Used Electric Vehicle Loan for Business

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.

The following basic eligibility criteria apply to the Used Electric Vehicle Business Loan:

• You are based in Scotland and/or currently and actively operating in Scotland. If your business is registered in England or Wales, but operates in Scotland, you can provide us with a utility bill or similar document showing us the address in Scotland.
• You have been trading or operational for at least 12 months.
• You have regular day-to-day access to a charge point located in Scotland; if you do not, you are arranging to have one installed or you are joining ChargePlace Scotland.

When you apply, be sure to have ready:

• Your financial accounts (assets, liabilities, total income etc.).
• Quote(s) for the vehicle(s).
• Dealership contact details.
• Vehicle Comparison Report or Fleet Review.

In addition to the above you may also need:

• A letter from your dealership detailing the vehicle’s registration number and odometer reading – if you are seeking support to purchase an ex-demonstration vehicle.

View the full list of eligibility criteria.

Please note that to be eligible for this loan, your business must be operational for a minimum of 12 months.

With the exception of an initial deposit, applicants must not have made any other payment towards or taken ownership of the vehicle before receiving a loan offer.

To learn more about the purchasing process, view our guide to buying a second-hand electric vehicle.

To apply for a loan, please complete our online business transport form.

If you are interested in a new electric vehicle, explore the funding available through our Low Carbon Transport Business Loan.

Please note that taxi operators are not eligible for the Used Electric Vehicle Loan. For more information, view our infographic on funding available for taxis and private hire vehicles in Scotland.

Terms and conditions apply. If you are successful with your application you must keep up with loan repayments. Failure to do so will result in additional steps being taken to recover funds. Full details will be supplied in your loan agreement.

Support is also available to help individuals purchase a used electric vehicle through our Used Electric Vehicle Loan.

Energy Saving Trust is authorised and regulated by the Financial Conduct Authority. This loan is subject to availability and terms and conditions apply.