Vauxhall cuts EV prices in response to VED changes
Every electric Vauxhall now comes in under the £40,000 threshold for ‘luxury’ car tax, potentially saving customers over £2,000
Vauxhall has updated its price lists to ensure every one of its electric cars comes in under the £40,000 ‘expensive car’ VED tax threshold. From today (1 April), EVs are subject to road tax in the same way petrol, diesel and hybrid cars are. Previously, they were exempt.
All cars now command a flat rate of £195 per year from year two, with those costing more than £40,000 when new subject to an additional £425 for five years. Following Vauxhall’s price changes, the company claims customers could save up to £2,125 on VED alone – or as much as £2,825 if you also factor in the reduced list prices.
But while it sounds like a stellar deal, only two Vauxhall models previously exceeded the ‘expensive car’ threshold. The Vauxhall Grandland Ultimate was listed at £40,495, but a £500 price cut brings it to £39,995. The Vauxhall Astra ST Ultimate was £40,695, and now costs the same as its SUV sibling.
Eurig Druce, Vauxhall’s managing director said: “The threshold for the Expensive Car Supplement has remained at £40,000 since inception in 2017, despite subsequent high levels of inflation.
“If it were to have risen with inflation it would now be around £52,000. This new tax means that customers buying some of the more attainable electric cars on the market are now being penalised. The good news is that Vauxhall electric customers are below this new threshold.”
Vauxhall is the first to announce modest price cuts, while others may soon choose to follow suit. Manufacturers are obliged to meet a zero-emission vehicle (ZEV) mandate of 28 per cent in 2025, rising each year up to 80 per cent in 2030.
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