In September 2020, the Low Carbon Transport Loan was extended to cover used electric vehicles. This means that we can now provide Scottish businesses of all sizes with financial support towards the purchase of a used electric vehicle.
The interest-free Used Electric Vehicle Loan for businesses, funded by Transport Scotland (an agency of the Scottish Government) and administered by Energy Saving Trust, 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 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. The 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 brick and mortar dealership based in the UK where sales are conducted in-person, as well as through online platforms. This dealership must be accredited by the Motor Ombudsman or be part of a trade association signed up to the National Conciliation Service (National Franchised Dealers Association, Independent Garage Association/Trust My Garage, Scottish Motor Trade Association, National Motorcycle Dealers Association, Motorcycle Industry Association, Retail Motor Industry Federation).
- A dealership operating solely online. This dealership must have an up-to-date online presence, own the vehicles for sale and have reputable customer support services, as well as robust warranty procedures in place. Additionally, this dealership must transparently outline, at the very least, a vehicle’s age, battery capacity, mileage and the interior and exterior condition of the vehicle(s) on any sale document(s) provided.
Private sales, or vehicles bought from any other source, are not eligible.