Scotland Offers Interest Free Loans On Electric Cars


First Tesla Supercharger In Scotland

First Tesla Supercharger In Scotland

Scotland, on top of the UK’s Plug-in Vehicle Grant (up to £5,000 for cars and £8,000 for vans), and ChargePlace Scotland’s program to finance home EVSEs, now has a new incentive to buy an electric car.

Transport Scotland introduced a new £2.5 million (over $3.8 million) fund through Energy Saving Trust to offer interest free loans to buyers of plug-in cars.

 Up to £50,000 for individuals and £100,000 for businesses in interest free loans

£50,000 is around $77,000, so one could finance nearly all models on the market. Loans must be repaid over a period of up to six years.

Transport minister Derek Mackay said:

“Encouraging mass changeover to electric vehicles, from more polluting ones running on petrol or diesel, is a key to cleaner road transport in Scotland and a fundamental factor in achieving our ambitious climate change targets while also improving local air quality.”

“Electric vehicles already offer large savings to drivers through reduced fuel and taxation costs and this fund will further encourage new buyers by addressing the current cost premium often cited as a barrier to making the switch.  I am pleased we are adding this incentive to the growing package of support measures for EVs outlined in the ‘Switched on Scotland’ policy roadmap.”

Harry Mayers, head of new services at the Energy Saving Trust, commented:

“We’re seeing an increasing amount of interest in electric cars as the technology develops and the charging infrastructure continues to grow across Scotland.  This loan fund from Transport Scotland will help people to turn that interest into action and benefit from the long-term cost savings that electric cars offer.”

“Electric cars cost around 3p per mile to run, compared with around 15p per mile for the average petrol car, and incur no road tax. They also help to reduce local air and noise pollution, contributing towards a greener, healthier Scotland.”

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7 Comments on "Scotland Offers Interest Free Loans On Electric Cars"

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Doesn’t Scotland now have a lot of wind power? It would make perfect sense to switch to electric powered EV’s and make Scotland Richer with MORE JOBS.

Sheesh. They must have an Economist in the Administration.

Aye, we’re seeing a lot of tidal power proposals too. This stuff came up a lot in the recent independence debate; right now oil provides a big chunk of Scotland’s revenue, but we have a load of renewables potential too (even if solar’d be a bust!). After a switch to renewable energy, there’s no reason Scotland can’t continue to be an energy exporter.

I think this loan deal’s a good idea, but maybe a couple of years early, since it’s still mostly a better idea to lease electric than buy.

Indeed. And wind power often generates a massive amount of electricity at night when it isn’t needed. So getting more EVs is a great way to take advantage of that night-time power.

Scotland wisely seems to be on the path of being like Norway. Use your local renewable natural resources to generate a lot of electricity (hydro for Norway and wind for Scotland), incentivize local adoption of EVs, and export your oil to the suckers.

Oil Suckers: Worse than Mosquitoes.

Glad to hear that Scotland has its act so together on renewables. Any island nation would do very well to transition away from fuels that come from elsewhere. Abandon Oil now… Forget the Middle East.

Its a very good policy to offer interest free loans to EVs. Scotland can generate lot of power from Hydro resources, Wind resources (with powerful offshore winds) and also the upcoming Wave power.

If someone cribs about this, then they can offer a 0.1% APR (Annual Interest) loans as a nominal charge.
Since most of the British don’t travel outside their island nation, they can live with short range EVs easily.
Also they can install Slow and Fast chargers everywhere for the EVs to charge.

Just 10,000 chargers are enough for the whole country.

“Since most of the British don’t travel outside their island nation…” Nor do Americans (5 times less, in fact)!

“Just 10,000 chargers are enough for the whole country.” There are only 7k petrol stations!

A £50k loan is a bit daft considering only the Tesla can make full use of it. And £2.5m is only 50 Teslas! Not going to make much of a dent, is it?! Not complaining, tho! They could have offered £10k max interest free instead and that would easily make up the difference between an EV and comparative ICEV … and then their £2m5 would have gone much further…