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Plug-in Car Grant extended and now includes vans

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The Plug-in Car Grant , offering up to £5000 off an electric car , has been extended, and it now includes up to £8000 off electric vans .

The government has also said that funding is secured until 2015.

The Plug-in Car Grant offers 25% – up to £5000 – to motorists buying a new plug-in or electric car. The grant now applies to vans, giving buyers 20% – up to £8000 – off the price of an electric van.

Find out which cars are eligible for the grant – read our Electric Car Guide

The purpose of the consumer grant is to enable the purchase of ultra-low carbon vehicles which could otherwise have been unaffordable. The consumer will also benefit from lower running costs over the lifetime of the vehicle.

Transport Minister Norman Baker said “Electric vehicles are the arrowhead for a low carbon revolution in motoring and as more models come to market we’ll begin to see sales gather pace. Car buyers have had a year to take advantage of our grant and now it’s time for van buyers to get their chance to go electric. This is great news for businesses given the lower running costs of these vehicles – fleet buyers tell us that this is one of the most important factor influencing their decision on what to buy.

“It is radical initiatives like these which will allow us to create a transport system that both cuts carbon and is an engine for economic growth.”

Business Minister Mark Prisk said “Supporting ultra low carbon technology in vans makes sense. An upfront purchase grant, when combined with lower running costs and tax benefits, can make switching to an ultra low carbon van an attractive choice for businesses. The technology also fits well with a large portion of the van market that rely on short urban trips to and from base.”

From today ultra-low carbon van manufacturers will be able to apply to be part of the Plug-In Van Grant – which will help to improve local air quality in cities, reduce carbon emissions and meet Government carbon reduction targets.

To be eligible for the scheme, vans will have to meet performance criteria to ensure safety, range, and ultra-low tailpipe emissions. Consumers, both business and private will receive the discount at the point of purchase.

There are currently 10 cars eligible for the Plug-In Car Grant – 5 of which came onto the market in 2011, with the other half expected to be available to purchase this year. During the first year of the scheme, over 1000 eligible vehicles were registered and, up to 31 December 2011, 892 applications were made for the Plug-In Car Grant.

The Renault Kangoo Van Z.E. from £16,990 excluding VAT and monthly battery hire will now cost from just £13,592, putting it within only £1,000 of its diesel counterpart.

For businesses in London this makes complete sense; read our Renault Kangoo Van Z.E. review
.

Free trials of electric vehicles
are available for businesses located in the London Borough of Camden

Find out which cars are eligible for the grant – read our Electric Car Guide