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Government Electric Car Grant Explained

The government electric car grant is £1,500. When you lease an eligible vehicle, the grant is applied automatically. Our handy guide tells you everything you need to know.

Why Does The Government Electric Car Grant Exist?

As part of their Road to Zero policy – when the sale of new petrol and diesel cars will be banned from 2030 – the government wants to promote eco-friendly vehicles that have low or zero CO2 emissions and don’t pollute the environment. 

That’s why there is a grant which reduces the recommended retail price (RRP) when you lease certain fully electric cars.

The grant scheme – sometimes referred to as the Plug-in Car Grant or PiCG – is administered by the Office for Zero Emission Vehicles (OZEV).

Which Cars Can Get The Grant?

Only 100% electric vehicles are eligible for the grant. These vehicles are powered by batteries alone – no internal combustion engine in sight. They are often referred to as Battery Electric Vehicles or BEVs.

The grant applies to all-electric cars under £32,000, as long as they have a battery range of at least 70 miles. Fortunately, all BEVs you can lease today have a range greater than 70 miles.

Plug-in hybrids and conventional (non plug-in) hybrid cars – which have both a battery and a petrol or diesel engine – do not attract the electric car grant.

Full details of the grant scheme and eligible cars are available on the government website.

How Much Is The Government Electric Car Grant?

As long as the vehicle’s purchase price (RRP), including VAT and delivery fees, is less than £32,000, then the grant is £1,500.

For example, an all-electric car costing £31,000 would be priced at £29,500 once the grant of £1,500 has been taken off.

On the other hand, an electric vehicle with a cost of £38,000 (RRP) would not be eligible for the grant and would remain at £38,000.

Do I Need To Apply For The Grant?

If you lease an eligible fully electric car with Select Car Leasing, you don't need to do any paperwork to get the grant.

The £1,500 reduction in price will be applied automatically before your monthly payments are calculated.

We have a wide range of excellent lease deals for both all-electric and hybrid cars. Why not get in touch now for a quick chat or browse our special offers below.

Plug-in Car Grant Summary

  • Applies to fully electric cars only
  • £1,500 off the RRP
  • Cars priced at below £32,000 are eligible
  • The discount is applied automatically when you lease

Want to know more or enquire about a new electric car?

Why not phone one of our friendly electric vehicle consultants on 0118 3048 688

or email us at enquiries@selectcarleasing.co.uk

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