Higher value EVs not eligible for £3,000 PiCG (grant) anymore!

[Iaio]

How about a M3 standard range @£35k? Aftermarket purchase of battery upgrade, maybe £5k for 100miles. Lots of early adopters could be locked into a new 2021 model and release some 2019 models into the secondhand market. Maybe off menu?

 

[imstitch]

Just had a call from the people who manage the £28K Scottish loan for domestic vehicles saying that applications will open again in the new financial year for domestic purchases but would assume that that it would be the same for Business purchases and emailed me the contact links for the Business side of things and the page in question now has a form to fill in to register for future rounds of funding,

Low carbon transport business loan

The low carbon transport business loan can help you buy new electric vehicles to reduce the carbon impact and fuel costs of their transport.

energysavingtrust.org.uk

Did you ask them if a £40K+ Tesla would still qualify? To be eligible for the loan, the vehicle also needs to be eligible for the grant from what it says so all Teslas won't get the loan if it comes back unless the terms change. Combined with the price increase of the LR+ today, it's going to be hard staying under the old £50k limit.

 

[Rivelino70]

I’ve just been told they will almost match the grant for orders delivered pre-31st March. I only ordered yesterday.
Great news !!!!!

 

[Mperkins28]

I’ve a feeling from April Tesla might offer some additional incentives for new purchases.

 

[Yev000]

If only you could reduce my tax bill like you do your car costs.

I dont understand what you mean.

 

[Threean]

It was £56,990 on Monday when I ordered my LR M3. I know this because I did the maths to see if I could stretch to one (sadly I couldn't)

It was £56,490 earlier this year and it went up £3,500 on 6th February to £59,990. I have not seen any price change since then.

 

[Irata]

It's quite possible the website was wrong a few times yesterday, as they rapidly changed it. So I wouldn't be surprised if there was a moment the performance price dropped as well by mistake, it was all quite chaotic.

 

[GeorgeSymonds]

Some dodgy maths going on. Financing a car really boils down to depreciation and who takes the risk.

Lease you take no risk but no upside on lower than expected depreciation. What you pay is based on the lease companies guess on depreciation
PCP you have a back stop on depreciation, if depreciation is low you can take advantage of it, but you tend to pay more for the back stop
Loan is just a loan, you could just as well be buying outright, the cost over the term is the depreciation

All the above have arguments on how cheaply you can borrow money or the lost opportunity cost if you buy outright.

There's nothing magical here and no guarantee you get deposits back etc.

If the car is worth more than the predicted future value then Loan and PCP win, the lease company is sitting pretty with the upside
If its lower then Lease and PCP is better, much lower and a loan could put you in negative equity very easily.
If its reasonably accurate, then lease and loan win, PCP loses because you'll have effectively paid for the guarantee somewhere that wasn't needed.

Place your bets on what you think the future value will be relative to the anyone offering a lease of PCP.

 

[BarryW]

I’ve just been told they will almost match the grant for orders delivered pre-31st March. I only ordered yesterday.
Great news !!!!!

Same here, so chuffed to hear it. They helped me cancel my inventory order and refunded my deposit and put the discount onto my China-made white interior Model 3 ordered yesterday. Comes out at £41,990 instead of £44,490 as it was displaying earlier.

Very excited now and I’ve had such a great experience dealing with Tesla customer service so far.

Also hi fellow geordie!

 

[K3v1n]

Thanks for this - very interesting.

I hadn't actually considered taking a loan, but you make a compelling case. The Tesla Loan is actually at a better APR than my bank is offering so I may use that. I'm having to clear a lot of negative equity on a PCP with Audi Finance that I want to finish early in order to upgrade to a Tesla and am nervous about tying myself up again. I thought the lease option would be a good alternative, but it's dead money.

I was hoping to get a salary sacrifice LR through my work, and may still do this, however it does tie me in for a long time.

I'm now thinking that a long loan would mean I own the car straight away and would have this as an asset to trade in when I want to upgrade next time.

Has anyone on here had a Tesla financed through a Tesla loan and then traded it in early?

Cant you VT the car if on PCP assuming your near to paying half ?

 

[btc1k]

Some dodgy maths going on. Financing a car really boils down to depreciation and who takes the risk.

Lease you take no risk but no upside on lower than expected depreciation. What you pay is based on the lease companies guess on depreciation
PCP you have a back stop on depreciation, if depreciation is low you can take advantage of it, but you tend to pay more for the back stop
Loan is just a loan, you could just as well be buying outright, the cost over the term is the depreciation

All the above have arguments on how cheaply you can borrow money or the lost opportunity cost if you buy outright.

There's nothing magical here and no guarantee you get deposits back etc.

If the car is worth more than the predicted future value then Loan and PCP win, the lease company is sitting pretty with the upside
If its lower then Lease and PCP is better, much lower and a loan could put you in negative equity very easily.
If its reasonably accurate, then lease and loan win, PCP loses because you'll have effectively paid for the guarantee somewhere that wasn't needed.

Place your bets on what you think the future value will be relative to the anyone offering a lease of PCP.

Absolutely spot on.

