loveelectric reposted this
As the dust settles on last week’s Autumn Budget and as we continue to deal with the surprise Court of Appeal ruling on commission disclosure in motor finance, we’ve been reflecting on what this means for loveelectric and the transition to EVs in the UK. Starting with the Budget: Low Benefit in Kind (BiK) rates on EVs have been extended to 2028/29, and although employer National Insurance Contributions have been increased, EV salary sacrifice continues to provide significant savings for employees and companies with a compelling cost-neutral employee benefit. The Court of Appeal ruling on 25th October concluded that finance brokers, including car dealerships, must fully disclose both the amount and calculation of commission to consumers. We now face a situation where this ruling sets a stricter standard for commission disclosure than previously required by the Financial Conduct Authority (FCA). As a Certified B Corp, transparency has always been at the heart of how we operate at loveelectric. As a result of the ruling, we were forced to pause new orders while our lending partners took time to understand the implications of the judgment – causing a considerable disruption to our operations! Thankfully, after a whole team effort, we were back up and running within 24 hours, operating under a completely new pricing structure. For now, like the rest of the industry, we were pleased to learn that the Finance & Leasing Association (FLA) has urged the Supreme Court to review the recent Court of Appeal judgment while calling on the FCA to address a disparity between its commission disclosure rules and the court’s findings and remove the current uncertainty. As always, we’re here to keep personal mobility simple, sustainable, and affordable for UK businesses and their teams – that’s our commitment. #AutumnBudget #Commission #EVSalarySacrifice #ElectricCars #BCorp