Funder Alphabet wants Government to raise the EV Expensive Car Supplement threshold to £60,000

BROKER funder and leasing company Alphabet wants the Government to raise the Expensive Car Supplement for EVs to £60,000.

To date, EVs have been exempt from the Expensive Car Supplement but Caroline Sandall-Mansergh (pictured above), Consultancy and Channel Development Manager at Alphabet (GB), believes that while the Government is right to extend to Expensive Car Supplement to include EVs from 1 April 2025, the existing threshold could slow down the UK’s move to electric over the next few years.

She is calling on the Government to raise the level of the Expensive Car Supplement.

“I don’t believe the current threshold of £40,000 is at the right level. Based on a review of Alphabet’s data relating to 3,508 quotable vehicle models, our view is that it should be raised to £60,000.”

Caroline Sandall-Mansergh, Consultancy and Channel Development Manager, Alphabet Tweet

She urged ministers to then review the level annually based on P11D values of the nationwide vehicle parc, adding: “Our data reveals that the average P11D value of quotable petrol, diesel, hybrid and EV models reviewed is £51,855 – just over 25% more than the current ECS threshold. However, if you look at 961 of quotable EV models, the average list price is £60,273. And for 81% of quotable EVs that are listed over £40,000, the average P11D equates to £66,041 which shows just how much the threshold needs to shift to be truly reflective of the market.”

Analysis by Alphabet reveals the range of EVs accessible to consumers for under £40,000 is severely restricted. But says the extension to £60,000 should only be a temporary measure, with annual reviews gradually lowering it as more affordable EVs become available.

Caroline said she was calling on the Government to implement change ahead of the Spring Statement in March 2025, and certainly before 01 April, saying it would be welcomed by the fleet and leasing industry and further assist the Government’s green mandate.

She added: “Any delay to moving the Expensive Car Supplement threshold is likely to increase drivers’ hesitancy and potential reticence from making the switch to EV, because including EVs from 01 April will mean increased cost of ownership. There is a genuine concern that drivers will decide to stick with what they know, rather than look favourably at an EV, based on the numbers available to them now.”

She believes this stance is perpetuated by misinformation and negative mainstream media coverage, which does not show the context of owning an EV and the potential longer-term savings.