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The extent to which government tax decisions can influence consumers can sometimes be surprising.
More than ten years ago, when we were all encouraged to buy diesel cars, the reduction in VRT for some models led to an increase in diesel ownership.
Of course, it took some time before we realized that the emissions promised by some of the car companies were far from reality. Since then some of us have been wondering if we should ever have switched from gasoline to diesel and many of us are thinking, ‘is it time to switch to electricity?’
This week’s news that many of the cars families have become accustomed to are about to get more expensive may perhaps focus minds a bit more.
SUVs are selling like never before. The ever popular Volkswagen Passat has been purchased by the Tiguan. The Hyundai Tucson, Kia Sportage, and even larger models cost a dime on the roads.
Somehow many people have moved away from the family car and away from the SUV. Car companies love that; they are more expensive and more profitable. So sticking with our diesel SUVs is good for the industry bottom line.
They say it gives them income to invest in and develop cleaner cars, expanding the choice of electric cars.
Skeptics say the industry has been slow to push electricity forward and is instead clinging to the more profitable range of cars we’ve grown used to.
It’s no wonder, then, that the big brands are excited about the recommendations of the Government’s Fiscal Strategy Group, prompting a surge in the price of some of the most popular family car models.
The increases for the largest luxury gasoline consumers are tearful, up to € 10,000 in some cases.
Perhaps then it is time for us, as consumers, to reevaluate our choices. Do you need a diesel SUV or would a smaller gasoline car work for you? Is it time to reduce the reliability of the car? Should you finally take the plunge and go electric?
It is not just a financial consideration, but also an environmental consideration. One third of the greenhouse gases emitted in Ireland comes from transport. From airplanes to cars to trains to buses, that’s a huge number. The choices we make as consumers can have a huge impact on our emissions.
Since 2005 I have been driving diesel cars. Traveling across the country as a journalist made sense, the fuel economy is good, and long trips with the imperative of being on time are often frequent. This month, for the first time, I drove electric.
As part of a report I am working on, I decided to take a test drive for four days. It took me a day to adjust, on the third day they beat me. Unfortunately, on the fourth day he returned to the garage.
Yes, it is different. Adapt your riding style to regenerate power at every opportunity. Slow down when reaching an intersection, rather than breaking down. Loading where and when you get the chance, just in case!
But the rank anxiety he had feared was not a factor. The range of electric cars on the road is constantly growing. The latest model is the Volkswagen ID.3. Think of it as a spacious, futuristic-looking Golf. In real terms, the range when almost fully charged is around 400km. Most small gasoline cars can give a range of 600 to 700 km. Your average medium to large size diesel should do around 1,000km per tank.
At a fast charging point, the ID.3 will recharge to around 80% in half an hour. It’s time for a coffee and a sandwich and then you’re good to go for another 400kms (assuming you’re not charging from empty).
During an average weekend of driving through Dublin and up to Kildare, I recharged about three times, never fully and never for more than half an hour.
The cost of that was practically zero. I charged at two free charging points and once at a fast charging station. For the first time, as someone who drives a lot, electricity may be an option.
However, there are problems. The cargo network is long overdue. The main highway routes are relatively well served, but capacity can be an issue. If the charging points are out of use or in use, your ride becomes significantly slower. But it shouldn’t be a barrier to making the change.
The real problem is the cost. If you drive a 151 car and feel like a change, what are the options?
If you opt for a new electric car, the subsidies will take € 10,000 off the list price. There is help to install a charging point in your home. Overnight, your fuel costs drop significantly and the maintenance cost is less than half that of an ICE (internal combustion engine) car.
But electricity is still expensive. The ID.3, which is the newest model available and has a decent range and a very high build standard, with good handling and attractive looks, starts at € 34,000, that includes grants, a € 5,000 VRT discount and a SEAI grant of € 5,000.
But there are also a growing number of second-hand electric cars available. Some for as low as € 5,000, but the newer the model, the better the range.
If you are considering a change, look at the length of your average car trip. Examine your fuel bills, your maintenance costs. The road tax you pay, the VRT bill for a new diesel versus an electric one. If you make a cold economic decision, most conductors could easily go electric. But the change has been slow, there are real problems that people who make the change face.
Ireland’s targets for electric vehicle sales are so far behind it’s hard to imagine. The Green Party leader said in recent days that sales of electric vehicles would increase, because, he said, “they are just better cars.”
Eamon Ryan did it when he launched the Climate Action Bill, achieving some of the measures laid out in the new legislation will require a huge mindset shift, even for motorists.
But the change when it comes to the type of cars we drive is very slow. Industry holds the key. There is currently a limited range of electric cars available. It seems that until there is no other option, diesel and gasoline cars will be the main sellers. Perhaps the Fiscal Strategy Group sees glacial growth in the number of electric vehicles as a problem when it comes to achieving GHG (greenhouse gas) emission reduction targets.
Nothing moves consumers like savings. Other countries have implemented incentives such as free or reduced parking fees, free tolls, and other incentives beyond the VRT reimbursement and the SEAI grant.
If we feel the savings in our monthly car spending, we will change the way we do things.
One final thought, electric car drivers are now part of an elite club. On the few occasions when I was charging the car, other EV drivers came over to chat and wanted to know about the newest electric vehicle on the market. What was driving like? What is the real life range? How much did it cost? Would I stick with EV?
It was a fascinating glimpse into a world of enthusiasts, who have taken a change in behavior more seriously than most, have invested in a new way of driving.
Congratulations also to the two gentlemen who were standing admiring the shiny new wheels on the Dún Laoghaire pier when I returned from a ride, “It’s a beauty, the way to go,” commented one. “More than 40 thousand without the subsidy?” scoffed the other.
Well at least we are starting to make the switch.
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