‘I’m a driving expert – used EV sales could collapse after tax change’

A top motoring expert has taken to YouTube to warn that the value of some of the could plummet in April as the increases road tax.

Whilst many motorists are planning to buy a new model before April 1 2025 in order to avoid being charged up to double the amount in (VED), are also set to see considerable price increases as their exemption comes to an end.

In , Grant from the channel highlighted that the move could see more people who own an EV that had a retail price of over £40,000 sell their model, causing an increase in supply on the used market.

He explained: “At the moment, electric vehicles pay zero [for road tax], but for April forwards, what’s going to happen is the first-year registration is only going to cost £10, but from year two it’s going to ramp up – £195 per year.

“That’s the standard rate, but here’s the thing, if that car cost more than £40,000 when new, that is going to jump to £620 because of the expensive car supplement, which accounts for about 70 percent of EVs. That supplement runs from year two to year six, it doesn’t matter if it’s a new owner, he or she will need to pick it up and pay it.”

Since 2011 all electric vehicles have been exempt from road tax in a bid to encourage more drivers to make the switch from petrol or diesel-powered cars to a cleaner alternative. However, with more EVs on the road, this exemption will officially end on April 1 2025.

In addition to having to pay the same annual rate of £195 from the second year as a petrol or diesel car, drivers with an EV that cost over £40,000 will be charged an expensive car supplement for the first five years the vehicle is on the road.

As a result, drivers of some of the most popular electric cars, including the Tesla Model Y, Polestar 2, and Audi Q4 e-tron, are due to see a £620 tax rise, with some experts predicting that a significant amount of drivers will replace their current model for a cheaper alternative.

Later in the video, Grant suggested that the generally higher cost of electric vehicles will mean many will be more expensive to tax than petrol or diesel-powered alternatives.

He added: “If you look at something like a Hyundai Kona, the electric one is going to cost you about three times more to tax it compared to its petrol equivalent, because of the price difference between the two models when they’re new.

“This, as you might expect, has called a bit of an outcry, with calls for EVs to be exempt from this higher tax payment. Personally, I’m struggling to come up with a good reason why they should be.”

In a bid to help drivers avoid the expensive car supplement, a number of car manufacturers have announced price cuts on their latest electric models.

Abarth has lowered the price of its latest 600e Scorpionissima compact crossover by £2,100. The Italian performance brand claims it will help drivers save more than £3,000 on road tax.

A wide range of car companies, including Volkswagen, Renault and Tesla, have also announced that they are developing more affordable electric models, many of which will be priced at under £20,000.