Government plans for a new mileage-based Electric Vehicle Excise Duty greatly increases the temptation for car clocking, FleetCheck is warning.
The proposal replaces lost fuel duty revenue with rates of 3.0 pence per mile for electric vehicles (EVs) and 1.5 for plug-in-hybrids, with mileage checked annually at an MOT station.
Peter Golding, CEO at the fleet software company, said eVED bills could easily run into hundreds of pounds, while adjusting mileage was cheap, simple and difficult to detect.
Lower mileage models will command higher resale prices so the incentive is to save road tax money when using an ev and also when it comes to part-exchange it.
“If you’re covering 20,000 miles a year in an EV, your eVED bill will be £600. For a few people, the ease with which that amount can be reduced will be difficult to resist.
“Despite modern digital odometers, clocking remains common and simple. Some estimates show about one in seven cars are affected and, while the equipment needed varies from model to model, it can often be bought cheaply or a no-questions-asked ‘mileage adjustment’ company found through an search online.
“Making a change can be as simple as plugging into the onboard diagnostics port and altering a number. It takes moments.”
The issue was compounded by anecdotal feedback that the overall concept of eVED was considered unfair by many drivers, he said.
“eVED is one of those ideas that sounds great when discussed by a thinktank. Because it links car use directly to tax, it appears fair. However, it misses the point that generations of drivers have been conditioned to believe that you pay VED once and then travel as far as you want. There is no real precedent for assessing car tax on levels of use.
“This is an issue that has very real potential, we believe, to increase the number of clocked vehicles on the used market. The current impetus for clocking comes from two sources – increasing the value of the vehicle or reducing lease mileage – but eVED has the potential to outstrip both of these.”
The government’s eVED consultation closes on 18 March and Peter said he expected clocking to be a key issue for discussion.
