BLUE SEES DRAMATIC INCREASE IN ELECTRIC VEHICLE NUMBERS

Blue Motor Finance Limited (Blue), a UK based car finance provider, authorised and regulated by the Financial Conduct Authority, No.737682, prides itself on its ability to use technology to enhance its customer experience.
In 2023 roughly only 16% of new cars sold in the UK were electric and while electric vehicles still only make up a small percentage of the cars Blue finances each month, it has seen an increased demand for the purchase of electric vehicles so far in 2024.
This increase suggests that confidence in electric vehicles is improving, but with so much in the news about the pros and cons of electric cars, combined with the government delaying its ban on the sale of new petrol and diesel cars until 2035, there is still a lack of clarity amongst consumers.
The main difference between the government’s original 2030 planned ban and the new 2035 plan is, that from 2035 any new vehicle sold must by fully electric, so no petrol, diesel or even hybrid new vehicles will be allowed to be sold, whereas the original plan made an allowance for hybrid vehicles for a few more years. Used petrol, diesel and hybrid vehicles will still be available for purchase after 2035.
The new plan has also put a lot more pressure on manufacturers, with the introduction of the Zero Emission Vehicle (ZEV) Mandate. The mandate has set targets for manufacturers starting this year, where 22% of cars produced must be electric, right up until 2030 where that target has been set at 80%. Any manufacturer that does not meet this target could potentially face financial penalties. This could drive more competitive prices and incentives for electric vehicles in the market.
As far as consumer incentives go, electric vehicles are currently exempt from paying tax, the congestion charge and ULEZ fees. However, road tax will apply from 1st April 2025 and congestion charge from 25th December 2025. The Electric Vehicle Homecharge scheme, which can offset up to £350 of the cost of a charge point, is still available but now it is now limited just to people in flats and renters. In addition to this a lot of employers are signing up to salary sacrifice schemes, to allow employees to drive electric and employers can even apply for the Workplace Charging scheme which helps cover the costs of charging sockets.
So, while things are gradually improving and consumers are becoming more confident in electric vehicles, there is still a lot of work to be done before 2035.
Tiku Patel, CEO of Blue Motor Finance commented:
“Blue are encouraged by the increase in the number of consumers looking for an electric vehicle in 2024. It suggests that consumer confidence in the technology and the charging infrastructure is continuing to improve. We hope to see the number of electric vehicles we finance continue to increase over the coming months”

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