Latest news with #PaulMaric
Yahoo
24-05-2025
- Automotive
- Yahoo
Warning over growing EV graveyards as major change looms for Aussie electric car industry
A new Chinese electric vehicle sits under a tarp in a dusty Australian scrapyard. Damage to the car, although clearly visible, is relatively minor but the car has been written off. It's a scenario that has plagued some early adopters of electric vehicles in the country as challengers persist in the fledgling repair network including a lack of qualified mechanics to work on the modern cars. The BYD Atto 3 sitting under the tarp had been written off by the insurance company, ostensibly deemed too much trouble to fix. "It had only done 300 kilometres. It was basically brand new and it was rear ended," car expert Paul Maric told Yahoo News. "It had very minor rear end damage. There was no damage to the battery and no further damage to the structure of the vehicle and despite this it appears the insurer wrote off the vehicle." In the end, his electrician brother bought the car for $2,500 to repurpose the battery. Related: Warning over hidden electric car issue: 'Useless as an investment' "If you look at what is happening in electric cars in general, the repair network doesn't have the skills required at scale, and definitely not on the scale that the government wants," Maric said. "At the moment there's a lot of hoops for panel beaters to jump through to make it viable to repair an electric car, as a result of that you don't have many of them, and as a result of that it's very expensive to fix them." Nicolas Rio is the general manager at Right2Drive, a company that supplies motorists with a replacement vehicle when they're involved in an accident and it's not their fault. Because the business aims to provide a like for like replacement, it is having to stock more EVs in its fleet and is in constant contact with repairers. "We work very closely with the repair network on understanding how those processes take place," he told Yahoo. "We're starting to get more clarity on best practice, safe practice on electric vehicle repairs." He said while there is an increasing number of accredited EV repairers establishing themselves, any damage to the battery can still cause major challenges. "When there's damage to the battery that can often be a very expensive repair which may exceed the value of the car," he said. "That is a factor with electric vehicles. "But generally speaking, the repair network that supports electric vehicles is strengthening, and definitely in metropolitan areas." However there are concerns in the industry that NSW could be about to introduce a major speed bump. There is currently no coordinated national pathway for repairers to get officially certified to work on EVs. To help address that NSW Fair Trade is currently proposing changes to the state's Motor Dealers and Repairers Regulation including requiring mechanics to pass certain training courses before they're legally allowed to service and repair electric and hybrid vehicles. The changes would come into effect from July 1, and the industry says it could badly exacerbate shortages and ultimately lead to more damaged cars sitting idle in carparks and scrapyards. The CEO of the Australian Automotive Aftermarket Association (AAAA), Stuart Charity, warned this month that it would "reduce access to essential repair services and increase costs for NSW motorists". "We agree that technicians working on high-voltage vehicles must be trained and competent — and that's already happening. But this proposal creates a legislative barrier that will drastically reduce the number of qualified service providers overnight," he said. Maric said the changes could mean workers carrying out ordinary tasks like changing tyres would need to do the mandatory certification which "just seems outrageous". "We sometimes underplay the amount of energy stored in one of these batteries and how much can be discharged if you mishandle a high voltage cable, or if you penetrate a battery," he said. The batteries can discharge enough energy to kill someone, he added. "There are some real risks working on an electrified vehicle if you don't know what you're doing. So I agree we do need some [coordinated] licensing or training that people undertake, but there needs to be logical reasoning behind it." For now, NSW Fair Trading says no final decisions have been made as it continues consultation with the industry. According to the AAAA, fewer than 10 per cent of NSW automotive technicians are estimated to have completed any formal EV training. Meanwhile the state government is aiming for more than half of new car sales to be EVs and hybrids by 2030. Do you have a story tip? Email: newsroomau@ You can also follow us on Facebook, Instagram, TikTok, Twitter and YouTube.
7NEWS
02-05-2025
- Automotive
- 7NEWS
Should the next government continue PHEV and EV subsidies?
