The Best Car Finance Blog In The World

Public Accounts Committee accuses Government of having no “clear, published plan” on how the UK will switch to an electric car future…

The viability of the Government’s plan to ban the sale of new petrol and diesel cars by 2030 has been called into question by a group of MPs, who say the transition represents a “huge challenge” for the country, and that the departments responsible for it have “lacked a clear, published plan” to set out how it will happen.

The criticism comes from the Public Accounts Committee (PAC), which evaluates the effectiveness and value of Government proposals and services. The PAC is made up of 15 MPs, eight of whom are Conservatives, although the chair is Labour’s Meg Hillier.

The PAC report says that although the Government has set “ambitious targets” for the transition, there are still big hurdles to overcome, including increasing the uptake of electric cars among buyers, lowering their cost, and upgrading the UK’s charging network.

Under current plans, the sale of new petrol and diesel cars will be banned from 2030, albeit with some hybrid cars given a stay of execution until 2035. So far in 2021, electric cars have accounted for 7.2% of sales – up from 4% across the same period in 2020.

Below, we look at each of the issues raised in the report, and what’s being done to address them.

Lowering the cost of electric cars

The cost of buying an electric car is one of the biggest issues, with the committee saying it is “not persuaded that the upfront costs are low enough for many”, and pointing out that there are currently only 13 electric car models costing less than £30,000. Any fully electric car which costs less than £35,000 qualifies for the Government’s plug-in car grant, currently worth £2500.

The plug-in car grant is expected to last until at least 2023, when funding allocated for the scheme in 2020 is due to run out. To date, the grant scheme has provided more than £1 billion to electric vehicle drivers.

The cheapest electric car you can buy currently is the Seat Mii, which costs from £22,800 before the grant is factored in.

A recent What Car? survey of more than 10,000 in-market buyers showed that one-in-five were considering an electric car as their next purchase – a significant rise compared with the 8% who answered the same way in 2019.

In our survey, 31% of respondents said the biggest concern they had over going electric was range, followed by charging (18%).

Lowering the cost of charging

The PAC report says that price differences between charging using a public charging network and charging at home “need to be addressed”, as well as the cost of replacing electric car batteries. Indeed, a National Audit Office report suggests that charging at home can cost up to 78% less than relying on the public charging network.

A recent What Car? investigation found that public charging prices vary wildly, with it costing as little as £7.49 and as much as £17.46 to charge a Renault Zoe electric hatchback to 80% of capacity, depending on location, associated fees and the type of charger used.

Similarly, while the Department for Transport estimates that, on average, it costs around 1p per mile to run an electric car (compared with around 10p per mile to run a petrol or diesel) our real-world tests show that this is only the case when you’re charging at home.

In reality, we found that an electric car can cost up to 9p per mile when all of the fees associated with public charging are taken into account, while 13p per mile is realistic for a petrol car, and 11p per mile for a diesel car.

In its evidence to the PAC, the Department for Transport said that it expects “more competition in the market and innovation which may benefit customers in terms of the price paid for electricity”.

The department also suggested that some electric cars might act as energy storage devices for smart homes, and feed energy back into the grid at peak times, thus reducing energy costs.

Increasing the availability of charging points

The PAC report says that although there has been progress made to increase the number of charging points available in the UK, “take-up has been greatest where there are high levels of traffic, charge-points and affluence.”

The report notes that rural areas are in danger of getting “left behind during this transition” if they too don’t see an expansion of their local charging networks. It should also be noted that the take-up among local authorities to support the growth of on-street residential charge points has been poor, with the National Audit Office estimating that almost a third of the £8.5 million set aside has not been used.

The report says: “We are not convinced that Government has sufficiently thought through how the charging infrastructure will expand at the pace required to meet the ambitious timetable to phase out petrol and diesel vehicles.”

It says that the Department for Transport has made a number of assumptions around the type of journeys most drivers are making, noting that, according to those assumptions, 99% of journeys are less than 100 miles, the vast majority of electric car charging is done at home and overnight, and that people will use public charging stations to top up during longer trips.

Despite those assumptions, the report says there is no estimate for how many charging points the country will need to keep up with the increase in electric cars. Data from the English Housing Survey also notes that 33% of households in England do not have access to off-street parking, so could not charge at home easily.

