Electric or hybrid for me through work?
The question
Hi!
I would like to ask for your help in choosing between a new electric car (price 30,000 Euro) and a hybrid car (price 24,000 Euro), taking into consideration that, due to my workplace, I am exempt from paying the VRT and the VAT. Could you please help me find out the final price I will need to pay for those two types of cars?
Thank you.
Asked by Andrew Parnwell ·
Expert answer
Hi Andrew,
That’s a tricky one as you’ve not told us the precise cars in question. The thing is, an electric car with a price of €30,000 has probably already had the VRT rebated on it, so you won’t make as big a saving — you’ll only save the VAT, which will represent a discount of around €5,000, bringing the price down to around €25,000.
With the hybrid, assuming it has CO2 emissions of under 100g/km, and therefore is in the 15 per cent VRT band, you could make a huge saving. It’s a rough guess, but we reckon you’d save €4,000 worth of VAT and €3,000 worth of VRT, bringing the price down to €17,000.
Now, these are just rough calculations, and the final, proper figures may differ, but on the face of it the hybrid model offers a better up-front saving, but then you have to work in the potential for much cheaper running costs with an electric car when it comes to fuel and servicing.
Answered by Neil Briscoe