It's federal election day in Australia, and while there are a plethora of questions around what the next government could bring, we're particularly concerned about those related to cars. Specifically, we're interested in financial incentives for buyers of electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs), which have been offered for a while now, to encourage the adoption of more low- and zero-emissions by Australians. One such program has been the fringe benefits tax (FBT) exemption, which applies to all EVs and – until April 1, 2025 – PHEVs priced under the Luxury Car Tax threshold for fuel-efficient vehicles and purchased through a novated lease. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. Under the scheme, the government effectively absorbs the cost of your employer's FBT bill, which would typically be passed on to you, bringing annual savings of up to five figures. Because this has been wound back to exclude PHEVs, and the Opposition has indicated it would also roll back FBT concessions for EVs if it wins government this weekend, we figured now was a good time to ask the CarExpert team whether it thinks the next government should continue with EV and PHEV subsidies. It's a controversial issue given PHEVs had just begun experiencing a sales boom with several new vehicles hitting the market in recent months, while EV sales continue to trend downwards. So the question we asked our crew was 'should the next government continue PHEV and EV subsidies?' Let us know what you think in the comments below. Paul Maric: No Easy answer. With record cost of living pressures and families struggling to put food on the table, wasting taxpayer dollars to incentivise the purchase of new cars is yet another waste of your money that could otherwise be spent on reducing the cost of living. As I wrote earlier in the year, the government has already blown out the original budgeted amount for FBT subsidies to the tune of over $450 million per year. To think that this poorly thought-out policy should continue any longer is crazy. Nobody, and I mean nobody, that has enough money to spend up to $90,000 on a new electric vehicle requires or deserves an FBT exemption for a new toy, it's as simple as that. That $500m per year could be better spent on helping those Australians that are currently struggling to survive. It's not a pot shot at anybody that has taken advantage of this subsidy. You'd be crazy to not legally reduce your taxable income wherever possible. But nobody could sit with a straight face and claim that this money couldn't be better spent. My final point here is that if it continues, it should be opened up to used electric vehicles as well. At the moment, it only applies to new electric vehicles, which simply necessitates the further mining of materials for the production of vehicles that will become highly depreciating, disposable assets. Sean Lander: No As Paul said, no one that is considering a $90,000-plus vehicle needs government help, but there's more than just that. It's about the insane amount of taxes and charges the Australian Government puts on all new vehicles that come into Australia. Even if it falls under the luxury car tax, there are still import taxes, GST, stamp duties and more that the government collects along the journey of a car ending up in someone's driveway. If they really wanted to incentivise people to get into greener cars, they could roll back some of those, rather than offering rebates that only benefit a small percentage of the population. For those people who can't afford a $90,000 car, but want a greener footprint and don't have the option to purchase through a workplace, they could reduce the purchase price of cheaper vehicles to help someone purchase a hybrid or EV, rather than a used diesel or petrol product. For me, and many other Australians, EVs don't suit our use cases. So there is no benefit to me as a taxpayer to see a small percentage of the population be rewarded with a few dollars back in their pocket, when the vast majority of us just have to make it work at the full sticker price. Scrap the subsidies, and while you're at it, scrap the import taxes that were designed to protect an already failing local manufacturing industry. That will make all cars cheaper for everyone. Marton Pettendy: No Buyers of all vehicle types should be treated equally. But if there are subsidies for new car buyers, they should go to low-income earners in the grip of this cost of living crisis – not upwardly mobile novated leasees who can afford an $85k-plus electrified vehicle. As it stands, new car buyers will already be forced to pay even higher prices than those we're already seeing due to inflation, supply chain blockages and the 'Covid tax' hangover, as carmakers pass on emissions-related fines to consumers in the coming years – depending on which political party governs Australia after today. Nobody's arguing we don't need to incentivise demand for more efficient vehicles, but a tax that penalises the most popular, fit-for-purpose vehicle type in this country today, and indirectly promotes mostly cheap electric cars, is not in the interests of the majority of consumers. And when automotive CO2 emissions are measured by governments at the tailpipe and not over a vehicle's lifecycle, let's not kid ourselves that EVs are lowering the carbon footprints of many drivers in a predominantly 'fossil' fuelled electricity grid like ours. When you factor in emissions from mining and manufacturing, most EVs don't become environmentally friendlier than equivalent combustion-powered models until about a decade after purchase, by which time they're likely to be beyond their use-by date. There never has been and never will be just one automotive powertrain solution, whether it's petrol, diesel, hybrid, plug-in hybrid, electric, range-extender