The PAC report notes that, while the Government has pledged to offer six rapid charging points at every UK motorway service station by 2023, it has “not focused much attention on charging for people that do not have off-street parking”.

According to Zapmap, which lists every public charging station in the country, there are currently 23,873 charging points at 15,254 locations across the UK. The biggest provider of publicly available charging points is Source London, which has a market share of 25.8%, followed by Ubitricity and Pod Point, with shares of 14.7% and 12.1% respectively.

Maintenance and energy costs

Other issues raised in the PAC report include the need to re-train dealership and independent garage technicians to work on and repair electric cars, especially as these vehicles age, and a safeguarding of the National Grid to cope with an increased demand for energy.

The Department for Business, Energy and Industrial Strategy estimates that the increased demand for electric cars will equate to a 2% increase in energy bills for households by 2030, although this is money that you would otherwise spend on filling up with petrol or diesel.

What has the reaction been?

The Society of Motor Manufacturers and Traders, which represents the views of the motor industry to Government, said: “The automotive industry shares the Government’s ambition for an electric revolution, a transformation that has already begun.

However, as the Public Accounts Committee has made clear, we need a comprehensive and holistic plan to get us there in time.

“That plan must convince consumers to make the switch, it must provide the incentives that make electric cars affordable for all, and it must ensure recharging is as easy as refuelling – which means a massive and rapid rollout of infrastructure nationwide.”

When asked for comment, a Department for Transport spokesperson told What Car?: “We’ve got a highly ambitious and world-leading approach to increasing the uptake of zero emission cars, and the progress we’re making in this area will help us to meet our targets.

“Already, we’re investing £2.8 billion in helping industry and drivers make the switch – and will continue our work to install thousands of charge points and boost the development of new technologies to meet our goals.”

The reaction to the ban from buyers has been negative, with a What Car? survey conducted in November of last year – soon after the proposal was announced – revealing that 59% of buyers disagreed with the principle behind the ban, while 29% said they did not understand which cars would still be allowed to be on sale after 2030.  By Graham Hill thanks to What Car?

The Ioniq 5 family hatchback represents a real shift forward in Hyundai’s ability to chase down premium electric rivals, helping to persuade EV buyers who are motivated by stylish design, great on-board tech and practical range and charging speeds, to invest in the Korean brand.

With stunning looks and a sense of cool that sets it apart from the pack, the manufacturer has added to the Ioniq 5’s strong kerb appeal with competitive pricing, generous standard kit and advanced active safety systems. We named it our Car of the Year for 2021, so if you’re thinking of a new purchase and you have the means, then the Hyundai Ioniq 5 is one of the best cars you can buy.

We have the car on special offer this week.

About the Hyundai Ioniq 5

Over recent years, Hyundai, along with its subsidiary brand Kia, has been at the forefront of producing well-built, practical electrified family cars. Mild- or plug-in hybrid tech is offered on models such as the Ioniq and Kona, as well as the bigger Santa Fe SUV, while the former two cars are also available with the benefits of zero-emission, all-electric drive.

But, pioneering and innovative auto makers must continue to push things forward, or risk falling into EV obscurity, and that is exactly what Hyundai has done with its latest Ioniq 5 hatchback/crossover. In a move away from the architecture used so far across its electric, hybrid and combustion-engined models, the Ioniq 5 is Hyundai’s first car to use its new Electric Global Modular Platform (E-GMP) and, as a foundation for the company’s next-level EV tech, it’s mightily impressive.

Two battery choices are available across the range, along with three individual power outputs: a 58kWh battery and a single 168bhp motor driving the rear wheels provides the entry point to Ioniq 5 ownership, while the next step up includes a 73kWh version paired with a 214bhp rear-mounted motor.

The top-spec option comprises the same 73kWh battery, but uses a second motor at the front giving a total of 301bhp and a meaty 605Nm of torque.

Buyers thinking of investing in a capable family EV now have top quality options to consider. The Volkswagen ID.3 hatchback might suit smaller households, although the ID.4 is a more direct rival to the 4.6-metre long Ioniq 5 and offers more space and day-to-day practicality than its compact sibling. Meanwhile, Ford has come up with its own brilliant all-electric model, the Mustang Mach-e, which provides the typical blue oval USP of a great driving experience, as well as being easy to live with.

