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Grants and loans

Used Electric Vehicle Loan

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Please note that this page contains information and links most relevant for people living in Scotland.

The Used Electric Vehicle Loan is very popular and we are receiving a high number of telephone enquiries at the moment. Please note that you can also use the Home Energy Scotland contact form to get in touch.

In September 2020, the Low Carbon Transport Loan was extended to cover used electric vehicles (EVs). This means that we can now provide eligible drivers in Scotland with financial support towards the purchase of a used electric vehicle.

The interest-free Used Electric Vehicle Loan, funded by Transport Scotland (an agency of the Scottish Government) and administered by Energy Saving Trust, offers eligible drivers in Scotland an interest-free loan of up to £20,000 to cover the cost of purchasing a used electric car, or up to £5,000 for the purchase of a used electric motorcycle or moped. The loan has a repayment term of up to five years.

The maximum vehicle cost and loan available is capped at the amounts indicated above. Only used electric cars sold for £20,000 or under or used electric motorbikes and mopeds sold for £5,000 or under are eligible for the loan. Vehicles with a list price over the relevant cap are not eligible.

The Used Electric Vehicle Loan can be used for the purchase of a used electric car, motorcycle or moped by individuals in Scotland. The purchased vehicle, motorcycle or moped must be included on the Office for Zero Emission Vehicles (OZEV) plug-in grant list. Plug-in hybrid models are not eligible for funding. Current owners of pure (fully) electric vehicles are not eligible for this loan.

The vehicle should be purchased from a UK based dealership that is accredited by the Motor Ombudsman or is part of a trade association signed up to the National Conciliation Service. This includes:

Private person to person sales, or vehicles bought from any other source, are not eligible.

View the full list of eligibility criteria.

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.

For more information about electric cars, to request an application form, or to learn more about the full terms and conditions, please call your local Home Energy Scotland advice centre free on 0808 808 2282.

Terms and conditions apply and 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.

For more information, please view our FAQ document.

View information and eligibility on the Used Electric Vehicle Loan for businesses. 

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

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Last updated: 11 January 2022