Used Electric Vehicle Loan for Businesses
Last Updated: 29 Jul 2022
Support provided by Energy Savings Trust
In September 2020, the Low Carbon Transport Loan was extended to cover used electric vehicles. This means that Scottish businesses of all sizes can now receive financial support towards the purchase of a used electric vehicle.
The interest-free Used Electric Vehicle Loan for businesses offers businesses in Scotland:
• up to £30,000 to cover the cost of purchasing a used electric car
• up to £30,000 to cover the cost of purchasing a used electric van
• up to £5,000 to cover the cost of purchasing a used electric motorcycle or moped
If you operate as a limited company, the total funding available to your organisation is £90,000. If you operate as a sole trader or partnership, the total funding available is £75,000. Only used electric cars or vans sold for £30,000 or less, or used electric motorcycles or mopeds sold for £5,000 or less, are eligible for the loan.
The loan scheme is funded by Transport Scotland (an agency of the Scottish Government) and administered by Energy Saving Trust.
The Used Electric Vehicle Loan can be used for the purchase of a used electric car, van, motorcycle or moped by businesses that currently actively operate in Scotland. Your business must have been trading or operational for at least 12 months.
The vehicle should be purchased from a dealership. Acceptable dealerships include:
a traditional dealership based in the UK where their sales are conducted in-person, as well as through their online platforms, which is either:
accredited by the Motor Ombudsman
part of a trade association signed up to the National Conciliation Service
a dealership operating solely online, which owns the vehicles for sale and has:
an up-to-date online presence
reputable customer support services
robust warranty procedures in place
transparently outlined the vehicle's age, battery capacity, mileage and the interior and exterior condition of the vehicle on any sale document provided
There is no fee to apply. This loan is interest-free.
Businesses in Scotland looking for support to purchase a used electric vehicle.
Energy Saving Trust will aim to process complete applications within 10 working days. A decision cannot be guaranteed before this, and if information is missing it will take longer to process.
The claim process then takes a further 10 working days, then another 3 to 5 working days for payment for successful applications.
To learn more about the purchasing process, view the guide to buying a second-hand electric vehicle, external link which will open in a new window on the Energy Saving Trust's website.
Visit the Energy Saving Trust's website for more information and to apply for a loan using the online business transport form. A sustainable transport coordinator will then be in touch.
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