While its true that the rates for lower CO2 emitting cars was reduced, the aspect that really mattered was that it significantly affected the relative difference between otherwise broadly similar cars. IIRC, the price difference between an e90 320i SE and a 320d SE was around €5k before the change and dropped to around €2k after (in actual fact both dropped in price, but the 320d dropped by more than the 320i). That made it much easier for people to "do the right thing" - as they were being told it was - and buy the 320d that they couldn't have justified the additional relative cost of before.Originally Posted by Big H
Similarly, the fact that the full EV i3 attracts no VRT narrows the gap in price to comparable (functionally) ICE cars to overcome some of the manufacturing cost disadvantages. Now, jack up the VRT, etc. on the ICE cars to narrow that gap further, or reverse it, and suddenly people start seeing that the cost of "doing the right thing" is justifiable. That's tax policy influencing choices and habits. Watch the budget for VRT changes that encourage full EV or Hybrid choices over ICE and we'll see more people shift to EV or Hybrid. Simples....
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