UK'S MOST COMPREHENSIVE CAR HISTORY CHECK ONLY £9.99
You could save a significant sum of money on your purchase of a new EV. Indeed, there is currently an electric car grant available that can quite literally save thousands on the purchase price of your new vehicle. But how much is this grant worth, and how can you claim it? Well, we’ve outlined everything you need to know about saving money with an EV in today’s handy guide to help!
Before we go any further, we should first consider whether there are even any grants available on new EVs for 2025. Well, the good news is: yes, absolutely! Indeed, there is currently a new grant available for electric cars that can potentially save a significant sum of money, making it highly worth considering.
The new EV grant is available on brand new electric car purchases. The grant is split into two bands: Band 1 and Band 2, depending on the car in question’s sustainability. Critically, the grant is available specifically for sustainable cars, so luxury and high-end electrics aren’t included in these groups; in other words, the grant is only available for cars up to £37,000 in value. Any cars above this value unfortunately won’t be eligible for the grant, so keep that in mind.
The value of the 2025 EV grant depends on which band your chosen car falls into. This is based on the sustainability of your chosen vehicle. Indeed, Band 1 EVs receive a £3750 discount, while Band 2 EVs can only claim a £1500 discount. Cars that don’t fall into these categories are not eligible for a grant discount.
The government categorises cars based on their lifetime emission standards. Keep in mind that the grant can only be claimed if buying from a participating dealership, too.
Thus far, we’ve looked at the different grant values you can claim. But is it actually worth buying a new electric car with the grant, or would second-hand be better? Well, this depends really on what you’re looking for.
If you are already looking to buy a brand new car, making the most of the grant could be excellent. However, keep in mind here that new vehicles depreciate incredibly quickly. In fact, in the first year alone, it’s not uncommon for a vehicle to depreciate by 15% or more. Given this, you could easily purchase a year-old model for a larger saving than the grant offers.
If you’re looking to save money, choosing second-hand will likely be more cost-effective. However, not all used cars are genuine, so always run a car history check to ensure your chosen vehicle is safe, genuine, and as described by the seller.
If you’ve been thinking of buying an electric car, there’s a lot to keep in mind. Fortunately, the 2025 EV grant could help with the cost significantly. With that being said, if your primary motivation is to save money, choosing second-hand might work better for you.