electric or hydrogen fuel-cell electric. But consumers will migrate to the most efficient vehicles that still suit their use cases, so let them vote with their feet by getting rid of not just the FBT exemption for EVs as well as PHEVs, but the FBT itself – along with the LCT, which was originally designed to protect the local car manufacturing industry we no longer have, as well as import duties on cars from countries we don't already have a free trade agreement with, plus state rego fees and fuel excise too. The latter raked in almost $16 billion for the federal government in the last financial year, but according to the AAA just 57 per cent of fuel excise revenue in the decade before the 2022-23 financial year was reinvested in public transport and road infrastructure – the purposes for which it was initially justified. So why not replace all those automotive taxes with a single road user charge that applies to all vehicles on a sliding scale based on emissions? And while we're at it, replace income tax with a royalty on all the natural resources currently exported overseas by foreign companies virtually for free, which would make all Australians as rich as they ought to be. James Wong: Yes Clearly I'm in the minority here, but as many markets around the world including Australia have proven, initial uptake and popularisation of alternative powertrains heavily relies on incentives. But, I'm willing to concede we need substantial reform around the entirety of vehicle and road user charges, and our system needs to be overhauled to be more in line with the likes of Europe and the UK. Instead of financial handouts or tax exemptions, we should have a tiered emissions class system and charge motorists accordingly – ie: cheaper registration, tolls and the like for low-emissions vehicles. The proposed road user tax for EVs should be a road user charge for all vehicles, scaled depending on a vehicle's emissions class, so it's not a half-baked revenue raiser that effectively penalises EV and PHEV owners. What I'm saying is that the numbers don't lie, and if we want to continue riding the current wave of low-emissions vehicle uptake, we need some form of concession to make it more attainable for the bulk of Australian buyers. Josh Nevett: No The federal government's incentives may have served a purpose in making EVs more affordable and attractive to own, but it's a helping hand that's no longer required. EV prices have dropped to the point where parity with equivalent ICE models has nearly been reached, and they will only become more attainable in the years to come. You can now buy a brand-new BYD Dolphin for less than $30,000, and the influx of new brands into our market has greatly improved choice in the sub-$50k bracket. What's more, the used market for EVs is growing and many are now available at bargain basement prices courtesy of steep depreciation. Quite simply, people don't need that extra push to go electric anymore, and the money would be better spent easing the cost of living pressures facing many Australians, or even on environmental initiatives that will offer more bang-for-buck. Max Davies: No I don't disagree that more people should be considering PHEVs and EVs, especially when you consider how long it's been since such vehicles first started entering the Australian market. Incentives were arguably necessary to convince people to give these cars a go at the start, but times have changed. Sales of PHEVs and EVs overseas prove there's a healthy appetite among average buyers. PHEVs and EVs are more established worldwide than they've ever been, yet despite incentives continuing until very recently, Australia has lagged significantly behind the rest of the developed world in terms of percentage uptake. This is despite Australians having access to an EV for less than $30,000 in the form of the BYD Dolphin, even if pricier options like the Tesla Model Y have sold in big numbers for several years. That suggests PHEVs and EVs themselves aren't the problem. There's no point in having subsidies for cars like these if a market isn't ready to accept them and, unfortunately, Australia isn't ready – even if people are desperate. That's because Australia's charging infrastructure is nowhere near where it needs to be to accept large-scale plug-in vehicle uptake. More chargers are popping up slowly, sure, but a quick look overseas reveals the scale of our deficit. Tesla has its nationwide Supercharger network in the USA, while China has possibly the most comprehensive EV charging network in the world. The latter is thanks to strong support from the Chinese government, partly through providing aid to its EV brands to get them up and running, but mostly through investing huge sums of money in expanding and fortifying its charging network, which makes it a lot easier for consumers to consider making the jump. In Australia, we're past the point of telling people PHEVs and EVs are good and reliable. What's needed now is a considerable expansion of Australia's charging network to be able to support these vehicles, and that's where government subsidies and incentives should go. There's already the $500 million Driving the Nation Fund, which has $39.3 million allocated for the installation of just 117 EV chargers on Australia's key highway routes. That's hardly anything when you consider charging times and the availability of traditional petrol stations. Another $60 million has been put towards EV charger installation at car dealerships and EV repairers, which doesn't directly help daily EV drivers who simply need to charge. Instead of worrying about getting people into PHEVs and EVs through incentives, funding should go into a much more concerted effort to rapidly expand Australia's public charging network. Once the infrastructure's there, the buyers will come.
