The conversation around the future cost of electric motoring has taken a sharp turn since last week’s UK Budget confirmed a new mileage based tax for pure electric vehicles, and one carmaker has already moved to soften the impact.
The Budget announcement on 26 November confirmed that EV drivers will pay 3p per mile from 2028 to 2029, bringing electric vehicles into the wider taxation system for the first time.
The decision has left many drivers wondering what the long term cost of switching to electric will actually look like.
OMODA and JAECOO are offering their own early response.
Buyers of the all electric OMODA E5 and JAECOO E5 can now access a rebate equal to 20,000 miles of the future tax when the cars are purchased through their UK dealer network with approved finance.
The saving is available immediately, despite the mileage charge sitting three years down the road, and is aimed at easing early running costs for anyone weighing up an electric vehicle in the near future.
OMODA and JAECOO UK Chief Executive Gary Lan said:
“The Budget introduces a new 3p per mile EV tax from 2028 to 2029, and we want to make the transition to electric driving as smooth as possible for our customers immediately, not three or four years from now.
“Our EV Tax Rebate for the OMODA E5 and JAECOO E5 effectively covers the first few years of this new tax, giving drivers the equivalent of thousands of miles of zero cost motoring.
“These vehicles represent the forefront of electric mobility, and this initiative reflects our commitment to making clean, efficient and intelligent transportation more accessible to UK drivers from day one.”
The rebate arrives at a time when the cost of living continues to shape motoring decisions, and when many drivers are balancing upfront EV prices against long term savings on fuel and servicing.
With average annual EV mileage estimated at around 8,740 miles, the offer could account for between two and three years of the newly announced tax for many households.
The OMODA E5 has a WLTP estimated range of 267 miles from its updated 61 kWh battery, with faster charging and improved comfort features added for the new model year.
The JAECOO E5 offers up to 248 miles of range with a 207 PS motor, rapid charging capability and a 7 year warranty shared across both models.
The EV Tax Rebate is available until 31 December 2025 through OMODA and JAECOO’s network of UK dealerships, with finance agreements subject to approval.
| OMODA 5 EV 115 kW Noble 61 kWh | JAECOO 5 EV Luxury 5dr 61 kWh | ||
| OTR Cash Price | £34,565.00 | OTR Cash Price | £30,505.00 |
| Customer Deposit | £3,426.00 | Customer Deposit | £4,160.00 |
| EV Grant | £3,750.00 | EV Tax Rebate | £600.00 |
| EV Tax Rebate | £600.00 | Total Deposit | £4,760.00 |
| Total Deposit | £7,776.00 | Total Amount of Credit | £25,745.00 |
| Total Amount of Credit | £26,789.00 | Agreement Term (Months) | 48 |
| Agreement Term (Months) | 48 | Annual Mileage | 8,000 |
| Annual Mileage | 8,000 | Excess Per Mile | 9p |
| Excess Per Mile | 9p | Option to Purchase Fee | £1.00 |
| Option to Purchase Fee | £0.00 | 47 Payments | £379.00 |
| 47 Payments | £339.00 | Optional Final Payment | £10,755.00 |
| Optional Final Payment | £10,856.00 | Interest Charges | £3,423.00 |
| Interest Charges | £0.00 | Annual Fixed Interest Rate | 3.83% |
| Annual Fixed Interest Rate | 0.00% | APR | 3.90% |
| APR | 0.00% | Total Amount Payable | £33,329.00 |
| Total Amount Payable | £34,565.00 |
Representative 0.00% APR, on OMODA 5 EV 115kW Noble 61kWh
Representative 3.90% APR, on JAECOO 5 EV Pure 5dr 61kWh and JAECOO 5 EV Luxury 5dr 61kWh
Representative Example based on 8,000 miles per annum. Credit available subject to status.
UK residents 18+. Guarantees may be required.
This offer is available to Retail customers only and is not available in conjunction with any other offers unless specified.
For more information, visit the websites: omodaauto.co.uk and jaecoo.co.uk
