Scotland’s government will extend the Low Carbon Transport Loan to cover used EVs for the first time, starting on September 28. The extension will now enable an individual or business to obtain a loan of up to £20,000, interest free, over five years.
The loan is being expanded to help people who may otherwise be put off by the purchase price of electric vehicles.
Delivered through the Energy Saving Trust, the loan will enable people and businesses to benefit from cheaper running costs compared with petrol and diesel vehicles while supporting Scotland’s net zero target.
To date, more than £85 million has been provided to help people make the switch to electric vehicles.
Cabinet Secretary for Transport, Infrastructure and Connectivity Michael Matheson said:
The global shift toward electric vehicles means that prices are coming down year on year, but the price point for new vehicles remains high for many. We want to make it easier for people to switch by providing interest-free finance options for used vehicles.
No one who requires a vehicle should be left behind from the benefits these modern vehicles can bring, both in terms of running costs and the environmental benefits.
Support is also available through Energy Saving Trust for e-bikes including e-cargo bikes.
The British government’s Department for Transport said in November 2019 that Scotland then had more than 1,500 charging devices. Further, the number of new EV and hybrid cars registered in the UK was up nearly 40% on the same period last year in late 2019.
ChargePlace Scotland, the country’s government-owned national EV charging network, says there are more than 1,000 public charge points as of 2020.
For domestic charge points, the Office for Low Emission Vehicles (OLEV) is offering £500 toward the cost of installation. The typical cost for a home charge point and installation is approximately £1000. The supplier receives this money from OLEV directly.
In 2017, the Scottish government announced plans to “phase out the need” for new petrol and diesel cars by 2032.
The Scottish government uses that wording because ultimately it does not have the power to ban ICE cars. That power lies with the UK’s Parliament. But the Scottish government has taken the lead in promoting EVs.
Scotland is doing this by expanding the EV charging network and offering incentives to encourage people to buy EVs. With this latest move to offer loans for used EVs, it’s delivering on its incentives promise.
Scotland has set a net zero target of 2045 — five years before the Paris Agreement target.
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