Hyundai provides three trim levels for the Ioniq 5: SE Connect, Premium and Ultimate. Entry-level kit is good with 19-inch alloy wheels, LED headlights, rear parking sensors, climate control and smart cruise control all included, while inside the cabin there’s a wireless smartphone charging pad and two 12.3-inch displays – one covering the infotainment and the other a digital instrument cluster providing key info for the driver.

The Ioniq 5 range starts from just under £37,000 and rises to around £48,000. An Ultimate-spec car, particularly when paired with the most powerful 301bhp dual-motor setup, brings the Ioniq 5 firmly into Tesla territory, and will also provide food for thought for those considering an Audi Q4 e-tron in a top Edition 1 or more expensive Vorsprung trim. See our special offer above. By Graham Hill thanks to Auto Express.

From September, drivers travelling abroad will have to display UK stickers instead of GB ones.

Anyone taking their car abroad from 28 September will have to display a UK sticker rather than a GB one. The change is rumoured to be a sign of solidarity with Northern Ireland from Westminster in the face of post-Brexit trade tensions.

The GB sticker has been in use for 111 years, but while it is technically valid for Northern Irish cars taken abroad, that country is not part of the geographical island of Great Britain, a detail that has irked some Northern Irish residents over the years.

But in the face of issues such as the ‘sausage wars’, the UK Government has written to the United Nations to effect the change, stating: “The United Kingdom is changing the distinguishing sign that it had previously selected for display in international traffic on vehicles registered in the United Kingdom, from “GB” to “UK”…this change will take effect on 28 September 2021.”

The switch from GB to UK stickers comes just months after ministers unveiled a new GB number plate with a Union Flag. This replaced the previous ‘Euro’ plate, which showed the stars of the European Union with the letters GB.

But the switch to UK signifiers, while being inclusive of Northern Ireland, means drivers with the new GB plates will have to either change their plates, or affix an additional UK sticker to their cars from September.

Unlike the soon-to-be-invalid GB plates, which were heralded by Transport Secretary Grant Shapps in January, the switch to UK signifiers was not formally announced by the Government.

Instead it was spotted as a footnote in UN regulations by the AA, which says it has 50,000 items of stock it will now need to change.  By Graham Hill thanks to Auto Express

Volvo is developing new battery technology that will enable it to offer cars with a real-world range of 621 miles and cut re-charge times in half.

The car maker is working with Swedish battery company Northvolt to  produce the units, which are expected to be ready by 2025.

“We want to constantly increase the customer benefits of driving a pure electric Volvo car,” said Henrik Green, chief technology officer at Volvo Cars. “By simplifying the design and integration of our battery cells, we can reduce weight and maximise space, allowing for considerable improvements in battery capacity, range and charging times.”

The next-generation Volvo XC90 will be the first car to feature the new battery technology, it is expected to be revealed next year.

As Volvo introduces its third generation of electric cars, it plans to integrate the battery pack into the floor of the car, using the cell structure for overall vehicle stiffness and improving efficiency.

Battery cells from Volvo Cars’ planned collaboration with Northvolt aim to be produced using 100 per cent renewable energy, while it is working with other battery suppliers to do the same by 2025.

Customer data to lead safety improvements

Volvo is looking towards processing data from customer cars in real time, if customers choose to share data, to help it make its cars safer.

By allowing customers to choose and be a part of improving safety levels and traffic safety in this way, Volvo says it can make “continuous and much faster” improvements to its cars.

Customer data would enable Volvo engineers to validate and verify autonomous driving features more quickly and then roll out updates over-the-air.  By Graham Hill thanks to Fleet News

Renault Group will launch 10 new battery electric vehicles (BEVs) by 2025, seven of them for the Renault brand, with a new platform promising cheaper plug-in cars.

It recently announced it was reviving the iconic Renault 5 in electric guise and says it will do the same for the Renault 4, currently named ‘4ever’.

It says it will also strengthen its presence in the all-electric C-segment, firstly with the All-New MéganE in 2022, while the Alpine ‘dream garage’ unveiled in January will become a reality, starting in 2024.

