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Electric Car Grants are changing at the end of February 2016

Over the past couple of years, Cameron Clarke Leasing has seen a dramatic increase in the number of people ordering electric vehicles, whether these be pure electric or a hybrid. Of course, the reasons for going electric vary from person to person but a big factor has been the generous government grant that has been available, cutting as much as £5000 off the cost of a new car and an incredible £8000 off the cost of a new van.

However, these grants are changing for cars from the end of this month, becoming less generous in the process so if you want to take advantage of the highest grant, speed really is of the essence.

What is changing exactly?

Currently, the grant is based solely on vehicle cost (including number plates, vehicle excise duty and VAT) and covers: 35% off the cost of a new car, up to a maximum of £5,000 20% off the cost of a van, up to a maximum of £8,000 But, from 1 March 2016, the grant for cars will be a category system based on environmental performance and, no matter what car you buy, the grant will not be as high as £5,000.

First, let’s look at the categories:
Category 1 - CO2 emissions of less than 50g/km and a zero emission range of at least 70 miles
Category 2 - CO2 emissions of less than 50g/km and a zero emission range between 10 and 69 miles
Category 3 - CO2 emissions of 50g/km to 75g/km and a zero emission range of at least 20 miles

And then, what will the grant be for eligible vehicles:
Category 1 - up to £4,500
Category 2 - up to £2,500
Category 3 - up to £2,500

Finally, and probably most importantly, into which category does your favourite electric car fall?

How do these grants affect the cost of my lease contract?

The grant is taken off the top line price of your chosen vehicle and then passed along in terms of a reduction in your monthly payments. Whilst it would be unwise to give a typical example, mainly because we deal with every customer on an individual basis and the length of each lease varies, it is possible to make monthly savings of up to £200 by taking advantage of this grant.

To conclude…

The good news is that you can still save money by choosing an electric car and the grant for cars will remain in place until March 2017 however grant levels will be reviewed when sales of Category 1 cars reach 40,000 and Categories 2 and 3 reach combined sales of 45,000. The bad news is that over 23,000 Category 1 cars have already been sold in the UK and sales are expected to continue to rise.

So, if you want to take advantage of the highest available grant for an electric / hybrid car, you will need to get in touch and act fast. As ever, at Cameron Clarke Leasing, we are always happy to answer questions and help you to obtain the best lease deal possible. Please feel free to call us on 01772 728000 or email

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Posted on 2nd February 2016 at 11:58 AM

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