Often hear that leasing is ‘dead money’, when the reality is no matter how you finance it you are funding depreciation.

There are no guarantees, just differing levels of risk.

Personally I’d rather have my money in appreciating assets, and rent/lease my depreciating assets.

 

[Tony Hoyle]

Cant you VT the car if on PCP assuming your near to paying half ?

Yes, but it's not likely to be much different than handing the car back at the end of the term, as the GFV is often close to 50% anyway.

 

[Durzel]

Some dodgy maths going on. Financing a car really boils down to depreciation and who takes the risk.

Lease you take no risk but no upside on lower than expected depreciation. What you pay is based on the lease companies guess on depreciation
PCP you have a back stop on depreciation, if depreciation is low you can take advantage of it, but you tend to pay more for the back stop
Loan is just a loan, you could just as well be buying outright, the cost over the term is the depreciation

All the above have arguments on how cheaply you can borrow money or the lost opportunity cost if you buy outright.

There's nothing magical here and no guarantee you get deposits back etc.

If the car is worth more than the predicted future value then Loan and PCP win, the lease company is sitting pretty with the upside
If its lower then Lease and PCP is better, much lower and a loan could put you in negative equity very easily.
If its reasonably accurate, then lease and loan win, PCP loses because you'll have effectively paid for the guarantee somewhere that wasn't needed.

Place your bets on what you think the future value will be relative to the anyone offering a lease of PCP.

Good post.

People can get a bit sniffy about people leasing, PCP, etc, “they can’t afford it “, etc.

The reality, as you point out, is that you’re making a bet on depreciation whichever way you buy the car, and the different finance vehicles (including cash) are all about risk management.

I nearly leased my M3P but couldn’t make the numbers work for me at the time, so bought outright, but leasing/PCP is totally legitimate and can be the “right choice” based on personal circumstances.

I find it a bit amusing that people can get a bit sniffy about it when in the supercar world they’re pretty much all on finance because the capital can work better elsewhere, and no one has a problem with that.

 

[Surturminn]

Absolutely, last car was £46k and lease at £350pm for 36 months - made no sense to PCP or buy. This time I’m buying the M3LR as can’t make the PCP or lease numbers work

 

[Mperkins28]

Absolutely, last car was £46k and lease at £350pm for 36 months - made no sense to PCP or buy. This time I’m buying the M3LR as can’t make the PCP or lease numbers work

That was a good deal. Was that a business lease?

 

[skippyinspace]

Did you ask them if a £40K+ Tesla would still qualify? To be eligible for the loan, the vehicle also needs to be eligible for the grant from what it says so all Teslas won't get the loan if it comes back unless the terms change. Combined with the price increase of the LR+ today, it's going to be hard staying under the old £50k limit.

I didnt but the website implies cars under £50K but clicking the link takes you to the £35K car list., I also completed the form and asked the question there. But I know its not applicable to Tesla but it would also have a knock on to the extra grant for installing chargers

 

[dreye]

Some dodgy maths going on. Financing a car really boils down to depreciation and who takes the risk.

Lease you take no risk but no upside on lower than expected depreciation. What you pay is based on the lease companies guess on depreciation
PCP you have a back stop on depreciation, if depreciation is low you can take advantage of it, but you tend to pay more for the back stop
Loan is just a loan, you could just as well be buying outright, the cost over the term is the depreciation

All the above have arguments on how cheaply you can borrow money or the lost opportunity cost if you buy outright.

There's nothing magical here and no guarantee you get deposits back etc.

If the car is worth more than the predicted future value then Loan and PCP win, the lease company is sitting pretty with the upside
If its lower then Lease and PCP is better, much lower and a loan could put you in negative equity very easily.
If its reasonably accurate, then lease and loan win, PCP loses because you'll have effectively paid for the guarantee somewhere that wasn't needed.

Place your bets on what you think the future value will be relative to the anyone offering a lease of PCP.

I spent weeks looking at the benefit of each of these and a common argument was that leasing means you have nothing to show for it. I think that argument misses the points you make, which are spot on. I was going to lease, until the increase put the LR out of my reach, as owning a Tesla/EV introduced number of unknowns.

 

[imstitch]

I didnt but the website implies cars under £50K but clicking the link takes you to the £35K car list., I also completed the form and asked the question there. But I know its not applicable to Tesla but it would also have a knock on to the extra grant for installing chargers

The Website hasn't been updated aside from the note saying it's closed.

The purchased electric vehicle, motorcycle or scooter should be the only plug-in vehicle owned by the applicant and must be eligible for the ‘Plug-in grant’ funded by the Office for Zero Emission Vehicles (OZEV). This means that cars with a purchase value above £50,000 and plug in hybrid models are not eligible for the loan. A full list of eligible models can be found here.

 

[Surturminn]

That was a good deal. Was that a business lease?

Nope, personal.........Jag XF Sportback Portfolio with 250HP, actually had no issues with it and it was a nice place to be with a bit of power.....

 

[Mperkins28]

Interesting informative article from gateway2lease on grant reduction.

Changes to Plug-in Car Grant | Gateway2Lease Blog