Yahoo
01-05-2025
- Automotive
- Yahoo
Warning after 13,490 Ford 4WDs recalled over risk of 'injury or death'
Thousands of Ford drivers are on alert after a recall was issued for two of the most popular vehicles on Australian roads. Close to 13,500 Rangers and Everest 4WD SUVs powered by the company's 3.0-litre turbo-diesel V6 'Lion' engine have been revealed to have a potentially fatal flaw. 'Due to a manufacturing defect, the left-hand engine camshaft sprocket may fracture. As a result, the engine could stall leading to a sudden loss of motive power whilst driving,' the manufacturer said in its recall notice, which applies to 13,490 cars built between 2022 and 2025. 'A sudden loss of motive power whilst driving increases the risk of an accident, which may result in serious injury or death to vehicle occupants and other road users.' Speaking to Yahoo News Australia, Paul Maric, founder of CarExpert, said he was 'surprised' it's taken this long for Ford to pick up on the issue, and that it wasn't detected 'during the initial engineering process for the vehicle'. 'This is a vehicle that's been designed and engineered here in Australia, and Ford claims that this is an issue with a third party supplier that has supplied a camshaft sprocket to this engine that's causing these failures,' he said. Every vehicle on the recall list will need to be inspected, but they may not necessarily all need new parts. Although the repairs will be 'free of charge' for customers, Maric said the engine issue is 'disappointing given the amount of money that's been invested in this product' and that 'something as big as this could have been missed from the outset'. ⛺️ Camping couple stranded for three days on road after 4WD gets bogged 🚘 P-plater's 'stupid' 4WD decision in national park stuns Aussies 💥 Warning after Aussie couple's 'scary' caravan rollover just 50km from home The Ford Ranger is Australia's best selling car and 'a large chunk of those sales are the V6 model', Maric explained. They are primarily purchased to tow heavy items such as caravans, trailers and boats. 'There are only a small number of vehicles that have had failures, but in saying that, if a vehicle does lose power while it's driving, particularly while it's towing, you all of a sudden potentially lose power assistance to things like steering and brakes,' Maric told Yahoo, adding that while Ford hasn't confirmed 'whether that's the case', it likely would be in a 'worst case scenario'. 'I couldn't think of a worse situation to be in if you are driving 100km/h with a three-and-a-half ton caravan on the back of your vehicle, and then all of a sudden you have this loss of power. 'So if it does happen to anyone that is driving one of these vehicles, I highly recommend putting it in neutral and making your way off the motorway as safely and as soon as practical.' A spokesperson for Ford said the engine failure may occur 'with no prior warning to the driver', but despite this risk, they should 'continue to drive their vehicles as normal'. 'Dealers have been instructed to visually inspect the left-hand camshaft sprocket to identify the build date and replace the sprockets and associated parts if required,' the spokesperson told 'This service will be performed on all affected vehicles at no charge to the vehicle owner.' The recall applies to 13,490 vehicles in Australia and another 647 in New Zealand, he added. Ford will contact owners of the affected vehicles to request they visit an Authorised Ford Dealer. Do you have a story tip? Email: newsroomau@ You can also follow us on Facebook, Instagram, TikTok, Twitter and YouTube.
