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Only three electric cars available in the UK are now priced under £30,000
Inflation and loss of grants hits affordable end of the market, with the entry price of certain models increasing by 53% in 24 months
Electric car experts call for cheaper electric car loans for used cars to help mainstream buyers make the switch
The choice of affordable electric cars is in rapid decline, leading experts to believe that mainstream consumers could soon be priced out of the electric car market if action isn’t taken soon.
Just three months ago, research from Electrifying.com revealed that there were just seven electric cars priced under £30,000; a perfect storm of inflation together with manufacturers streamlining their offering means that this number is now just three. Two years ago the total was fifteen.
The biggest increase has been the Fiat 500e, which has seen the price of the cheapest version leap from £19,995 to £30,645 - an increase of 53% since this time in 2020. This is partly as the company has deleted the entry-level model with a smaller version from its range, but the car has also had an inflationary increase of £2,650 in addition to the loss of the government grant.
Other big leapers include the Honda e, which has risen 38% from £26,660 to £36,920 for an identical model. The cheapest Skoda Enyaq is now £38,970 compared to £30,450 two years ago.
Not only this, just three all-electric models still remain below the £30,000 threshold - the MG4 at a starting price of £25,995, the Nissan Leaf at £28,995 and the MINI Electric at £29,000. MG’s ZS EV is also still on price lists at £29,495, but dealers have stopped taking orders as the car has a 14 month waiting list.
This situation comes at a time when consumers are facing higher energy bills and an increase in charging costs, both at public and home charge points. This, together with plans to introduce vehicle excise duty on electric cars from 2025, is eroding away at the affordability of zero-emission cars and undermining the government’s green agenda.
Many drivers of older petrol and diesel models will also be forced to upgrade to cleaner vehicles as local governments introduce strict new low-emission zones in urban areas.
With this in mind, making access to used electric cars is critical, which is why calls are being made for the government in England to introduce an interest-free used electric car loan. As PCP and company car leasing contracts come to an end, more electric cars will be coming to the market over the next few years, increasing supplies of used models. An interest free loan, similar to the one already in place in Scotland, could help people who would otherwise be priced out of the market.
This call is further underlined by an Electrifying.com survey of over 3,000 people, in which 43% of respondents said they would be looking to spend between £20,000 and £35,000 on a new electric car. Given the lack of choice in this bracket, Electrifying.com is calling on the government to help hard-hit consumers get into the used electric car market as quickly as possible.
Founder and CEO of Electrifying.com Ginny Buckley said:
“This is a crucial time in the switch to electric; although we’re seeing increasing sales of electric cars each month, it’s still the case that a level of affluence is needed to afford one.
“High inflation and a lack of affordable models means Britain's struggling car buyers are paying more to get behind the wheel and unless action is taken - and quickly - many hard-working people across the country risk being priced out of the electric revolution.
“If we are to bring everyone along on the journey, we need the government to step in immediately to incentivise drivers to make the switch - an interest free used electric car loan is the perfect way to do this, as it would allow people to more easily make the switch without the fear of going into unnecessary debt through high interest rates.”
