You probably know that the Government this week introduced a new electric car grant in a move to make new EVs more affordable. This grant commits £650 million to the marketplace, offering discounts of up to £3,750 off the cost of new battery electric vehicles ordered from 16th July, with list prices up to £37,000.
At Marshall Leasing we are closely following the guidance from the BVRLA and AFP. Crucially, it’s important to know that both private consumers and businesses can benefit from the grant when purchasing a qualifying new zero emission vehicle and registering it to a UK address. Interestingly, there is no fleet order cap.
Applications for OEMs have just opened and close in 2028. This remains under review and the grant will be subject to amendment or closure when funds are exhausted.
In terms of the precise vehicles on offer, this information is due to be released in a few weeks’ time when OEMs have had the opportunity for their applications to be processed for eligibility.
We are told that eligible vehicles must:
- Be an M1 passenger vehicle (used for the carriage of passengers).
- Produce 0gCO2/km at the tailpipe.
- Have a minimum range of 100 miles WLTP.
- Have a warranty that guarantees the following:
- Vehicle warranty (excluding the battery or fuel cell and electric drive train) for a minimum period of three years or 60,000 miles (96,000 km), whichever comes sooner.
- Battery or fuel cell and electric drive train must be covered by a warranty for a minimum period of eight years or 100,000 miles (160,000 km), whichever comes sooner. In respect of any traction battery, a replacement must be provided if it falls below 70% capacity during the first eight years.
- For battery electric vehicles, the battery must maintain at least 80% of its initial or rated charge capacity for the initial 3 years, and at least 70% of initial rated charge capacity for the initial 8 years or 100,000 miles, whichever comes first.
- For fuel cell vehicles, the fuel stack must maintain at least 90% of its rated voltage output for the initial 5 years.
Of course, time is of the essence. All those responsible for fleets are recommended to review the new grant and consider it’s potential impact on fleet composition.
We can assist you in achieving the best possible outcomes around this interesting industry development. Please get in touch with us to discuss this by emailing info@marshall-leasing.co.uk.