With the government gradually phasing out diesel and petrol cars, electric vehicles (EVs) are increasingly looking like the future of motoring. But with EVs being significantly more expensive to purchase, what does this mean for the consumer?
To support the purchase of new zero-emission EVs, the government has rolled out the Electric Car Grant that makes these vehicles more accessible to consumers. If you’re potentially in the market for an EV, understanding Electric Car Grant vehicle eligibility is essential to finding the best deal for your budget.
Table of Contents
In this article, we explain:
- What the Electric Car Grant is
- How much money can be saved
- How eligibility is achieved
- The consumer benefits of attaining eligibility
- How our team can support you
What is the Electric Car Grant?
The Electric Car Grant scheme is a government subsidy designed to facilitate the shift towards electric vehicles as we gradually move away from petrol and diesel cars. Put simply, this is a financial incentive to both consumers and manufacturers to embrace the adoption of EVs, by:
- Lowering the upfront cost of EVs
- Encouraging environmentally friendly manufacturing
- Supporting the UK in meeting its net-zero goals
Where Electric Car Grant vehicle eligibility is concerned, it is automatically applied at the point of sale, which means that the discount is deducted from the vehicle’s price by the dealer.
Check out our EV carsHow much money can you save with the Electric Car Grant?
The Electric Car Grant is tiered into two bands: Band 1 and Band 2. Which band the respective vehicle falls within will depend on its overall sustainability and environmental performance. The following table breaks this down further:
| Band | Grant amount | Criteria |
|---|---|---|
| Band 1 | £3,750 | Manufacturers meet highest production standards and emissions targets. |
| Band 2 | £1,500 | Manufacturers meet minimum environmental and zero-tailpipe-emission criteria. |
What is the Electric Car Grant vehicle eligibility criteria?
Vehicles must meet certain criteria to be given the Electric Car Grant vehicle eligibility seal of approval. Essentially, it boils down to three key elements: price, functionality, and sustainability.
This therefore means that vehicles must meet the following criteria to be deemed eligible:
- Recommended Retail Price (RRP) must not exceed £37,000
- Be a new car
- Be fully battery-electric
- Meet sustainability targets – including both on-road and production emissions
You should be aware that only specific trims and models are approved, which you can find on the official government list.
What are the benefits of attaining Electric Car Grant vehicle eligibility?
Cars that have attained Electric Car Grant vehicle eligibility spells good news for consumers. By gaining additional support from the government via this grant, it opens doors that otherwise may have been closed by offering significant financial benefits when purchasing an electric vehicle.
We outline several of the main benefits below.
Lower up-front cost
Depending on whether the car you are interested in purchasing falls within Band 1 or Band 2, the price reduction of the EV’s up-front cost will vary between £1,500-£3,750. Due to the grant being applied for directly by the dealer, buyers can avoid any complicated paperwork and see the price reduction from the outset.
This lower up-front cost therefore sees great financial benefits, including:
- Reducing the need for higher deposits on finance plans
- Lowering monthly PCP/HP payment plans
Lower total cost of ownership
In terms of running costs, electric cars work out cheaper – especially with many home charging tariffs offering night rates of 5-10p/kWh. And while public charging is more expensive, it is still often cheaper than both petrol and diesel.
Maintenance is also an area where you can see significant savings. According to EV Powered, electric car servicing is almost 30% cheaper than petrol or diesel, which is likely due to factors such as:
- No oil changes
- Fewer moving parts
- Less brake wear
Finally, as Electric Car Grant vehicles are under the £37k price bracket, it will automatically put them in a lower insurance group compared to more premium priced EVs.
Improved resale value
Grant-eligible EVs are acknowledged as valuable cars. This is due to reasons such as being lower-priced when new, popular among consumers, and purchased in higher volumes, while also being seen as ‘mainstream’ models.
This usually results in stronger second-hand demand, which benefits the owner with:
- Higher resale/trade-in value
- Lower depreciation
- Easier to sell privately
This makes ownership cheaper over the full life of the vehicle.
Experience exclusive perks
By owning an EV, you can also experience certain perks that you may well not have initially thought of prior to purchase.
These essentially reward you for taking an environmentally friendly approach to motoring and can include unique benefits such as:
- Reduced parking charges from certain councils
- Access clean air zones without being charged
- Potential cheaper home charger installation incentives
A competitive EV market
The Electric Car Grant is a considerable incentive for manufacturers, as it enables them to sell more EVs. To support their cars being eligible, they often take definitive steps such as:
- Introduce low-cost battery packs
- Include more trims
- Offer promotional finance
Manufacturers taking decisions such as these directly results in more deals and competition which only benefits the consumer.
Speak to our team to find out more about Electric Car Grant vehicle eligibility
Are you in the market for an EV that is eligible for an Electric Car Grant? Our team of experts are happy to guide you in the right direction by sharing the cars we have available at an outstanding price.
Speak to a member of our team todayFAQs
Are you eligible?
Our nation's Armed Forces, Veterans, Emergency Services, NHS, Police and Prison Services, Education and Social Care sectors and more form our eligible audience.
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