Thinking about swapping to a zero or low-emissions vehicle? You could get a very generous electric vehicle loan from the government. There’s no time like the present!
(4 minute read)
Today we’ll be discussing:
- How to claim your interest-free electric vehicle loan
- How much you could receive
- Other available grants for zero and low-emissions vehicles
Why Offer Electric Vehicle Loans?
In 2020, Scotland met its target for reducing greenhouse gas emissions. This success was likely due to lockdown as many people were furloughed or worked from home, massively decreasing the need to travel.
Now, the government aims to push for more permanent emissions reductions by offering interest-free electric vehicle loans (EVs).
Transport Minister Jennyn Gilruth explained the move to roll-out the loans as a way to ‘ensure it’s not just the wealthiest in society who can benefit from modern EVs.”
The plan aims to improve access to EVs, particularly for businesses in rural areas where vehicles are necessary. For business owners, this means it just got a lot easier to switch to an eco-friendlier vehicle.
Claiming the Electric Vehicle Loan
So, how much exactly can you claim?
These government loans are much more generous than you might initially expect, but the exact amount depends on what kind of EV you’re buying.
The highest possible loan is £30,000 for a second-hand electric car. The average electric car costs around £44,000 when new and used ones often fall below £30,000. This means that a loan could potentially cover the entire cost of the vehicle.
For a brand-new electric car, you can apply for an electric vehicle loan of up to £28,000. This covers around 64% of the cost (based on a £44,000 car).
Smaller loans of up to £10,000 are available for electric scooters or bikes.
Other Ways to Save Money on Electric Vehicles
Meanwhile, the government in England is offering more limited grants on low-emission vehicles.
The grant (called the Plug-in Grant) offers discounts on new electric vehicles. Unlike with electric vehicle loans, you won’t have to pay anything back if your application is successful.
You can claim the grant on electric cars, vans, motorbikes mopeds and trucks
When it comes to cars, only those that cost less than £32,000 are eligible for the grant, which covers 35% of the purchase price up to £1,500. As with the electric vehicle loans, the amount you can claim depends on the type of vehicle. You could claim:
|Type of Vehicle||Percent You Could Claim||Maximum claim (£)|
|Wheelchair Accessible Car||35%||£2,500|
You can also apply for a grant to cover 75% of the cost of installing a charger for your electric vehicles at home.
Will you Make the Switch?
It looks like we’ll be seeing more and more EVs on the road in the future, will you be making a switch to a zero or low-emissions vehicle? Or have you already done so?
If you’d like to learn more about switching to an electric vehicle, or how to make your vehicles more tax-efficient, let us know!
Kind regards Ilyas