0345 643 5687
Open Mon-Fri 8.30am-6pm

Find The Best Car Leasing Deals...


Incentives to Drive an Eco-Friendly Vehicle

So it has come to that time where you have decided to purchase or lease a new car, what do you go for? The new eco-friendly models have been pictured everywhere from hybrid models to fully automatic vehicles, cars that cause minimal damage to the environment. The only issue is that these latest forms of technology tend to be rather pricey as it is still very new, so what incentives are there to encourage customers to take the plug-in plunge and purchase one of these green cars?

March of this year the Government plug-in car grant was updated to include a wider variety of models which fall into certain categories eligible to receive a significant contribution to the purchasing price of a new vehicle, car or van.

Now you can obtain a grant which helps towards the cost of a new electric car or van, as long as it meets certain requirements.

According to www.gov.uk the grant covers:

  • 35% of the cost of a car, up to a maximum of either £2,500 or £4,500 depending on the model
  • 20% of the cost of a van, up to a maximum of £8,000

The ‘cost’ is the full purchase price you pay for the basic vehicle - including number plates, vehicle excise duty and VAT. What it doesn’t include is the delivery charges, the first registration fee or any optional extras you choose to add on.



There are 4 categories of low emission vehicles. The grant you can get depends on the category.



CO2 emissions

Zero emission range


Maximum grant


Under 50g/km

At least 70 miles

35% of cost



Under 50g/km

10 to 69 miles

35% of cost



50 to 75g/km

At least 20 miles

35% of cost



Under 75g/km

At least 10 miles

20% of cost



‘Zero emission’ is the distance the car can travel before producing any CO2 emissions, so cars that have a zero emission range of 50 miles can travel that distance before the vehicle will begin releasing CO2 into the atmosphere.

Second-hand vehicles are not eligible for a grant however along with category 2 or 3 vehicles over the price of £60,000.

New vehicles which are eligible include the following:

Eligible category 1 vehicles

  • BMW i3
  • BYD e6
  • Citroen CZero
  • Ford Focus Electric
  • Hyundai IONIQ Electric
  • Kia Soul EV
  • Mahindra e20
  • Mercedes-Benz B-Class Electric Drive
  • Nissan e-NV200 (5-seater and 7-seater)
  • Nissan LEAF
  • Peugeot iON
  • Renault Fluence
  • Renault ZOE
  • Smart fortwo electric drive
  • Tesla Model S
  • Toyota Mirai
  • Volkswagen e-up!
  • Volkswagen e-Golf

Eligible category 2 vehicles

  • Audi A3 e-tron (MY16 only)
  • BMW 225xe
  • BMW 330e
  • Kia Optima Saloon PHEV
  • Mercedes-Benz C350 e (with 17 inch rear wheels)
  • Mitsubishi Outlander (except GX3h 4Work)
  • Toyota Prius Plug-in
  • Vauxhall Ampera
  • Volkswagen Golf GTE
  • Volkswagen Passat GTE
  • Volvo V60 D5 Twin Engine
  • Volvo V60 D6 Twin Engine
  • Volvo XC90 T8 Twin Engine Momentum

Eligible vans

  • BD Otomotiv eTraffic
  • BD Otomotiv eDucato
  • Citroen Berlingo
  • Daimler Mercedes-Benz Vito E-Cell
  • Mitsubishi Outlander GX3h 4Work
  • Nissan e-NV200 (cargo van)
  • Peugeot ePartner
  • Renault Kangoo ZE
  • Smith Electric Smith Edison


We currently have some great deals on leasing your own eco-friendly cars, for more information please contact our sales team on 0345 6435687 for your personalised quote.

posted by: Abigail Lavallin 27 October 2016