Unless you’ve been living under a rock, you would have noticed the day-to-day finances of everyday Kiwis dominating news headlines as the country grapples with a sudden and drastic increase to the cost of living. Petrol prices have skyrocketed this month and money saving tips are being widely shared as we all adapt to new financial strains.
In one of our most recent blog posts, we divulged our top tips to help you conserve fuel and save at the pump. Despite the tax savings implemented by the Government, petrol prices now exceed many road users’ budgets, and those money saving tips may not get us as far as we would have liked.
It’s times like these that catalyse change in our spending habits. With our heavy reliance on fuel, and recent world events having mass implications on pricing (and therefore how we get about), it came as no surprise to us when RNZ reported this month that EV and Hybrid sales are “going gangbusters”. We are seeing a real time increase in electric vehicle purchases in direct correlation to the rising price of petrol.
“NZ Automotive Investments (NZAI), which owns the nationwide chain of 2 Cheap Cars, said hybrid and electric vehicles (EV) now make up nearly half of its sales, up from an average of about 20 percent. The increase has mainly come over the past fortnight” - RNZ.
It’s clear that based on these price hikes New Zealanders have concluded that the time has come to seriously consider switching to an electric vehicle. Suddenly it means that we don’t need to visit the petrol pump at all, as well as being kinder to the planet. We’ve recently highlighted the positives of going electric and you can read about them here.
Enter: The Clean Car Rebate
By purchasing a vehicle that has little to zero emissions you’re actively doing your part in helping to
reduce New Zealand’s Carbon Dioxide (CO2) output. To entice more people to make this decision, the
Government are rewarding those who do make the jump to an EV or hybrid with their Clean Car Rebate.
Their aim is to make EV’s a much more affordable option, making the decision to go green a far easier one.
New Zealand has committed to net zero emissions by 2050 and reducing emissions of land vehicles is a huge part of that. The main greenhouse gas contributing to climate change is carbon dioxide. CO2 is emitted from your vehicle engine, due to fuel combustion. Therefore the more fuel efficient your vehicle is, the less CO2 will be produced.
So what are you entitled to if you go green and what does it mean for your next car purchase?
From 1st April 2022, the Clean Car Discount will consist of rebates and fees for both new and used eligible vehicles. The higher the CO2 emissions that are emitted from your new vehicle, the higher the fee. This is in recognition of the increased environmental and economic costs they are imposing. Buyers choosing zero or low-emission vehicles may be eligible for a rebate. The lower the emissions, the greater the rebate. Vehicles with moderate emissions will not incur a fee or be eligible for a rebate.
This handy graphic will help you to establish where your new car may sit within this scheme.
Kiwis are going to want to limit additional fees put on them for purchasing older petrol vehicles, on top of paying high petrol prices. A purchase of a new vehicle with zero emissions could see you receive a rebate of $7,500 or you could get yourself a $3,000 rebate for a purchase of a used vehicle. Not only that, but it looks like you’ll be saving yourself a small fortune at the petrol pump.
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As always, at Blue Sky Finance we can help you every step of the way with your new car purchase. Give us a call today on 0800 258 375 or contact us here.