The VRA has issue on the government’s eVED announcement.
Philip Nothard, chair, Vehicle Remarketing Association (VRA), said: ‘Our view remains that this is the wrong policy at the wrong time. Electric cars are gaining a foothold in the used sector but many buyers remain cautious and eVED delivers a massive disincentive in terms of the whole mileage based principle with the cost and complication that it brings. It really could severely damage the EV market just at the point when it should be gaining momentum.
‘The only real positive here is that the government has tried to make changes in response to motor industry objections but really, the situation is no better than before. The new measures raise more questions than answers in terms of handling of sub three year old vehicles, the risk of increased mileage fraud, change of ownership, insurance write offs, repossessions and more. Processing and management of the whole eVED system remains fraught with difficulties.
‘We recognise the taxation advantages that have been used to incentive electric car adoption can’t stay in place forever but the timing and policy here are misguided.’