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 £30,000 to cover the cost of purchasing a used electric car or van, 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 or vans sold for £30,000 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, van, motorcycle or moped by individuals in Scotland. 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 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.
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 contact Home Energy Scotland advice centre.
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.
Support is also available to help businesses purchase used electric vehicles through our Used Electric Vehicle Business Loan.
Energy Saving Trust is authorised and regulated by the Financial Conduct Authority. This loan is subject to availability and terms and conditions apply.