Yahoo
31-03-2025
- Automotive
- Yahoo
$30,000 EV change from today despite desperate pleas: 'Worst possible time'
The fringe benefits tax exemption for plug-in hybrids (PHEVs) ends today, despite experts begging for it to be extended. The 2022 policy served as a financial incentive for drivers to dump their internal combustion engines (ICE) and hop on the electric vehicle (EV) bandwagon. It helped shave tens of thousands of dollars off the cost of buying a PHEV, and, despite its success, the government has committed to ending it on Tuesday, April 1. founder Paul Maric told Yahoo Finance that PHEVs had become the perfect middle ground between ICE cars and EVs. "People are switching away from electric vehicles to plug-in hybrids," he said. Electric car drivers lose out in Coalition's $6 billion plan to lower petrol prices: 'Save $700 per year' Rare $1 coin worth up to $3,000: 'Crazy errors' Centrelink blow for millions on JobSeeker, Age Pension as federal budget denies cash boost "It's the worst time possible for this kind of thing because the people just don't want to buy electric vehicles and they're going to be removing the only real subsidy that is currently sort of gaining traction." Research released in October showed that 61 per cent of PHEV owners bought their cars specifically because of the FBT exemption. Additionally, 90 per cent said the tax break made a "big difference" in their data from the National Automotive Leasing and Salary Packaging Association also found PHEVs were the perfect "stepping stone" between an ICE and a battery-powered electric vehicle (BEV). It's because PHEVs gave drivers the best of both worlds. They can use petrol on longer journeys where they might have range anxiety or worries about where the next charger might be, and then they can switch to the battery for short trips. That's why Maric said it was such a shame that the FBT exemption was being dumped today. "When you do the sums on it, you can actually go down the path of buying a $20,000 to $30,000 more expensive electric vehicle and still have it cost the same as a cheaper vehicle once you take into account the tax benefits that you get out of it," he told Yahoo Finance. Several peak industry bodies begged for the FBT exemption to be extended well beyond April 1 as the electric car sector continued to find its feet in the market. They're worried that removing incentives will cause more people to stick with or switch back to an ICE vehicle. "We know the FBT exemption is an important tool that is helping more Australians afford and access the latest EVs," Electric Vehicle Council policy head Aman Gaur said. PHEVs have been growing in popularity, according to the Australian Automobile Association, with 7,556 sales in the December quarter, compared to 4,476 a year earlier. However, BEVs have stagnated. There were 21,331 sales in the last three months of 2024, compared to 21,474 in 2023's December quarter. National Automotive Leasing and Salary Packaging Association chief executive Rohan Martin said removing the tax cut was a "lost opportunity". "Once the bulk of people move into a plug-in hybrid, they're on their electrification journey," he said. Back in October, the government revealed that PHEVs would no longer be considered "a zero or low emissions vehicle" under FBT law and therefore wouldn't be "eligible for the electric cars exemption". The only people who will be exempt from this change will be those who continue to have a "financially binding commitment" that was in place before the April 1 deadline. That type of commitment is what's known as a novated lease. There are a few ways to ensure that the FBT can still apply to you after April 1: Optional extensions to your agreement, but it has to be for a pre-determined period of time. Breaks in novation agreements, however, the car cannot be used or available for personal use during that time off Changes to the financial obligations under the lease, which include alterations to lease payments or the residual value of the car Changed employer for FBT purposes, as that results in a new commitment to the application or availability of the car by the new employer Other changes in the pre-existing commitment for your PHEV on or after April 1, then the FBT exemption will no longer apply. Ending the exemption means car owners will likely have to fork out more for their payments, and their balloon payment at the end could be higher than expected. Maric said the second-hand PHEV market could soon be flooded with cars as people seek to offload their rides. He also said the tax change could see a shakeup in the EV industry. "I think we're going to see a big shift towards regular hybrids," he said. "People realise that that is the type of vehicle you need to buy if you want to protect your re-sale value, and if you still want the benefits of having a fuel and energy efficient vehicle. "Stepping up to a plug-in hybrid or even an electric vehicle, you're adding the complexity of having these batteries and then the charging equipment. "Whereas with a hybrid, we're seeing them hold their value extremely well, and anything electric at the moment is depreciating."
