Cost savings

The government’s 2018 Road to Zero Strategy set a target of at least 50% of new car sales to be ultra-low emission by 2030.

A number of financial incentives are now available when purchasing ultra-low emission vehicles:

Plug-in car grant

Cars

The government’s scheme will pay for 35% of the purchase price of vehicles with CO2 emissions of less than 50g/km and can travel at least 112km (70 miles) without any CO2 emissions at all, up to a maximum of £3,500.

Motorcycles

The grant will pay for 20% of the purchase price for motorcycles, which have no CO2 emissions and can travel at least 50km (31 miles) between charges, up to a maximum of £1,500.

Mopeds

The grant will pay for 20% of the purchase price for mopeds, which have no CO2 emissions and can travel at least 30km (19 miles) between charges, up to a maximum of £1,500.

Vans

The grant will pay for 20% of the purchase price for vans, which have CO2 emissions of less than 75g/km and can travel at least 16km (10 miles) without any CO2 emissions at all, up to a maximum of £8,000.

Taxis

The grant will pay for 20% of the purchase price for purpose-built taxis which have CO2 emissions of less than 50g/km and can travel at least 112km (70 miles) without any CO2 emissions at all, up to a maximum of £7,500.

Full details of eligible vehicles are available on the Government website.

The Workplace Charging Scheme

Businesses can apply for grants of up to 75% of purchase and installation costs, up to a maximum of £500 for each socket, up to a maximum of 20 across all sites for each applicant.

All private and public sector organisations with dedicated off-street parking for staff or fleet use are eligible to claim the grant.

Vehicle Excise Duty (road tax)

The DVLA now calculates vehicle tax in the first year of registration based on CO2 emissions and, after that, dependent upon the fuel type of the vehicle.

By switching to a low emission vehicle, you’ll receive a discount on your road tax.

  • All pure electric cars (costing less than £40,000) attract a rate of £0 per year
  • Alternative fuel vehicles (which includes plug-in hybrids) receive a £10 discount each year.

Cut down ‘Grey Fleet’ expenses

How much does your organisation spend on grey fleet expenses?

There are around four million grey fleet cars in the UK – that is, employees using their own vehicles for business purposes. That’s more than three times the number of company cars.

You can make major savings by managing your grey fleet more effectively, as well as reducing their environmental and health and safety impacts.

The Energy Saving Trust offers a free Grey Fleet review to advise your organisation on the right measures and tools to improve your grey fleet and save money.

Value

While the up-front cost of buying an electric vehicle is often more than for petrol or diesel vehicles, they are getting cheaper and cheaper.

And much lower running costs – typically around one-fifth of the running costs of petrol vehicles – mean the whole-life running costs are typically cheaper.

It’s expected that electric vehicles will cost the same to buy as petrol vehicles in the near future.

Between that and their increasing popularity and enhanced technologies, electric vehicles are increasingly holding their value in the second-hand market.

Find out more