Ballymoney Chronicle - Features - Reduce the Price of Your New Car with a UK Hybrid Grant

Features

Reduce the Price of Your New Car with a UK Hybrid Grant

Thursday, 17 February 2011

Hybrid cars are on the rise in terms of popularity. With an ever growing choice of options and the declining cost of greener vehicles, now could be the time to become more environmentally friendly.

Over the past number of years there has been a torrent of new plug-in and hybrid vehicles available. Such an influx of competition has seen prices drop to around £16,000, with the latest Honda Jazz car recently becoming the cheapest on the market.

Now, if that wasn't enough of a good reason to convert, the government is also ready to offer you up to £5,000 off the price of a new car, given that it is better for the environment.

Lately, surveys have shown an increase in hybrid or electric customers and very recently, vehicle valuation company, Glass, found that out of almost 400 motorists, 36 per cent were thinking about converting.

Unsurprisingly, the proportion of respondents that would consider the change rose to 53 per cent when they were informed of the government's Electric Vehicle Plug-in Car Grant. When given the same question just one year previously, only 0.5 per cent of those asked said they would think about buying an electric car and just 8 per cent would ponder a hybrid.

The grant was launched in January, though only a limited number of cars qualify for the scheme. Many of the vehicles that will meet the required specifications are yet to be released; however, the majority of them are due early this year.

Eligible vehicles for the subsidy must be either battery electric (BEV or EV), plug-in hybrid (PHEV) or a hydrogen fuel cell car; the vehicle must also have a maximum speed of up to 60mph.

To qualify, PHEV cars cannot release in excess of 75 g/km in carbon emissions and BEVs may not discharge any at all. Furthermore, the minimum electric-only range for BEVs must be at least 70 miles and just 10 miles for PHEVs.

Although the scheme was originally brought in by the previous government, the grant will still be available despite the coalition's rise to power last May.

Spending cuts by the coalition government had many eco-friendly members of the public worried that the austerity drive would see the scheme scrapped. However, the government is desperate to decrease the UK's emissions and has committed to an allocation of £43 million.

The fund will only be available between January 2011 and March 2013, so if you are thinking of buying a greener vehicle, it would make much more financial sense to make sure you don't miss the window. Although, should the scheme be a success, there could be a chance it will be extended or re-introduced in the future.

However, many people may think that the reduction will be hard to get; though it does not involve the same fence-hopping expected when attaining any regular grant.

When you need to apply for a government initiative you may expect to spend long hours filling in countless forms or waiting in busy offices. However, the garage where you purchase the vehicle should be aware of the scheme and will fill in any paperwork for you, instantly reducing the cost at the point of purchase.

If a large reduction on the cost of a new motor doesn't quite swing it for you, many are usually surprised to hear that some electric and hybrid cars are exempt from further expenses such as road tax or parking. In fact, some cars are even exempt from the infamous London Congestion Charge.

Furthermore, the rising cost of fuel will eventually start hitting your pocket harder. Due to the rising shortages in oil supplies the world over; it will eventually become much more economically viable to invest in a hybrid vehicle.

On average it takes around 40 per cent less fuel per year to run a standard hybrid car, over the course of the year that could translate in to thousands of pounds, dependant on your circumstances. Moreover, an electric-only car may only cost £2 to fully charge, which will usually take you over 60 miles.

To put that into perspective, say a standard driver notches up around 2,000 miles a year at £1.25 per litre with an engine that burns 55 miles per gallon. By the end of the year he will have spent roughly £205. Had he been driving a hybrid (around 85 miles per gallon), he would have spent around £132; that is an approximate saving of 35 per cent.

So, perhaps now is the time to start thinking about alternate energy sources for our every day commute? As vehicle prices begin to steadily drop, the fringe benefits and yearly savings of investing in hybrid or plug-in technology become much more financially desirable.