Yahoo
30-03-2025
- Automotive
- Yahoo
$30,000 EV change from tomorrow despite desperate pleas: 'Worst possible time'
The fringe benefits tax exemption for plug-in hybrids (PHEVs) ends this week, despite experts begging for it to be extended. The 2022 policy served as a financial incentive for drivers to dump their internal combustion engines (ICE) and hop on the electric vehicle (EV) bandwagon. It helped shave tens of thousands of dollars off the cost of buying a PHEV, and, despite its success, the government has committed to ending it on Tuesday, April 1. founder Paul Maric told Yahoo Finance that PHEVs had become the perfect middle ground between ICE cars and EVs. "People are switching away from electric vehicles to plug-in hybrids," he said. Electric car drivers lose out in Coalition's $6 billion plan to lower petrol prices: 'Save $700 per year' Rare $1 coin worth up to $3,000: 'Crazy errors' Centrelink blow for millions on JobSeeker, Age Pension as federal budget denies cash boost "It's the worst time possible for this kind of thing because the people just don't want to buy electric vehicles and they're going to be removing the only real subsidy that is currently sort of gaining traction." Research released in October showed that 61 per cent of PHEV owners bought their cars specifically because of the FBT exemption. Additionally, 90 per cent said the tax break made a "big difference" in their data from the National Automotive Leasing and Salary Packaging Association also found PHEVs were the perfect "stepping stone" between an ICE and a battery-powered electric vehicle (BEV). It's because PHEVs gave drivers the best of both worlds. They can use petrol on longer journeys where they might have range anxiety or worries about where the next charger might be, and then they can switch to the battery for short trips. That's why Maric said it was such a shame that the FBT exemption was being dumped tomorrow. "When you do the sums on it, you can actually go down the path of buying a $20,000 to $30,000 more expensive electric vehicle and still have it cost the same as a cheaper vehicle once you take into account the tax benefits that you get out of it," he told Yahoo Finance. Several peak industry bodies begged for the FBT exemption to be extended well beyond April 1 as the electric car sector continued to find its feet in the market. They're worried that removing incentives will cause more people to stick with or switch back to an ICE vehicle. "We know the FBT exemption is an important tool that is helping more Australians afford and access the latest EVs," Electric Vehicle Council policy head Aman Gaur said. PHEVs have been growing in popularity, according to the Australian Automobile Association, with 7,556 sales in the December quarter, compared to 4,476 a year earlier. However, BEVs have stagnated. There were 21,331 sales in the last three months of 2024, compared to 21,474 in 2023's December quarter. National Automotive Leasing and Salary Packaging Association chief executive Rohan Martin said removing the tax cut was a "lost opportunity". "Once the bulk of people move into a plug-in hybrid, they're on their electrification journey," he said. Back in October, the government revealed that PHEVs would no longer be considered "a zero or low emissions vehicle" under FBT law and therefore wouldn't be "eligible for the electric cars exemption". The only people who will be exempt from this change will be those who continue to have a "financially binding commitment" that was in place before the April 1 deadline. That type of commitment is what's known as a novated lease. There are a few ways to ensure that the FBT can still apply to you after April 1: Optional extensions to your agreement, but it has to be for a pre-determined period of time. Breaks in novation agreements, however, the car cannot be used or available for personal use during that time off Changes to the financial obligations under the lease, which include alterations to lease payments or the residual value of the car Changed employer for FBT purposes, as that results in a new commitment to the application or availability of the car by the new employer Other changes in the pre-existing commitment for your PHEV on or after April 1, then the FBT exemption will no longer apply. Ending the exemption means car owners will likely have to fork out more for their payments, and their balloon payment at the end could be higher than expected. Maric said the second-hand PHEV market could soon be flooded with cars as people seek to offload their rides. He also said the tax change could see a shakeup in the EV industry. "I think we're going to see a big shift towards regular hybrids," he said. "People realise that that is the type of vehicle you need to buy if you want to protect your re-sale value, and if you still want the benefits of having a fuel and energy efficient vehicle. "Stepping up to a plug-in hybrid or even an electric vehicle, you're adding the complexity of having these batteries and then the charging equipment. "Whereas with a hybrid, we're seeing them hold their value extremely well, and anything electric at the moment is depreciating."
