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 Used Electric Vehicle Loan offers businesses in Scotland interest-free loans to purchase:

  • electric mopeds  - maximum loan amount £5,000 (must cost less than £5,000)
  • electric motorcycles  - maximum loan amount £5,000 (must cost less than £5,000)
  • electric utility vehicles – maximum loan amount £10,000 (must cost less than £10,000)
  • electric cars – maximum loan amount £30,000 (must cost less than £30,000)
  • electric vans – maximum loan amount £30,000 (must cost less than £30,000)
  • hydrogen vehicles – maximum loan amount £30,000

If you operate as a limited company, the maximum funding you can receive is £90,000. If you operate as a sole trader or partnership, the maximum funding you can receive is £75,000.

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, utility vehicle, motorcycle or moped by businesses that currently actively operate in Scotland. Your business must have been trading or operational for at least 12 months. 

The vehicle should be purchased from a dealership. Acceptable dealerships include:

  • a traditional dealership based in the UK where their sales are conducted in-person, as well as through their online platforms, which is either:
    • accredited by the Motor Ombudsman
    • part of a trade association signed up to the National Conciliation Service
  • a dealership operating solely online, which owns the vehicles for sale and has:
    • an up-to-date online presence
    • reputable customer support services
    • robust warranty procedures in place
    • transparently outlined the vehicle’s age, battery capacity, mileage and the interior and exterior condition of the vehicle on any sale document provided

What does this cost?

There is no fee to apply and the loans offered are interest-free. 

Who is this for?

Businesses in Scotland that have been operating for at least a year and are looking to reduce the carbon impact and costs of their transportation.

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, external link which will open in a new window on the Energy Saving Trust's website.

To apply, you will need to fill out the online business transport form available on the Energy Saving Trust's website. A sustainable transport coordinator will then be in touch. 

Next steps

Visit the Energy Saving Trust's website for more information and to apply for a loan using the online business transport form. 

Support provided by Energy Savings Trust

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