The Group aims at providing the greenest mix in the European market in 2025, with more than 65% of vehicles in the sales mix electric and electrified, and up to 90% BEVs in the Renault brand mix by 2030.

Luca de Meo, CEO of Renault Group, said: “Ten new electric models will be conceived and up to one million electric vehicles will be manufactured by 2030, from cost-efficient urban vehicles to sportier, higher-end ones.

“As well as efficiency, we bet on iconic designs such as the beloved R5 to bring the Renault touch to electrification, making electric cars popular.”

With CMF-EV and CMF-BEV platforms, the Group says it can capitalise on its 10 years’ of EV experience making dedicated EV platforms along with its highly efficient CMF-B platform.

For the C- and D-segment, the CMF-EV platform will represent 700,000 units at Alliance level by 2025. CMF-EV offers a range up to 360 miles (580km, WLTP).

This performance, it says, comes from the Group and Nissan’s engineers working on reduced friction, weight reduction and a state-of-the-art thermal management system.

In addition to performance, CMF-EV, which the All-New MéganE will be based on, offers greater driving pleasure thanks to its low centre of gravity and optimal weight distribution, a very low steering ratio allowing quick vehicle responses and a multi-link rear suspension setup, says Renault.

CHEAPER ELECTRIC VEHICLES

For the B-segment, CMF-BEV will allow the Renault Group to make more affordable BEVs. At vehicle scale, this brand-new platform will reduce the cost by 33% compared to the current generation Zoe.

This has been achieved with the interchangeability of the battery module, a right-sized powertrain of 100kW at lower cost, and all non-EV components caried-over from the CMF-B platform, it says.

CMF-BEV will offer up to 249 miles (400km, WLTP) and the platform will also feature the Group’s ‘plug and charge’ system that automatically identifies the car, driver and payment based on the NF-C 15118 regulation and secure communication protocol.

The Group has also signed a partnership with the French start-up Whylot for an automotive axial flux e-motor. This technology will first be applied on hybrid powertrains aiming to reduce costs by five per cent while saving up to 2.5g of CO2 (WLTP) for B- and C-segment passenger cars. Renault Group claims it will be the first OEM to produce axial flux e-motors on a large scale from 2025.

On top of these new technologies, the Group is also working on a more compact, all-in-one e-powertrain.

This e-powertrain integrates the e-motor, the reducer and the power electronics (One Box Project) in a single package: enabling 45% less volume in total (equivalent to the volume of the current-generation Clio fuel tank), 30% reduction in cost of the overall powertrain (this value saving being the equivalent of the e-motor cost), and 45% reduction of wasted energy on WLTP allowing an extra EV range of up to 12 miles (20km).  By Graham Hill thanks to Fleet News

Modern cars are too BIG to fit in garages… causing parking chaos as more motorists leave their vehicle on the street, new report shows. Residential streets are becoming clogged with parked cars because larger modern vehicles no longer fit in garages, a report says

Top five selling cars in the UK in the 1960s were 4ft 11in wide and 12ft 9in long

But last year the five most popular cars were 5ft 11in wide and 14ft 1 in long.

Residential streets are becoming clogged with parked cars because larger modern vehicles no longer fit in garages, a report says.

The top five selling cars in the UK in the 1960s – including models such as the slimline Ford Anglia – were 4ft 11in wide and 12ft 9in long on average, it found. But last year the five most popular cars were 5ft 11in wide and 14ft 1in long on average.

Meanwhile, private garages have largely remained the same width – 6ft 11in on average. This gives only 6in of clearance on each side when modern cars are driven in.

As a result, many more motorists are instead parking on the street, according to the RAC Foundation study.

Around two-thirds of homeowners with a garage do not use it for the purpose it was intended.

It means the amount of space occupied by modern cars on residential roads is now a third more than in the 1960s, the report found.

This is leading to increasingly clogged roads as drivers have less space to pass each other alongside parked cars, while pedestrians such as mothers with pushchairs often find footpaths are blocked.

Steve Gooding, director of the RAC Foundation, said the problem is exacerbated by the fact that there are now around 31.7million cars on Britain’s streets, compared with 7.7million in 1965.

The foundation wants the planning system to catch up with the growth in car size by allowing bigger garages to be built, which would help cut on-street parking.

