It’s widely felt that electric vehicles (EVs) are the future of transportation, offering cleaner, greener alternatives to traditional petrol and diesel cars. However, with the government’s upcoming Vehicle Excise Duty (VED) changes in April 2025, there’s a significant financial incentive to act quickly. If you’re considering leasing an EV, now is the time to make your move!
Why Are VED Changes Important for EV Drivers?
The UK government is introducing VED for electric vehicles starting from April 1st 2025. This marks a shift in policy, as EVs have historically been exempt from road tax due to their zero tailpipe emissions. The new rules aim to ensure a fair tax system as EV adoption increases.
Key Points About the New VED Rules:
- New EVs Registered After April 1, 2025:
- First-year VED: £10
- From the second year: £195 annually.
- Vehicles over £40,000 will incur an additional £410 annually (Expensive Car Supplement) for years 2 – 6.
- EVs Registered Between January 1 and March 31, 2025:
- First-year VED: £0 (Yes, zero!)
- From the second year: £195 annually with no additional supplements.
- Current EV Owners:
- Starting April 2025, existing EVs will transition to the standard VED rate of £195 annually.
Why January to March 2025 is a Golden Opportunity
Leasing an electric vehicle before 1st April 2025 can help you dodge the additional costs introduced by the new VED system. Here’s why acting now makes financial sense:
- No First-Year Tax
If you lease an EV before April, you’ll avoid the £10 first-year tax entirely. That might seem minor, but when combined with other savings, it adds up!
- No Expensive Car Supplement
EVs registered before April won’t be subject to the £410 annual luxury car tax, even if their price exceeds £40,000. Over six years, that’s a potential saving of £2,050.
- Lock in Lower Leasing Costs
Many leasing companies, like Crusader Vehicles, offer competitive rates for EVs, especially early in the year. By leasing now, you’ll secure lower monthly payments and avoid future rate increases.
The Financial Impact of Delaying
Let’s break it down with an example:
- Scenario 1: Lease an EV from February to March 2025.
- First-year VED: £0.
- From the second year: £195 annually (no supplements).
- Scenario 2: Lease an EV in April 2025.
- First-year VED: £10.
- From the second year: £195 annually.
- Additional Expensive Car Supplement: £410 annually for years 2 – 6 (if over £40,000).
Potential Savings by Leasing Early:
- Avoid £410 annually for five years = £2,050.
- Save on the £10 first-year tax.
- Total savings: £2,060 or more.
Why Choose Crusader Vehicles?
At Crusader Vehicles, we’re here to help you make the smartest financial decision. Our range of electric vehicle offers is designed to suit every budget and lifestyle. Whether you’re looking for a compact city car or a luxury EV, we’ve got you covered.
What We Offer:
- Flexible leasing options tailored to your needs.
- Access to the latest EV models from top manufacturers.
- Expert advice on navigating VED changes and maximising savings.
FAQs
- Will the new VED rules apply to used EVs?
Yes, starting April 2025, used EVs will also be subject to the standard VED rate of £195 annually. - What happens if my EV costs more than £40,000?
If your EV is registered after April 2025, you’ll pay an additional £410 annually for years 2 – 6. However, vehicles registered before April won’t incur this charge. - Are hybrids affected by these changes?
Yes, hybrid vehicles will also see an increase in VED rates based on their CO2 emissions. - Can I still save money by leasing an EV after April 2025?
While the new rules add costs, EVs still offer lower running costs and environmental benefits compared to petrol or diesel cars. Leasing remains a cost-effective way to drive an EV.
Don’t wait until it’s too late! With the VED changes kicking in this April, January through March is the perfect window to lease your electric vehicle and lock in significant savings. Avoid extra costs, enjoy the perks of EV ownership, and make a smart financial move by acting now.
Explore our full range of electric vehicles at Crusader Vehicles and start your EV journey today!
