Plug-In Car Grant

How much does the grant provide?

The government recently revised its Plug-In Car Grant (PICG), which provides money towards the cost of a new fully electric or plug-in hybrid car or van. Providing the vehicle meets the grant’s criteria, 35% of the cost of a car and 20% of the cost of a van will be offered, up to £4,500 and £8,000 respectively. By ‘cost’, they mean the vehicle’s basic retail price along with VAT, road tax (VED) and number plates. Delivery charges aren’t included, that’s all.

How does a vehicle qualify?

The updated version of the Plug-In Car Grant sees low-emissions vehicles split into four categories:

  • Category 1: vehicles that emit less than 50g/km of CO2 and have a zero-emissions (pure electric) range of 70 miles or more
  • Category 2: vehicles whose CO2 output is again below 50g/km but this time have a zero-emissions range of between 10 and 69 miles
  • Category 3: Qualifying CO2 emissions now embrace cars and vans emitting between 50 and 75g/km, as long as they can drive a minimum of 20 miles on just electricity
  • Vans emitting less than 75g/km and which can be driven 10 miles or more in electric mode

How much are the grants for?

Cars that qualify for PICG category 1 will receive a 35% grant of up to £4,500, cars falling into categories 1 and 2 also attract a 35% grant but the maximum amount reduces to £2,500, and eligible vans get a grant of 20% of the vehicle’s cost, up to a maximum of £8,000.

Go on, give me some examples…

If you’re interested in leasing a particular ultra-low-emissions car or van on personal contract hire (PCH) or via business leasing, you’re advised to contact our friendly team for advice, but here are some examples.

Category 1 includes the Ford Focus Electric, Kia Soul EV, Mercedes B-Class Electric Drive, Nissan e-NV200 minibus, Nissan LEAF, Renault ZOE, Tesla Model S, Toyota Mirai hydrogen fuel cell vehicle (FCV), and Volkswagen’s e-up! and e-Golf.

Vehicles grouped in category 2 include the Audi A3 e-tron, BMW’s 225xe and 330e, Mercedes’ C350e (with 17″ rear wheels), the popular Mitsubishi Outlander PHEV (but not GX3h and 4Work versions), the Toyota Prius Plug-in, VW Golf GTE and Volvo’s V60 in D5 and D6 Twin Engine guise, along with the Swedish firm’s XC90 T8.

What about vans?

Commercial vehicles eligible for the Plug-In Car Grant include the Citroen Berlingo, Mercedes Vito E-Cell, Nissan e-NV200 cargo van, Peugeot ePartner and Renault Kangoo ZE.

Any caveats?

Good question – and there is one. Vehicles that would normally qualify for category 2 or 3 but which have a retail price of more than £60,000 aren’t covered by the PICG, which means it excludes the BMW i8 hybrid and Porsche Panamera S E-Hybrid. The amazing Tesla Model S does qualify for the PICG, though, as it’s fully electric and has an electric range of over 250 miles, despite its price tag, placing it in category 1.

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