Thinking of buying an EV? It’s about to get more expensive

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The cost of an electric vehicle (EV) - including second hand cars and hybrids - looks set to rise. Experts explain why ...

Motorists thinking of buying an electric car risk losing hefty discounts unless they act sooner rather than later.

The cost of an electric vehicle (EV) – including second hand cars and hybrids – is set to rise significantly as it is likely that mandated sales targets for manufacturers will be watered down.

EV makers currently offer discounts of several thousand pounds on cars and SUVs – the average discount last year was £2,800 – in order to meet the targets.

These discounts could take a significant cut if manufacturers are not under so much pressure to sell their stock, experts say.

And, separately, if the Government decides to align with EU tariffs on Chinese EVs as part of efforts to get closer to Europe, it could add £12,600 to the cost of a Chinese model priced at £30,000. EVs produced in China are typically among some of the cheapest on the market.

Experts says the lowest price for electric cars is likely to be “right at this moment” and that they expect them to increase from 2027 and beyond.

Higher prices may lead to fewer sales of new cars which would also feed through into the second-hand market, reducing the supply of vehicles on sale and checking the reduction in prices in this market.

The Government’s Zero Emissions Vehicle (ZEV) mandate requires car makers to ensure that 33 per cent of the new cars they sell in 2026 are electric, with the target rising each year to 80 per cent by 2030. Manufacturers that fall short face a £12,000 fine for every vehicle they miss the target by, although there are ways to avoid penalties, such as buying credits from rivals that exceed their targets or offsetting emissions elsewhere in their vehicle fleets.

Companies that sell more EVs than required can earn extra income by selling these credits to manufacturers struggling to meet the targets. If the Government lowers the EV sales targets as expected, demand for the credits would fall, pushing down their value.

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