“The obvious alternative is a technological solution, but journey tracking would inevitably and properly raise questions over privacy and civil liberties. Also, any form of hardware or software used to collect data could add significant costs for fleets and private motorists.”
Leasing companies are also paying close attention, because the proposal places responsibility for collecting mileage data on them as the registered keepers of leased vehicles.
Matt Walters, head of consultancy services and customer value at Ayvens, the UK’s largest leasing firm, said eVED could be added onto the monthly rentals for new contracts but the lack of “grandfather rules” for older vehicles will leave some customers with unexpected additional costs.
“From April 2028, we would need to obtain an accurate mileage for every single EV and PHEV already on fleet on the day the rules take effect, forecast the mileage for the next 12 months and then pass on a retrospective charge for that entire period. None of that was priced into the original contracts,” he told Autocar.
“Daily rental fleets face the most complex scenario of all: extremely high vehicle turnover and short hire periods combined with vehicle-by-vehicle mileage accountability. Without bulk reporting tools from the DVLA, it is hard to see how they [can] manage this cleanly.”
There are feasible alternatives, Walters added, suggesting a technology-neutral road-pricing system across ICE and electric vehicles, adjusting VED bands for EVs or charging VAT on public and smart home chargers.
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