Used Electric Vehicle Loan for Businesses

Support provided by Energy Savings Trust

What does this involve?

In September 2020, the Low Carbon Transport Loan was extended to cover used electric vehicles. This means that Scottish businesses of all sizes can now receive financial support towards the purchase of a used electric vehicle.

The interest-free Used Electric Vehicle Loan for businesses offers businesses in Scotland:

• up to £20,000 to cover the cost of purchasing a used electric car
• up to £20,000 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

The maximum vehicle cost and loan available is capped at the amounts indicated above. Only used electric cars and vans sold for £20,000 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 loan scheme is funded by Transport Scotland (an agency of the Scottish Government) and administered by Energy Saving Trust.

Am I eligible?

The Used Electric Vehicle Loan can be used for the purchase of a used electric car, van, motorcycle or moped by businesses that currently actively operate in Scotland. The business must have been trading or operational for at least 12 months. The purchased vehicle must be included on the Office for Zero Emissions Vehicles (OZEV) plug-in grant list

The vehicle should be purchased from a UK-based dealership that is accredited by the Motor Ombudsman or is part of a trade association signed up to the National Conciliation Service. This includes:

  • Scottish Motor Trade Association
  • National Franchised Dealers Association
  • Independent Garage Association/Trust My Garage
  • National Motorcycle Dealers Association
  • Motorcycle Industry Association
  • Retail Motor Industry Federation

Private sales, or vehicles bought from any other source, are not eligible.

View the full list of eligibility criteria on the UK Government website.

What does this cost?

There is no fee to apply.

Who is this for?

Businesses in Scotland looking for support to purchase a used electric vehicle.

How long does this take?

Energy Saving Trust will aim to process complete applications within 10 working days. A decision cannot be guaranteed before this, and if information is missing it will take longer to process.

The claim process then takes a further 10 working days, then another 3 to 5 working days for payment for successful applications.

Important information

To learn more about the purchasing process, view the guide to buying a second-hand electric vehicle on the Energy Saving Trust's website.

Next steps

Apply for a loan by completing Energy Saving Trust's online business transport form.

Support provided by Energy Savings Trust

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