Why are petrol and diesel car prices increasing?
The new car industry is changing a lot. Manufacturers are focussing on producing electric vehicles (EVs) because of new emission standards from the UK Government. This means that fewer petrol or diesel cars are entering the new car market, which makes them more expensive.
Key changes in the car industry:
- Zero Emissions Vehicle (ZEV) Mandate: The UK Government requires manufacturers to produce a percentage of EVs each year. By 2024, 22% of new cars must be electric. This will go up to 80% by 2030 and 100% by 2035.
- Fewer petrol and diesel cars: To meet the ZEV Mandate and avoid fines, manufacturers are making fewer petrol and diesel cars. This reduced supply makes the remaining models more expensive.
These changes are not the only things driving up costs of vehicles; insurance, vehicle parts and servicing have all become more expensive, but we continue to offer this to all customers throughout each lease.
We’re working hard to ensure the Motability Scheme remains great value for our customers, and, on average it’s 48% cheaper to lease a car through the Scheme than anywhere else.
And, the money we make gets reinvested back to help keep disabled people moving. That’s either straight back into the Scheme, or through the Motability Foundation which supports many of our customers with grants.
