Electric Vehicle Loans for Scottish Business
Scottish businesses of all sizes can receive financial support towards the purchase of a new or used electric vehicle. You can use this loan for the purchase of a electric car, van, or HGV, motorcycle or moped by businesses that currently actively operate in Scotland.
New Electric Vehicles
The Low Carbon Transport Business Loan provides up to £150,000 to help businesses reduce their carbon impact and fuel costs. Limited companies are eligible for up to £150,000 of loan support; sole traders or partnerships are eligible for up to £75,000 of loan support. The loan is interest-free, with a repayment term of up to six years.
The loan can support the purchase of new:
- electric motorcycles and mopeds – maximum loan amount of £10,000
- electric car(s) – maximum loan amount of £30,000
- hydrogen car(s) – maximum loan amount of £50,000
- electric van(s) – maximum loan amount of £35,000
- electric HGV(s) – maximum loan amount of £75,000
- hydrogen vehicles – maximum loan amount of £75,000.
The vehicle you are purchasing must be dedicated to high mileage operations and any vehicle you are looking to replace must have an average annual mileage of at least 15,000 miles. In addition if you are looking for funding for an electric car, the maximum list price of the vehicle is capped at £50,000.
Finally, if you are looking for funding for a large electric or large hydrogen vehicle, such as an electric bus, electric coach or electric HGV, the loan will cover the cost difference, up to £75,000, between the electric or hydrogen vehicle and its petrol or diesel equivalent.
Please note that in order to be eligible for this loan, your business must have been operational for a minimum of 12 months.
Used Electric Vehicles
The interest-free Used Electric Vehicle Loan for businesses in Scotland offers:
- 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
Limited companies are eligible for up to £90,000 of loan support; sole traders or partnerships are eligible for up to £75,000 of loan support.
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.
Again, in order to be eligible for this loan, your business must have been operational for a minimum of 12 months and the vehicle must be purchased from a dealership. Private sales, or vehicles bought from any other source, are not eligible
The loan schemes are funded by Transport Scotland (an agency of the Scottish Government) and administered by Energy Saving Trust. You can find more information on the New Electric Vehicle Loan scheme here and the Used Electric Vehicle Loan scheme here.
If you want to know more about the VAT liabilities if you buy or use an electric vehicle for your business or work you can read our earlier blog article VAT Rules for Charging Electric Vehicles.