Based on the Carbuyer article covering electric cars priced below £40,000 — helping buyers avoid the Expensive Car Supplement on Vehicle Excise Duty — here’s a simple, clean list of the models highlighted:
- Renault Scenic (entry-level versions under £40k)
- Citroën ë-C3
- Skoda Enyaq (base models only)
- Hyundai Kona Electric
- Kia EV3
- Hyundai Ioniq 5 (careful spec selection required)
- Tesla Model 3 (Rear-Wheel Drive)
- Skoda Elroq
- Volkswagen ID.3
These vehicles all start below the £40,000 threshold, meaning buyers can avoid the additional VED “luxury car tax” applied from year two onwards.
DM Commentary
From a taxi and private-hire point of view, this list is becoming increasingly important. With EVs no longer exempt from road tax and the luxury car supplement catching out higher-spec models, operators now need to be far more careful with trim levels and options.
Cars like the Model 3, Kona Electric, Enyaq, and Ioniq 5 continue to make sense for high-mileage drivers — but one extra option can tip them over the £40k line and cost thousands over ownership. Expect to see more drivers deliberately choosing lower trims just to stay tax-efficient.
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