Electric car loans and grants in Scotland: a comprehensive guide


The Scottish Government is pursuing a broad ‘Greener Scotland’ initiative and, as part of it, is offering interest-free loans to car buyers who want to go electric. Unlike many government grant and subsidy programs focused on electric cars, Scottish government loans were initially available for the purchase of new and used models – however, as of March 2021, only loans for cars used are always granted.

Funding for the program comes from Transport for Scotland. When buying a brand new electric car, you can borrow up to £ 28,000. In the event of a second-hand purchase, the maximum amount that can be borrowed is £ 20,000. Loans are also available for the purchase of electric motorcycles, the maximum amounts for new and used motorcycles in this case being £ 10,000 and £ 5,000.

This can be a great alternative to entering into a PCP finance deal with your local dealership, especially if you want to keep the car for the long term after you’ve finished paying for it. However, it’s worth paying attention to residuals – our guide to the slowest damping electric cars can help you do that. And if you’re buying used, check out our used buying guides and our pick of the best used electric cars to buy.

Electric vehicle loan

The Scottish Government’s electric vehicle loan was interest-free and repayable over up to six years. It provided up to £ 28,000 for the cost of a new electric car, but was closed to new applicants on March 30, 2021.

To be eligible, a vehicle must have already been eligible for the UK government’s Plug-in Car Grant (PiCG). So the same rules apply: no plug-in hybrids and only electric cars worth up to £ 50,000, including the recommended retail price. price, VAT and delivery costs. The loan was offered in addition to the PiCG rebate.

Used electric vehicle loan

Like the New Car Loan, the Scottish Government Used Electric Vehicle Loan is interest free and repayable over a maximum of five years. It is available to cover the purchase of a used electric car up to a value of £ 20,000. No end date for this plan has been set.

As with the New Car Loan, only cars eligible for the UK Government’s PiCG are eligible for the Scottish Loan. Other prerequisites also apply: the car must be purchased from a dealer recognized by the Motor Ombudsman, or part of the larger National Conciliation Service, which includes the Scottish Motor Trade Association and others. As with the new car loan, a Home Energy Scotland center will process the request and the terms and conditions will apply.

Granting of national charging points

Electric vehicle owners in Scotland are eligible for an OZEV grant of up to £ 350 to install a home wall charger, as well as £ 300 from the Energy Saving Trust. A supplement of £ 100 is also offered to people living in more remote parts of Scotland, as listed on the Energy Saving Trust website. This means that the total available for most Scottish residents is £ 650, or £ 750 for those in remote areas.

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