I’m writing this article to answer a question I’m regularly asked since the Government announced in 2020 that the sale of new petrol/diesel vehicles would end in 2030. For hybrid vehicles, it will be 2035.
Should you change from teaching in a manual to an electric car now?
The answer to this question will depend on your prerogative.
If you are an environmentalist and your number 1 goal is to save the planet, then going hybrid automatic or electric might be for you.
In my opinion, the cost of electric cars right now mean your net profit will be significantly less.
Other downsides to small electric hatchback vehicles are the battery size and range, with most ranging between 150-200 miles. Although this should be enough miles for 1 day of teaching, it puts a lot of pressure on you to charge your vehicle every night.
Until the hatchbacks reach the 400-mile range like the new Teslas, I don’t think they will have a particularly good resale value later. These entry-level hatchback electric cars are the test rats for the future.
If you have the ability to charge an electric car on your drive every night and you want to help the planet, then going electric now might be for you.
However, please be aware your new electric vehicle will most likely depreciate in value far quicker than a combustion engine or hybrid vehicle.
Will the government reach the 2030 deadline?
I don’t think so. It will take at least 3-5 years for the government to get over Covid-19 and tackle a recession. I don’t think they will really address the deadline until 2025, and then they will probably extend it. They have said 2030 so that everyone has something to aim for; no date to aim for, then no point manufacturers adapting. Most car manufacturers are still manufacturing and selling diesel vehicles this year (2021), so I don’t see any urgency from them right now. They are building cars which are the most affordable and popular.
Until we see charging points at least every 50 metres on terraced streets or a solution for everyone to charge their vehicle on a public road, I can’t see the government making the 2030 changes in the law.
Should you teach in an electric car?
Many instructors are thinking the same right now, hence this article.
The problem is our clientele are still choosing manual. The DVSA’s most available data from 2019 to 2020 shows 90% of learners took their driving test in a manual car.
In theory and ideally, the ratio of manual instructors to automatic should also be approximately 90% to 10%. My concern is it’s becoming more like 20%-25% in some areas of the UK teaching in automatic, especially some areas of London.
Buying a new car now
We are going into very uncertain times, so I would approach any major investment and purchase with caution right now as everything has added inflation. The car industry, especially the used car industry, needs a correction. In May, the cost of used Mini Cooper S rose by 18% in just one month.
You can see more information on car prices rocketing, here.
If you can hold out, I would try to wait another 1-2 years before changing your car. Car prices will start to come back down and when they do start coming down new cars and nearly new cars will drop the most, with electric cars tanking and losing their value the quickest.
Recession looming
With a recession looming, I would rather be where the numbers are. It’s like playing the lottery nine times rather than just once. If and when times become hard, which it inevitably will after so much money has been printed/borrowed during the Covid-19 period, I would rather be where 90% of the enquiries are.
The potential problem we will see soon is that there will be too many automatic instructors in ratio to manual instructors out there, as many instructors think the same, hence why I have written this article.
What should you do now, then?
In my opinion, I would carry on as you are and try not to purchase a vehicle this year; or next year, we will start to see car prices returning to their usual depreciating asset status from 2023 onwards.
If you are currently teaching in automatic, you will know if we are good for the work, so no need to panic; carry on as you are.
If you are teaching in manual and want to come over to automatic, please speak to myself or Nicki first. I will give you an honest answer if we can help you. As most of you know, my loyalties lie with those loyal to the company, so I would have to look at the existing instructors we have teaching in automatic for your area and then give you an honest answer to avoid any disappointment later down the line.
I think the best time to reassess the electric car situation is around 2025. Until then, if you are busy, don’t change something that’s not broken (unless you want to go greener and save the planet, of course).
Written by Anthony Johnson
Grade A - 51/51
ORDIT Registered Trainer
