There’s a lot of talk about how much you can save by making the switch to an electric car. But the first hurdle for many is weighing up whether to fork out for a new EV over a conventional petrol or diesel.
There’s no denying electric vehicles are expensive. There’s more tech, advanced systems and complex components on board, so it’s understandable. However, with the rising cost of living and price of energy creeping up – is taking the leap worth it and what are the options when buying an EV?
Let’s take a look…
Electric car grants
Unfortunately, if you’re considering buying an electric car, the government no longer provide plug-in grants for cars. This scheme previously offered assistance towards purchasing a new EV. It was implemented to help boost the number of electric cars on the road, and it did just that. In 2011, there were less than 1,000 EVs, but at the end of July 2022, this stands at more than 930,000 including hybrids.
There is an exception to the rule for some wheelchair-accessible vehicles. However, the grant is only available towards the cost of converting a passenger car or van into an accessible vehicle. Numerous conditions apply, and only specific models fall into this category. So, check the government website for more details.
The grant scheme has only just finished. However, the Transport Minister says there’ll be a shift in focus on funding for more infrastructure and help for other vehicle sectors, such as taxis, to move to electrification.
Plug-in van grants
Although the plug-in car grant is no longer available. Anyone looking to buy a commercial electric vehicle can still take advantage of the Plug-In Van Grant (PIVG). This offers a discount on the price of a van with varying amounts depending on the type of vehicle. Current grants include:
- Small van (up to 2.5 tonnes) – £2,500
- Large van (2.5-4.25 tonnes) – £5,000
- Small trucks (4.25-12 tonnes) – 20% of the purchase price up to £16,000
- Large trucks (over 12 tonnes) – 20% of the purchase price up to £25,000
- Taxis - £7,500
- Motorbikes - £500
There is a catch. Only certain models approved by the government are in the PIVG scheme. Plus, there are limited numbers of grants available per year. So, check first if you’re thinking about this option.
Electric charge point grants
In March 2022, the EV Chargepoint Grant replaced the Electric Vehicle Homecharge Scheme (EVHS). In many respects, it follows the same format as the previous grant, but the eligibility criteria have changed.
Installing a chargepoint at home is one of the most cost-effective ways to recharge your EV. However, this installation costs upwards of £600 and around £1000 for more advanced wallboxes.
The grant provides up to £350 off the cost of buying and installing a home chargepoint. But, it is only available to people living in rented properties, landlords or flat owners with off-street parking. In addition, you can only claim one chargepoint per vehicle or household.
Affordable electric vehicles
According to recent data, there are 24 EV models under the £32,000 price tag. This is a larger number compared to several years ago. Still, most electric cars are over this price and may be inaccessible due to affordability.
In comparison, if buying outright isn’t an option, there are numerous affordable leasing deals for the latest EVs. The choice of finance packages gives you options such as low monthly payments with a balloon instalment at the end. Or straightforward lease agreements where you hand the car back. These options make owning an electric vehicle more affordable and accessible, especially with the 2030 deadline looming.
Electric car scrappage schemes
Scrappage schemes have been around for a while. In their heyday, we saw thousands knocked off the price of a new car for swapping in an old clunker. So, it’s no surprise that these schemes are back to convince you to trade in your car for an EV.
In an aim to get more electric vehicles on the road, some manufacturers are offering money off low-emission cars when you trade in your old ones. Examples include:
Renault
Renault is currently running a New For Old scheme. This gives you the opportunity to swap in your old car (well, anything you’ve owned for over 90 days) for one of their new models. The level of savings varies between £500 and £2,000, but you’ll have to make a cash purchase to be eligible for the money off.
Kia
If you’ve owned your vehicle for at least three months, you can use Kia’s scrappage scheme against some of its models. Choose either £1,500 off a Rio or Picanto. Or £2,000 off a Stonic. But you’ll have to hurry, as this scheme is only available until 30 September 2022.
And cities…
It’s not just manufacturers that have scrappage schemes to encourage EV purchases. City councils do too!
London previously offered a ULEZ car and motorcycle scrappage scheme. But its popularity has seen funding dry up for the moment.
Birmingham is another city promoting green travel, and eligible individuals can get up to £2,000 worth of travel credit or money off a compliant vehicle.
Each scheme has specific criteria. However, they provide a way to make an electric car more affordable.
Taking the next step in eco-motoring with Leasing Options
Buying an electric car outright might not be on the cards. However, leasing an EV is an affordable alternative. There’s a wide choice of vehicles available, including compact city run-arounds to family SUVs. Choosing your next car with Leasing Options opens up deals to suit your budget. Plus, our partnership with Motorway means you can sell your current model with ease and put the money towards a new electric vehicle.
