A HUGE PROBLEM NOBODY HAS SPOTTED AMONGST EV CHAOS
Well, she’s only gone and done it, haven’t she? Can’t believe it. When I heard that Rachel Reeves was on about charging a pence per mile on EVs and plug-in hybrids, I thought it’s the most ridiculous thing I’ve ever heard. And part of you kind of thinks, is that just a bit of hearsay, a bit of noise, something that isn’t likely to happen, but is is has been leaked for some reason? It was a conversation or whatever, but she’s gone and pulled the trigger on it. And this I think opens a huge huge can of worms. So if you’re not privy to what’s going on, we just had the autumn budget. Basically what they’ve said is for every mile that you drive in an electric vehicle, we’re going to charge an extra 3 p worth of tax per mile that you’ve driven in a year. So over 10,000 miles, that’s 300 quid. That is an additional tax on an EV user. Whichever way you want to look at it. Now bearing in mind when you buy an EV, you inherently more likely to pay VD because there are more expensive cars. bed being vehicle excise duty. It’s another 500 quid a year for the first 5 years. And we’re living in a country where we’ve got the some of the most expensive energy prices in the world. It’s starting to make it less and less popular. Now, the thing that surprised me the most that is what she’s decided to do is go for the plug-in hybrid market as well. So, that’s charging an extra 1.5 p driven over every 10,000 mi. It’s going to cost you 150 quid. This is a government that are trying to go net zero and push people into electric cars. So, I was surprised when I heard it that it might be news. I’m even more surprised to see that it’s actually gone ahead. Now, forgive me for where I’m sat at the moment because you’re used to seeing me ranting in my office. We’re currently out filming in Norfolk. And if you are a proper petrol head, which I’m hoping you are if you follow this channel, you might recognize where we are. There’s going to be some interesting stuff moving forwards. Uh because I’ve been speaking to a really interesting bloke all day who is very, very not Eevee. Now, I think the biggest problem that we’re going to have here that nobody’s talked about really isn’t necessarily this pricing people out of an EV market, but is not even the fact that they are completely contradicting what they’re saying with the additional cost of EV running by saying they’re going to put 200 million quid into building the infrastructure in order to allow you to buy an EV and be charged more tax. The the whole thing is absolutely mental. I think the biggest problem here are two things. Number one, how are they going to police it? Because there are different ways of checking mileages of cars, isn’t there? So, first of all, you can use uh things like vehicle score, which one of our sponsors, see what historically a mileage has been, but the main thing I’m think they’re going to use to check the mileage is probably an MOT. So, this person has driven 10,000 miles in a year. It’s an extra 300 quid. Do they add it onto their tax bill or is it a added it onto their direct debit for the DVLA tax? I don’t know how it’s going to work exactly, but the biggest problem I think with this is not necessarily the policing of it, but if they are using an MOT test to check the mileage, I think we’re all aware of something called a mileage blocker. And that is dangerous when you’re starting to push people away from necessarily being as honest as they might have been in the past. If you could save 300 quid by somebody coming up to your house with a laptop and say it’s 100 quid and I’ll make sure that you don’t have to pay 300 quid in tax. Mileage blockers and mileage correction is a big big problem in our industry. And I’ve got a sneaky feeling what the government have done here by accident is actually open a can of worms on that market. So that’s one of the problems. I think the other issue is if they are not going to use in order to police this then using a black box might be a route forward. talk about big brother and talk about GDPR issues and talk about digital IDs. So, it’s all starting to feel a little bit controlling, isn’t it? And also very, very worrying. Now, the other thing I want to bring up as well is how’s this going to affect the used car market? Because that’s obviously going to affect me as a dealer. And when I’m looking at pricing cars, I’m looking at I tend to not sell EVs personally. It’s just not something that I like to sell. I don’t I’m not enthusiastic about it. This is the sort of stuff that makes me tick. But I’ve got a sneaky feeling that because they’re pushing people away from the EV market, which they’re doing, but then at the same time saying they’re spending a load of money to encourage people to to use it. It’s it’s weird. But let’s assume they’re pushing people out of EVs. Where are they going? They’re going into used cars that are ice engines, so diesel or petrol or whatever it might be. Potentially plug-in hybrids because it’s not as savage on the tax. More people going into that market, which was, let’s face it, strangled during COVID because the new cars weren’t coming about. So there are less cars in that market than there ever been. Historically, obviously, logically, used car prices are going to go up. Now, from a business owner’s point of view, a guy who buys used cars and sells them, that might sound really attractive, but it isn’t at all. And this is the the trap that people fell into during COVID where they kind of went, “Oh yeah, used car dealers are making loads of money during COVID because the look of the price of used cars.” Incorrect. There was a good point where used cars kind of shot up and you were holding the stock, but then thereafter it was a lot more expensive to buy the cars and the margins hadn’t changed at all. You were working on the same margins. So my point of view as a used car dealer, I’m really worried from a selfish perspective that the price of my stocks just gone up. And in a world where interest rates are a lot higher than they used to be and I pay a lot more money to borrow the money to buy stock, I think the knock-on effect here for used car dealers is going to be profound. And I am actually quite concerned about a mileage blockers, b how the government are going to police this, but c used car prices in my area. I’m worried and also very confused as to what they’re trying to achieve here. Are they trying to get us into EVs or push us away from EVs? But the one thing you can say about the British public is we will vote with our feet. And I’ve got a sneaky feeling we’re going to be voting into the sort of stock that I’m trying to buy and it’s a worry. Be really interesting to see what your thoughts are on this. Sorry, it’s been a bit of a a random video dropped on a Wednesday night, but this is all news. I can’t believe they’ve actually done it and I’m going to be filming some random stuff now on rather incredible 22bs. Which reminds me about the Vauxhall Tigra that we’ve got on a raffle with. Now, that raffle’s due to end on Saturday. If you’ve not bought a ticket for it, it’s an absolute pile of death. We bought it for a charity auction. It didn’t really go to plan. It’s 90p a ticket and all the proceeds going to Andy’s man’s club. So, if you want to buy a ticket for the Tigra, dive on because the used car prices are going to shoot up and that might prove to be quite the worthy investment. God, what is going on in this country at the moment? It’s just getting worse and worse. Anyway, bit of a random one for you. Hope you’ve enjoyed that on a Wednesday night. Be really, really interesting to know what your comments are on this. So, if you’ve got any feedback, drop it in the comments below. Are used car prices going to shoot up? Are we all going to end up with black boxes in our cars? or worse, they’re going to start charging mileage on ice engine cars as well. Cyprus is starting to look quite nice. Anyway, I’ll stick around. Thanks for sticking around and I shall see you on the next one. Cheers.
The dreaded UK budget has finally arrived.
With business costs going up and margins getting tighter this budget could be make or break for a lot businesses across the UK ,however, I’ll be breaking down the latest UK Budget and what it really means for those of us running car dealerships.
There’s a lot to unpack, so sit back and see how today’s Budget is set to steer the motor trade into yet another challenging year.
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