Electric Car Grant will help reduce EV leasing costs

The Government’s recently introduced Electric Car Grant will help lower leasing rates across the board for personal and business leasing as well as salary sacrifice takers.

The Grant is part of a £650m boost to encourage the take up of electric and ultra low emission vehicles and is worth £3,750 for band one qualifying vehicles and £1,500 for band two qualifying vehicles.

Not all electric cars will qualify for the Grant as it is limited to cars below £37,000. Car makers have to apply for the Grant, which is awarded on the sustainability of the car maker’s manufacturing processes. Those with the greenest manufacturing processes will qualify for the full band one Grant. As yet it is unclear which cars will qualify and at what level.

“The new Electric Car Grant is undoubtedly an important boost to the take up of electric cars. It will help drivers lease electric vehicles more easily at a more advantageous price. And it has already stimulated the market to introduce manufacturer-matching Grant price drops on EVs,” commented Rob Marshall, Operations Director of Gateway2Lease.

“While it may take a while to fully understand which cars can claim the Grant it certainly indicates the Government’s direction of travel. For drivers thinking of making the switch to electric, the Grant will certainly encourage them towards zero emission motoring,” he added.

Want to know more about the Electric Car Grant?

Our partner company which provides salary sacrifice to our customers, The Electric Car Scheme, has a detailed breakdown of how the Grant works. Click here to find out more.