The Office for Low Emission Vehicles (OLEV) has confirmed that its Plug-In Car Grant (PICG) will finish at the end of the year, but that it will honour any deals until that date, which is yet to be confirmed.
The confirmation came after the BVRLA sought assurances from OLEV, following growing uncertainty within the leasing sector, which had led a number of companies to remove the £5,000 grant from their quotation systems.
Currently, the grant is available for vehicles emitting less than 75g/km CO2. It was originally launched in 2011 and gave motorists 35 per cent discount off the basic price of an eligible car, worth up to £5,000. In April 2015, OLEV announced that the grant would be reviewed and has now clarified that this scheme will end this year, at a date yet to be confirmed.
A new form of the Plug-In Car Grant has been confirmed, which will be based on a tiered system. Specific details are still to be announced. The government has put £200 million towards the new grant, which will run from 2015-2020.
BVRLA Chief Executive, Gerry Keaney said: “We are delighted that OLEV was able to provide this speedy and common-sense response to our members’ concerns. Losing the £5000 subsidy would have a major impact on a monthly lease rental, so leasing companies need to know that their quoted price won’t be hit because the vehicle lead time extends beyond the plug-in grant’s cut-off date.
Registrations of ultra-low emission vehicles have taken-off in recent months and the rental and leasing industry has been leading this charge. The uncertainty surrounding the grant was threatening to hike lease prices for ULEVs and reduce their appeal to prospective customers.”
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