Time running out for £5,000 grant as changes loom in March.
With a growing number of ultra low emission vehicles (ULEVs) on UK roads the Government grant scheme has been a success. The grant currently contributes £5,000 towards the cost of ULEVs that qualify.
From 1 March 2016, there will be some significant changes to how the scheme works, the amount available as a grant will be reduced. The grant will either be £4,500 or £2,500, dependent on the type of ULEV you are buying. If you’re considering buying a ULEV in the near future, you could save yourself thousands of pounds by placing an order before the changes come into force in March.
Three categories have been established to distinguish between the levels of efficiency amongst ULEVs. Category 1 cars will be eligible for the £4,500 grant, while cars in categories 2 and 3 will be eligible for the £2,500 grant. It must be noted that, category 2 and 3 cars that cost more than £60,000 will no longer be eligible for any grant at all.
With the full charge of an electric car costing a tiny fraction of what you’d pay to fill up a normal car with petrol or diesel, it’s easy to see why more electric vehicles are appearing on our roads, regardless of the reduction of the grant.
The grant, combined with environmental concerns and a rapidly expanding selection of ULEVs offering both private and fleet buyers more choice if they want to switch to greener cars, has led to an all-time high in sales of EV’s. In the first quarter of 2015, we saw a year on year increase of a whopping 386%.
The Government is unlikely to offer a grant on ULEVs forever, so it’ll still be worth taking advantage of the scheme in its revised form after 1 March.The scheme covers electric cars, plug-in hybrid models and hydrogen cars, of which most manufacturers have something to offer.
The grant is automatically deducted from the price of the car when you buy it. The dealership completes the paperwork, so there are no application forms to fill in.
Electric car grant eligibility
It’s up to manufacturers to submit a formal application for a model they believe is eligible for the subsidy. It’s in the interest of the manufacturers to do this, as the grant represents an attractive customer discount on one of their own models that they don’t have to pay for. For peace of mind, it’s worth knowing what the qualifying criteria are.
• Cars must be new
• Cars must produce less than 75g/km of CO2
• Electric vehicles must be capable of 70 miles or more on a single charge and plug-in hybrids must be capable of travelling 10 miles or more purely on electric power
• Cars must be capable of at least 60mph
• Cars must have a three-year/60,000-mile warranty, a three-year battery and electric drivetrain warranty with the option of extending the battery warranty by two years, and in some cases extra evidence that the battery will ‘perform reasonably’ after three years if a five-year warranty isn’t offered
The Categories Explained
The categories will be used from March 2016 to stagger the amount of money you can receive as a grant. This will be done with a view to encouraging buyers to choose not just a ULEV, but one of the most efficient on the market.
• Category 1: CO2 emissions of less than 50g/km and zero-emission range of at least 70 miles
• Category 2: CO2 emissions of less than 50g/km and zero-emission range of 10-69 miles
• Category 3: CO2 emissions of 50-75g/km and zero-emission range of at least 20 miles
The Government announced that the grant scheme will continue until at least 2018 but the three new categories above will be a considerable change.
If you are considering a ULEV as your next vehicle or would like some advice please contact the GWA team on 01243 510 650 or email us: Sales@gwacars.com.
Remember if you want to make use of the full £5,000 grant, place your order before the end of February.