How does the electric car plug-in grant work?

The UK Government has separated the vehicles eligible for the electric car grant into seven categories (mentioned in the section below) and the discount percentage varies depending on which category the low-emissions vehicle falls into.

The electric car grant is organised by the Office for Low Emission Vehicles (OLEV) and the deciding factors on the discount are based on several factors including emissions, top speeds, warranties and safety features.

Low-emission vehicles eligible for a plug-in grant

There are various types of vehicles that are eligible for the electric car grant but the amount that the grant covers all depends on your type of vehicle and the category it falls into. There are seven categories, these are as follows:

  1. Cars - the plug-in grant pays for 35% (up to a maximum of &pound2,500) of the specified cars.
  2. Motorcycles - the plug-in grant pays for 20% (up to a maximum of &pound1,500) of the specified motorcycles.
  3. Mopeds - the plug-in grant pays for 20% (up to a maximum of &pound1,500) of the specified mopeds.
  4. Small vans - the plug-in grant pays for 35% (up to a maximum of &pound3,000) of the specified small vans.
  5. Large vans - the plug-in grant pays for 35% (up to a maximum of &pound6,000) of the specified large vans.
  6. Taxis - the plug-in grant pays for 20% (up to a maximum of &pound7,500) of the specified taxis.
  7. Trucks - there's a grant that covers 20% (up to a maximum of &pound16,000) of the cost of the specified trucks. The grant can be applied to 250 orders. Orders past 250 will receive a grant rate of &pound6,000. Grants that reach the maximum &pound16,000 are restricted to 10 per customer.

If you view the specified vehicles on the GOV website, you will see that not every low-emission vehicle is entitled to the plug-in grant. Only certain vehicles have been approved, so be sure to check the makes and models so that you can enjoy the discount of a low-emissions vehicle.

How do I apply for the electric car plug-in grant?

You do not need to worry about sending off an application for a plug-in grant, this will be done by your chosen vehicle dealership. Once you've decided on the make and model of an electric vehicle, the dealer will take into account the grant so that you can enjoy the discounted price.

You are not limited to old low-emission vehicles, the discount can be applied to new low-emission vehicles too.

How long will the electric car plug-in grant run for?

The electric car grant has been extended and will run until the end of the financial year of 2022-2023.

The plug-in grant scheme has been running since 2011 but since then, there have been adjustments made in 2018 and 2020 to keep up to date with newly manufactured electric vehicles. This has been to ensure that the grant remains focused on the models that are the most environmentally friendly.

Other grants you should know about

To take full advantage of the grants available, take a look at the grant for an electric car charger where you can enjoy up to &pound350 (including VAT) deducted from the total of an electric home charger.

An electric home charger is compact and weatherproof, and is mounted to an external wall of your home, positioned close by to where you park your car. Home charging points should always be installed by qualified professionals and normally take a few hours to install.

With both the electric car grant and the grant for an electric charger, you can save money and the planet at the same time.

Connect with Advantage Finance

Want to talk about electric car finance? At Advantage Finance, we're all for looking after drivers and the environment, which is why we offer electric car financing options to all customers regardless of whether they have good or bad credit, because we're passionate about customer satisfaction and reducing carbon emissions.

As one of the leading electric car finance companies in the UK, you can put your trust in us to provide you with tailored solutions for your EV requirements. We've assisted many people get back on the road with their electric vehicles, so contact our team to find the best electric car finance deal for you.

If you found this blog helpful, feel free to browse our previous blogs for help and advice on all things automotive, and if you have any questions, check our FAQ page for detailed answers!

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