Mr Gooding said: ‘Not only are cars getting bigger – there are more of them. This is putting huge pressure on roadside space. Crucially, domestic garages are also often unfit for their intended purpose.’

The five best-selling cars in 1965 were the Austin Morris 1100/1300, Ford Cortina, Mini, Ford Anglia and Vauxhall Victor. Last year they were the Ford Fiesta, Vauxhall Corsa, Volkswagen Golf, Ford Focus and Mercedes A Class. By Graham Hill thanks to the Daily Mail

A potential four million drivers have fallen asleep at the wheel at some point, a new study has revealed.

Issued by road safety charity IAM RoadSmart, the findings show that one in ten of the 1,000 motorists surveyed admitted to momentarily closing their eyes because they were so tired.

In addition, more than half of drivers also said that they were very concerned about fatigue when driving long distances. Applied to the more than 40 million licence holders registered in the UK, this equates to more than 20 million drivers.

Neil Greig, IAM RoadSmart director of policy and research, said: “Fatigue behind the wheel is a very serious problem, perhaps more concerning than previously thought of.

“It is shocking to think a potential four million drivers have closed their eyes behind the wheel because they were so tired, even if it was just for a short time. The potential carnage that could result from even one accident doesn’t bear thinking about.”

Other areas of the research highlighted further issues, with one in ten drivers admitting that they had hit the rumble strip of a road, while four in ten had turned down the heating or lowered the windows in order to prevent themselves from feeling tired.

Greig added: “Driving a long distance needs pre-planning to ensure there are plenty of available rest places and to make sure there’s enough time to complete the journey if delays are encountered.

Never drive for longer than two hours without a break and take particular care if driving when you would normally be asleep. This is even more important as the country reopens after the pandemic and not all facilities may be available yet.

“Drivers can then concentrate on staying alert behind the wheel rather than staving off tiredness by trying to reach their end destination without adequate rest breaks.” By Graham Hill thanks to Yahoo News

Some drivers have been unable to get on the road due to 1.4 million DVLA applications waiting to be processed

The Driver and Vehicle Licensing Agency (DVLA) is faced with a “catastrophic” backlog of paper applications due to social-distancing rules, and industrial action linked to Covid-19.

Strikes by the Public and Commercial Services Union (PCS) have been staged in response to what it calls “unsafe” working conditions, contributing to the mass of unprocessed applications.

More than 643 of the DVLA’s 6,000-strong workforce are reported to have had Covid, although the organisation says it has followed Government advice at every stage.

Mark Serwotka, head of the PCS, told the BBC that the backlog of 1.4 million cases could have been avoided if staff were allowed to work from home, calling it a “stain” on the reputation of the civil service: “In 21 years, I have never encountered the level of incompetence and mismanagement that is on display at the DVLA in Swansea.”

“We believe that if the department of work and pensions can deal with three million universal credit claims, if HMRC can deliver furlough scheme, if we have workers in the home office ministry of justice, devolved nations, working from home handling in some cases much more secure data so could the DVLA.”

The head of the PCS also said that the actions of the DVLA have put its workers at a significant health risk, with more than 643 confirmed Covid cases and one fatality.

However, chief executive of the DVLA Julie Leonard has denied this, claiming that staff safety has been prioritized during the pandemic:

“We have taken staff safety incredibly seriously at every point in this. Had it been easy to have more people working at home, we would have done it. Staff safety really has come first.”

A provisional deal between the DVLA and PCS recently fell through without explanation, according to Serwotka, who said: “Targeted action will continue at the DVLA unless the original deal, which both parties had agreed in principle, is back on the table.”

The DVLA has faced major criticism for some time, with some motorists left unable to drive for months, and others complaining of unreturned documents. The DVLA receives around 60,000 pieces of mail daily, but says online operations – which can be used for most of its services – are unaffected. Drivers with medical conditions often have to rely on physical documents, though, while medical professionals’ letters often required by the DVLA are also subject to delays. 

The DVLA said: “There are significant delays in processing paper applications and contacting us due to ongoing industrial action and social-distancing requirements.

Paper applications are taking, on average, up to six weeks to process, but there may be longer delays for more complex transactions.”

