead to some cancelled orders. Skoda have been quite clever in pricing the new Enyaq low and having a selection of options. By approaching this way the list price stays below the grant threshold - for entry level cars anyway. Of course it can make car production more complicated though. I do feel that most manufacturers inflated their prices anyway to take into account the grants available.
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Yeah - I totally agree !.
They are playing the numbers game.
Offer a stripped down poverty version to get it under the £35,000 grant threshold ( as its stands at the moment ) then offer the nice bits as options.
Remember, if you add the "Bit's" in is taken into account and if it burst's the now £35,000 grant threshold, you loose the grant.
I think the government have rumbled this plan and are making switches to clamp it down.
A bit like the grant for having a wall box fitted, inflate the price to suck in the grant !.
 
does anyone know what happens to order that have been placed but not delivered in that circumstance?
lebelinconnu said:
I assume it won't affect vehicles ordered but not delivered??
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I looked at what they did last time and basically the dealer had to apply for the grant based on the order and then it was fixed. They even had a set number of orders after the changes that they could make. All seemed fairly reasonable. Only rule was the car had to be delivered within 9 months. If it isnt that there will be other things the dealer has to worry about. 😂😂
 
Lovemyev said:
I agree, but with the COP22 summit just around the corner and the statement on the news tonight, about putting more money into pushing electric cars and charging infrastructure to reach "Zero Emissions".
You would expect the government to increasing the grants for electric cars, NOT by reducing them.
It is my belief that MG are holding "Off" from setting the price on the ZS EV face lift, until they see what the budget / government decide to do regarding grants etc.
This going to be a juggling act for MG alright !.
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But they have already announced removing the grant for home installations of charging points. They are instead offering landlords and tenants the next round of discounts. So you don't know what they might plan for the car grant. Mike confirmed on the podcast that they were waiting to see what happened before announcing prices as well as seeing what happens with these pandemic price fluctuations.
 
Lovemyev said:
Yeah - I totally agree !.
They are playing the numbers game.
Offer a stripped down poverty version to get it under the £35,000 grant threshold ( as its stands at the moment ) then offer the nice bits as options.
Remember, if you add the "Bit's" in is taken into account and if it burst's the now £35,000 grant threshold, you loose the grant.
I think the government have rumbled this plan and are making switches to clamp it down.
A bit like the grant for having a wall box fitted, inflate the price to suck in the grant !.
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I don’t think the total cost with extras is the qualifying number - it’s the list price before extras for the gov grant. For example the Kia Soul is under £35k unless you add two tone paint which lifts it to over £35k but it still qualifies for the grant.
 
Cocijo said:
I don’t think the total cost with extras is the qualifying number - it’s the list price before extras for the gov grant. For example the Kia Soul is under £35k unless you add two tone paint which lifts it to over £35k but it still qualifies for the grant.
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Araaarh !.
What about this 🤷‍♂️.
Clear as mud 🥴 .

Are options, packs and modifications included in the £35,000 eligibility cap?​

With the cap now reduced to £35,000, it is expected that this definition still stands. The following can and cannot be used to calculate this price:

Included:

  • VAT, including VAT reclaimable by a business;
  • Vehicle manufacturer or dealer’s mandatory extras including delivery charges or administration fees;
  • The battery cost (including where the battery is leased);
  • Any non-standard option fitted by the manufacturer or dealer affecting the powertrain.
Excluded:

  • Any non-standard option fitted by the manufacturer or dealer which does not relate to the powertrain;
  • Modifications such as ‘police packs’, ambulance/fire engine modifications;
  • Modifications for disabled users;
  • Warranty/Insurance and service packages etc;
  • First registration fee and cost of first licence;
  • Discounts.
 
Cocijo said:
I don’t think the total cost with extras is the qualifying number - it’s the list price before extras for the gov grant. For example the Kia Soul is under £35k unless you add two tone paint which lifts it to over £35k but it still qualifies for the grant.
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That was correct at the time I ordered our Enyaq (May 24th, built on August 16th but not released from factory due to waiting for final chips)

The base price including paint option was £34195 and the options added took the final price to £38640 😱. Because none of the options added were regarded as performance related then we still qualified for the £2500 grant.
 
I like the Enyaq - but same old story on availability. I was quoted at least 8 Months delivery time.
 
Cocijo said:
I like the Enyaq - but same old story on availability. I was quoted at least 8 Months delivery time.
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Our original guestimate given for delivery was the end of September. If it hadn't been for the chip shortage then we would have had it by then. Disappointing but worth the wait I hope
 
I think so. I had one for a couple of days. Very nice big car. The only real negative for me was i felt it needed a bit more power - not slow but not the EV pick up that I was expecting. Apart from that a great package. The cost soon adds up though when you spec it. I got to £45k without much problem! It will be interesting to look at the performance version - when it arrives!
 
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