His enthusiasm had since cooled.
He still supported the move to eliminate EVs’ longstanding exemption from road user charges, but he now thought there was scope for the Government to review the $76 per 1000km rate (which excludes an admin fee of $12.44 to $13.71 for each pre-paid block of mileage).
“We’re paying almost the same rate as much heavier diesel trucks,” he said. Trucks of up to 6000kg pay $82 per $1000 (EVs, in turn, typically weigh at least a third more than equivalent petrol cars, but AA fuel pricing policy expert Terry Collins told the Herald the weight difference was negligible in terms of extra road damage).
Koy told the Herald his running costs, currently 2c per kilometre, would rise to 10c per km on April 1.
He was now sympathetic with EV owners who had calculated that a fuel-efficient petrol car pays around $512 per year in fuel excise tax - compared to the $912 that EV owners will pay (if you assume each drives 13,000km, which the AA says is the average for a Kiwi motorist).
“It’s a bit unfair. It could put people off buying EVs,” he said.
Shifting gears
Regardless, he had no plans to chuck in the towel as an Uber driver.
“I’m not in it for the money. I’m in it for the freedom and flexibility,” Koy told the Herald.
The Wellingtonian said he quit his job in 2021, with his first child due.
He anticipated Uber driving would be minimum wage, but also had the security of income from two rental properties in Lower Hutt.
He bought a Tesla Model 3, helped by a $8625 Clean Car Discount (the CCD was axed by the new Government on December 31).
Easy come, easy go
Koy - who posts his weekly earnings to social media - said he calculated that an EV would be his most cost-efficient option as an Uber driver long term.
That’s partly because he figured maintenance costs would be lower - something he said had been borne out by experience as his Tesla has now clocked 134,000km with a single service costing $390.
And it’s partly because Uber - which usually takes a 28 per cent commission - takes only a 14 per cent clip of the ticket on an EV ride because it incentivises drivers to go green, with an annual cap on savings of around $5000.
Previously, Koy had pocketed the $5000. Now, “It’ll just about cover the RUCs”.
The ABCs of RUCs
- RUCs are pre-purchased in blocks of 1000km online or from the likes of VTNZ or AA.
- Pure EVs will pay $76 per 1000km, plug-in hybrids $53 per 1000km.
- There will be an administration fee of $12.44 or $13.71 each time you prepay for a block of mileage online or over the counter.
- Those same rates apply to all EVs weighing less than 3500kg (heavier electric vehicles won’t be hit by RUCs until December 31, 2025).
- Hybrids that don’t require a charge at the wall, like some models of the Toyota Prius, are exempt. E-scooters, e-bikes and electric mopeds and motorbikes are also exempt.
- An odometer reading must be given the first time you buy a block of RUCs.
- An odometer reading is then taken each time your car gets a warrant of fitness. If the odometer exceeds the RUCs purchased by the vehicle’s owner, they will be invoiced for any difference.
- There will be a two-month grace period as the new system is phased in.
- Every EV owner will receive a letter from NZ Transport Agency Waka Kotahi before April 1 explaining the system.
- An individual can be fined up to $15,000 for providing false RUC records.
- Late payment can incur a 10 per cent penalty on the amount owed.
The story headline has been updated since first published.
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.
