What You Need To Know About The New Emission Tax And Mitsubishi’s Line-up

The automotive industry is currently in a transitionary period. Over the past decade, we have seen a rise in the viability of electric powered vehicles. Whether this is in reference to fully electric vehicles (EVs) that solely rely on a battery to power their electric motors, or plug-in hybrid electric vehicles that combine a traditional combustion engine with electric motors to provide incredible fuel efficiency and a significant reduction in emissions, an electric vehicle based future is on the card for New Zealand. While these innovations continue to refine and improve the technology year after year, the viability of EVs and PHEVs has been driven by an increased demand for low emission vehicles.

As of last year, the New Zealand Government began to roll out the Clean Car Discount to increase the number of low emission and electric vehicles in the country. The manner in which this is planned to be done is by providing financial incentives for the import of new and used light battery vehicles and light plug-in hybrid electrics. In contrast to this scheme, the New Zealand government is also looking to penalise the import of higher emission vehicles.

The First Phase of The Clean Car Discount

The first phase of this scheme commenced on the 1 July 2021 and is set to last till the 31 March 2022. The scheme is set up so that when a new or used zero or low emission vehicle is first registered in New Zealand, that vehicle is eligible for a cash rebate. In regards to zero emission battery electric vehicles, a new vehicle is eligible for a $8625 rebate while a used import is eligible for $3450. Low emission plug-in hybrid electric vehicles are eligible for a rebate of $5750 for a new import, and $2300 for a used import. In regards to the Mitsubishi lineup, the PHEV rebate applies for both the Next Generation Mitsubishi Outlander PHEV and the Mitsubishi Eclipse Cross PHEV.

Vehicles over $80,000 in value or with a safety rating less than 3 stars are not eligible for the rebate.

Phase 2 - What Happens to the Clean Car Discount After 31 March 2022?

As we draw closer to the end of this time frame, the next stage of the Clean Car Discount will come into effect from 1 April 2022. While the bill hasn’t been passed yet, there is little to indicate that it won’t go through. The changes that come along with this phase leave the current PHEV rebates untouched. This is great news, as the delayed shipment for customers that ordered the Next Generation Mitsubishi Outlander PHEV and Mitsubishi Eclipse Cross PHEV will still be eligible for their $5750 rebate.

However the next phase also includes the penalties for vehicles that exceed certain emission thresholds. This penalty is set according to the “CO2 emission ratings based on international testing protocols and calculated using the World Harmonized Light-duty Vehicles Test Procedure (WLTP)”. The implementation of this standard has an effect on a range of vehicles in the Mitsubishi lineup.

How Does this Affect Mitsubishi Customers?

So how does this work as a customer looking to purchase a vehicle from Mitsubishi after 1 April 2022? The listed prices for Simon Lucas Mitsubishi’s line up will remain unchanged. This means that as a customer you will need to apply for the rebate on your PHEV from the government once you have purchased the vehicle from us.

As the tax on emissions is paid when the vehicle is first registered by us, it’s inclusion will now be added as part of the “on road costs” when purchasing a vehicle. This means that the sticker price of our offerings will remain the same, but the on road costs will increase. Simon Lucas Mitsubishi believes that this is the most transparent means of implementing these changes.

Depending on the aforementioned WLTP, the additional tax is calculated on multiple factors including the vehicle’s CO2 emissions and fuel efficiency. This means that the overall tax differs from vehicle to vehicle, and will even vary between the different variations of a specific model. For instance, the Mitsubishi ASX 2.0P Black Edition 2WD CVT has an additional tax of $580, while the 2.4L Petrol VRX variant has an additional tax of $1040. The Mitsubishi Eclipse Cross 1.5 TC XLS AWD has an additional tax of $460, but the PHEV variant is eligible for a $5750 rebate.

A significant portion of Mitsubishi’s line up remains unaffected by this new bill and will face no price adjustment.

Now is the Best Time to Secure a Mitsubishi Vehicle

While the window of opportunity may be rapidly closing, now is the best time to purchase a vehicle from Simon Lucas Mitsubishi. This is because you can currently take advantage of all of the positive elements of the Clean Car Discount with none of the negatives. If you were to secure a new Mitsubishi PHEV, you would be eligible for your rebate through the scheme. On the flipside, the current penalties for higher emission vehicles are not yet in place, so now may be the final time you will ever see some of the most popular models from our line-up available at this price to you.

While the implementation of the Clean Car Scheme is not set in stone, it is Simon Lucas Mitsubishi’s understanding that the current state of the bill is most likely the one to go into effect as of 1 April 2022. There is a chance that changes will be made, but if such a thing were to happen we shall remain vigilant in staying up to date to keep our customers informed. Furthermore, we have spent time to inform all of our team on the details of this new change and they are all well versed in clearing up any questions you may have. If you are looking to purchase a Mitsubishi in 2022, these new standards will apply to your purchase, so if you’re after additional information get in contact with the expert team at Simon Lucas Mitsubishi today.

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