The government's plan

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In 2022, the government proposed their original plan, setting a clear target of no more new petrol and diesel cars by 2030. The goal was introduced to reduce emissions and fight climate change, but this wasn’t a completely new idea.

In 2017, a deadline of 2040 was announced with a plan to ban all internal combustion engine cars as part of a wider mission to reduce emissions by 80% by 2050. This ban covered cars, vans, and trucks, and whilst existing petrol and diesel cars would still be on the road after 2030, it was suggested that their value would potentially drop.

What was encouraging as part of this announcement, was that electric vehicles which were once seen as more of a luxury, were becoming a bit more affordable, making it easier for people to make the switch to Battery Electric Vehicles (BEVs).

The government more recently announced a decision to delay the petrol and diesel ban until 2035 due to concerns around high costs, practicality issues for small businesses and the need for more charging stations.

In this revised plan, all hybrid and plug-in hybrid cars will potentially be banned from 2035. Car manufacturers have mixed opinions about the delay, with some, like Ford and Kia, opposing it, while others, like Jaguar, Land Rover, and Toyota, see it as a sensible move. It's worth noting that road tax for electric cars will begin in 2025, and older, more polluting vehicles may face higher taxes.

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What's the impact?

The government’s recent decision will bring about some key changes such as:

• Electric vehicles (EVs) becoming even more popular. 
• With more EVs on the road, the need for better charging infrastructure across the UK is becoming more of an important matter of concern.
• Car dealerships will focus more on selling EVs, and used petrol and diesel cars may lose value. 
• Gasoline and diesel demand will naturally begin to drop. 
• With the push towards EVs increasing, we can expect advancements in battery technology, which is great for EVs.

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How the vehicles industry is changing (more EVs)

These changes will also have a profound impact on the vehicle industry.

• Car manufacturers will need to focus more on electric vehicles, and hybrids will potentially be phased out. 
• The growing demand for EVs will require an expansion of charging infrastructure. 
• Used petrol and diesel cars may lose value, affecting both sellers and buyers. 
• With reduced demand for gasoline and diesel, there will be shifts in the energy sector and potential innovations in battery technology. 

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To navigate these changes, finance brokers like Bluestone are here to help consumers and businesses access financing for EVs and adapt to this evolving landscape in the vehicle industry.

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Preparing for the change

Individual consumers and businesses looking to make the shift towards an EV and installing charging infrastructure can prepare by staying informed through industry updates such as EV technology, battery and charging infrastructure innovations and the government’s ongoing plans.

The cost of EVs for individual consumers, businesses and fleets can still be a barrier, particularly for those who may not have the capital readily available to make the switch.

As an asset finance and vehicle finance broker, we can assist in finding financing options to make EVs more affordable.

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Financing your vehicle(s)

Navigating the world of vehicle finance can be daunting so seeking financial guidance or speaking to a professional can help you make the best decisions for you or your business. We are experts in vehicle finance and can help you explore the finance options available to best suit your requirements, whether you’re looking now, or in the future.

If you’re considering financing and future-proofing your vehicle(s), there are some attractive options for consumers, business owners and fleets across the market that will help you reduce your carbon footprint but also offer long-term cost savings. To take your first step towards a greener and more cost-effective vehicle, whether for yourself, your business, or your fleet, contact us today.

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