The agency added the people can continue to drive after submitting an application, as long as they have not been instructed not to do so by a doctor or optician. It called the strike action “disappointing”, and said PCS is “targeting services that will have the greatest negative impact on the public, including some of the more vulnerable people in society”.  By Graham Hill thanks to Auto Express.

A new course to help drivers get to grips with electric vehicles (EVs) has boosted the real-world range of a fleet’s plug-in cars by up to 20%.

TTC is giving companies and drivers the opportunity to get the most from their EVs via its new Electric Aware course.

Construction company Willmott Dixon has put its drivers through the course and says it has seen some drivers improving their EV range by 20%.

The course forms part of Willmott Dixon’s support to transition more people into EVs. It launched a new vehicle scheme in January, encouraging staff to consider EVs and it has seen ‘several hundred applications’.

More recently, it announced it was rolling out EV charge points across all its sites and offices at more than 100 locations.

“During the course we drove on a variety of roads including open country lanes, motorways and in-town traffic,” said Gary Ketch, group principal health, safety and environmental inspector at Willmott Dixon. 

“The session was adaptive with the instructor explaining how I could improve my driving and range with adjustments to my car’s settings and driving habits.”

By driving with an instructor, Ketch had the benefits of regenerative braking explained in detail and this learning came together to improve his mpkWh average energy consumption by 20% in just a few hours, says TTC.

The course is offered either as a virtual half-day classroom where drivers are educated about their vehicles, the latest EV technology and the wider electric car eco system, or via a half day or full day in-car practical driving session with an instructor.

The course ensures drivers approach their new EVs with a fresh mindset which will enable them to get the most from their new EVs, says TTC.

The Electric Aware course also provides information on the UK’s charging infrastructure, battery life and tax and grant information all with the aim of educating and dispelling fears that still exist around EV ownership.

Instructor sessions include an individual driving style assessment and recommendation on which settings to use on their EV.

Martin Starkey, product manager development and implementation at TTC, said: “This is the biggest revolution in the automotive industry for over 100 years.

“EVs require a whole new mindset towards driving and our course helps change driver habits and adapt their approach to driving which has immediate benefits on key elements like range. Hopefully, we can reduce the levels of range anxiety among EV drivers.”

A half day on-road course costs £295 and a full day £445. A half day virtual workshop costs £345.  By Graham Hill thanks to Fleet News

Audi has announced that it will phase out production of its last internal combustion engines (ICE) by 2033, with all new cars being all electric from 2026.

Production of the German manufacturer’s final newly-developed combustion engine model will start in just four years.

Audi CEO Markus Duesmann says that as part of its strategic realignment, the company is accelerating the transition to e-mobility as it aims to achieve net-zero emissions by 2050 at the latest.

He explained: “I don’t believe in the success of bans. I believe in the success of technology and innovation.

“With this roadmap, we are creating the clarity necessary to make a decisive and powerful transition to the electric age. We’re sending the signal that Audi is ready.”

The carmaker, however, expects to see continued demand in China beyond 2033 for ICE vehicles, with potentially a supply of vehicles there with combustion engines manufactured locally.

Audi says it will significantly expand its range of all-electric models, with more than 20 zero-emission models expected in its line-up by 2025.

In the meantime, it says it will also be investing all its efforts in the development of the combustion engine right up to its final discontinuation to achieve greater efficiency. “Audi’s last internal combustion engine will be the best we’ve ever built,” said Duesmann.

In terms of current plug-in product, Audi recently confirmed the new Q4 e-tron electric crossover will be priced from £40,750 and offer a range of up to 316 miles.

The new model shares a platform with the recently launched VW ID4 and Skoda Enyaq iV. It will be offered in SUV and Sportback bodystyles.

At the entry-level, the Q4 35 e-tron and the Q4 Sportback 35 e-tron use a compact 52kWh battery and a 170PS electric motor. This is sufficient for 9.0-second 0-62mph acceleration and a WLTP-certified range of up to 208 miles on a full charge.

Audi also revealed the new e-tron GT at the start of the year, a fully-electric saloon car, with a power output of 476PS, with 530PS available via ‘Boost Mode’. This means it can accelerate from 0-62mph in 4.1 seconds.  By Graham Hill thanks to Fleet News