Smart buyers, dealers and manufacturers have been given a lifeline to save expensive payments on new cars, for now.
The Government’s Office for Zero Emission Vehicles has provided clarity around the price cap definition stating cars must be priced below £35,000 RRP to be eligible for Government grants.
In particular, the price cap definition includes “any non-standard option fitted by the manufacturer or dealer affecting the capacity of the battery, drive train configuration or maximum net power”; and it does not include “any non-standard option fitted by the manufacturer or dealer which does not affect the capacity of the battery, drivetrain configuration or maximum net power”.
It means some expensive options which would push up the OTR price over £35,000 would not be counted in the assessment if they did not increase emissions, such as full leather seats or handling and safety related packs.
As recently announced, OZEV also highlighted they are “unlikely” to offer leeway for grant changes similarly to the 28 days period which was offered following the most recent changes occurred in March 2021.
This allowed dealers and manufacturers to claim at previous rates and eligibility criteria for any orders that were placed by customers in the 28 days before the grant rate change which were not logged on the portal.
Positively, OZEV confirmed they will keep the dialogue going with NFDA and member dealers.
Sue Robinson, National Franchised Dealers Association Chief Executive said, “NFDA has been working closely with the Government’s Office for Zero Emission Vehicles over the past years, especially, since the launch of our Government co-funded Electric Vehicle Approved accreditation scheme and the development of our EV working group.”
Referring to the most recent discussions, she added, “Today’s session proved extremely useful in providing retailers with further clarity around the plug-in grant, including details on the definition of price cap which not all dealers are aware of. We encourage our members to read this information carefully and contact us if they require any guidance.
“Going forward, we will continue to work closely with OZEV to best represent our members’ interests and, in turn, provide franchised dealers with clear and timely guidance”.