With polls predicting a change of government, it’s inevitable we’ll see the Clean Car Discount scrapped. Time to bring forward your EV decision!
With the upcoming general election on 14 October looking like it will lead to a change in government, time is running out to take advantage of the Clean Car Discount scheme. There is a narrow window of opportunity that is rapidly closing for EV and PHEV purchasers.
A New Government Will See The Clean Car Discount Scrapped
The current National opposition has pledged to scrap the discounts by 31 December if elected. ACT, National’s likely coalition partner, has pledged to do the same.
“Why should tradies be taxed to subsidise Teslas? ACT says the Clean Car Discount and Clean Car Standard should go,” said ACT MP Simon Court.
Court confirmed that the ACT Party will repeal the Clean Car Discount, Clean Car Standard, and Zero Carbon Act should it become part of the next New Zealand government.
Why You Should Act Now Before It’s Too Late
I spoke with Lance Manins, CEO of Driveline Fleet, to get his insight on why interested buyers should act now before it’s too late.
“The Clean Car Discount has been hugely successful in encouraging the uptake of EVs in New Zealand,” says Manins.
“Thanks to rebates of up to $7,015 for new EVs and $4,025 for PHEVs, we’ve seen registrations of those vehicles absolutely skyrocket over the past two years. But all good things must come to an end, and with National and ACT both promising to see the Clean Car Discount scrapped, the countdown is on for Kiwis to get in before the deadline.”
This Is What You Save By Buying Now
Manins emphasises that buyers interested in an EV or PHEV have a rapidly closing window to take advantage of thousands of dollars in rebates.
“Whether you’re looking at something affordable like a BYD Atto 3 or an MG 4, or the industry leading Tesla Model 3 or Model Y, you can save a substantial amount by getting in before 31 December.
“With some back-of-the-napkin math, if you commit to a qualifying EV today, you’d be eligible for the full $7,015 rebate. If you wait until January, that same EV will cost you $7,015 more, which translates into higher monthly payments.
“And once you factor inflation and the exchange rate into that, monthly payments could be hundreds of dollars a month higher than now. It’s a no-brainer – buy now and lock in the savings!”
How to Future Proof Your Fuel Costs
Beyond the immediate financial benefits, Manins explains why buying an EV makes sense for the future.
“Petrol prices are only headed in one direction – up. We’ve already seen the impact of the war in Ukraine and reduced refining capacity here in New Zealand pushing prices above $3 per litre. EVs protect you from that volatility with charging costs only 15% the cost of petrol.”
According to the government’s GenLess website, the energy cost of an EV is just 15% of the fuel cost of an ICE (internal combustion engine) car.
They calculated the average electricity cost per 100km to run an EV was $2.43 (excluding GST) while the average petrol cost for an ICE vehicle running on Unleaded 91 was $18.02 (excluding GST).
- EV energy cost: $2.43/100km
- ICE petrol cost: $18.02/100km
If you drive 15,000km per year, based on these numbers you would spend $3,108 (including GST) on fuel for your ICE car or $419 on power for your EV.
How to Future Proof Your Lifetime Ownership Cost
Manins continues, “Add in much lower maintenance costs without oil changes or mechanical maintenance, and EVs save you money over the long haul.”
Then there’s the environmental benefits of reduced emissions, especially as New Zealand moves towards 100% renewable electricity generation.
“Buying an EV helps do your part to fight climate change. Plus you get an extremely smooth, quiet ride with instant acceleration. What’s not to love?”
GenLess found that the total cost of owning an EV is significantly less than owning a petrol car. The average total cost of ownership for four commonly available EVs was 67.5% of the total cost of owning the petrol alternatives, at $36,772 for the EVs compared to $54,473 for the petrol cars.
Expanding Charging Infrastructure
A common concern Manins hears is charging availability.
“It’s true we need to continue expanding New Zealand’s charging network to make longer trips easier. But most charging happens overnight at home, and for daily commuting you likely don’t need to use public chargers at all. The range of modern EVs can easily cover most people’s daily needs, especially in our cities.”
He adds, “The government and private sector recognise the need for more chargers and have committed hundreds of millions towards expanding infrastructure. It’s a chicken and egg scenario – growing the fleet of EVs on the road will encourage further investment in more charging stations. So by being an early adopter, you help pave the way for wider adoption.”
Test Drive First-Hand
For those still on the fence, Manins suggests taking the opportunity to experience an EV for yourself. He says the team at Driveline have been working hard with manufacturers and dealers to collate the latest data on availability of EVs and PHEVs already in the country or about to be shipped to New Zealand.
“There’s no better way to understand the benefits than getting behind the wheel for a test drive. Feel that instant torque and how smoothly it accelerates. See how an EV could fit into your lifestyle. You may be pleasantly surprised, and you certainly don’t want to miss out on substantial savings before the year’s end.”
He concludes, “Talk to us to find out what’s available and arrange a test drive of potential EVs that interest you. Then crunch the numbers to see how the Clean Car Discount can save you thousands off the purchase price and reduce your monthly payments.
“I’m confident that taking these steps will prove driving electric is the way forward. Don’t miss this chance to go electric and get rewarded for it!”
The Future is Electric
With EVs firmly taking hold globally and here in New Zealand, Manins sees electrification as inevitable, regardless of policy changes.
EVs made up 15% of new car sales in New Zealand in June, with monthly sales doubling from the 2023 average to 2,599 vehicles.
“Charging networks and EV availability will keep improving year after year. Petrol and diesel cars will gradually fade away in favour of electrics, following the natural evolution of technology we’ve seen with TVs, computers and smartphones.
“Government rebates have helped accelerate this transition, but market forces will ensure the future is electric.”
One Final Plea
Manins closes with one final plea…
“To anyone thinking about an EV – the time to buy is right now. Take a test drive, understand your options, and make a decision before the election. You’ll lock in substantial savings from the expiring Clean Car Discount while future-proofing yourself against rising petrol prices and maintenance costs.
“Plus you’ll feel good embracing a modern, green technology that’s fun to drive. The future is bright for EVs in New Zealand – be part of leading the charge.”
BYD Atto 3 EVGet into a brand new BYD Atto 3 Standard Range at a super discounted monthly rate before the Clean Car Discount is scrapped!
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