The short answer
The Electric Car Grant takes up to £3,750 or up to £1,500 off the price of a qualifying electric car. Which band a car falls in depends on the car, not you.
You don't apply for it. The seller builds it into the price, so a qualifying car just costs less on the forecourt.
There's one condition that decides everything else. It applies to new cars only, at the point of first registration. A used electric car doesn't qualify, whoever buys it.
That's worth knowing if you're shopping used. A lot of coverage doesn't mention it until the end.
The two bands, and what puts a car in one
Band 1 is worth up to £3,750. Band 2 is worth up to £1,500.
The split isn't about range, size or price. It's about how cleanly the car was made. The government scores each model on where its battery was produced and where the car was assembled. That's weighted 70% to the battery and 30% to assembly, using the carbon intensity of the local electricity supply.
A manufacturer also has to pass an environmental assessment before any of its cars qualify.
The result can surprise you. Two cars at the same price, from the same showroom, can land in different bands or miss out entirely, purely because of where the batteries came from.The £37,000 rule is stricter than it looks
A car qualifies only if its recommended retail price is £37,000 or below.
That figure is the sticker price before the grant, and it includes more than you'd expect. VAT counts. So do mandatory extras, delivery charges and admin fees. So does the battery, even when the battery is leased separately.
There's one exception worth knowing. Where a cheaper version of the same model sits under £37,000, dearer versions of that model can still qualify up to £42,000. So a trim above the cap isn't automatically out.
Which cars are on the list
Both bands cover more cars than most write-ups suggest. The list grows as manufacturers get models certified.
Band 1 includes familiar small and mid-size cars. They include the Renault 4, the Nissan Leaf, the Fiat 500e, the Ford Puma Gen-E and the Hyundai Kona Electric.
Check the exact version, not just the model name. The Renault 5 with the 52kWh battery is Band 1, and the same car with the 40kWh battery is Band 2. That's £2,250 of difference behind one badge. Band 2 is broader still, taking in much of the Vauxhall, Peugeot, Citroën, Skoda and Volkswagen electric ranges.
Those are examples, not the full list. The official list is on gov.uk. It's updated as models are certified, and it's the only version worth trusting.
That last point matters more than it sounds. Most guides to this grant are working from a snapshot taken when they were written, and they don't say so. Check the government list for the specific car you want before you rely on a discount.
What this means if you're buying used
Nothing directly. Say that plainly.
There's no used equivalent of this grant, and buying a grant-eligible model second-hand doesn't bring the discount with it. The money goes to the first registration and stays there.
The grant may still affect used prices indirectly. The government's own assessment says residual values of nearly new electric cars may fall in response to the lower new prices the grant creates. That could happen in the near term as well as over the longer one. That's a "may", and it applies to nearly new cars rather than to used electric cars generally.
If you're buying a used EV, your money's better spent on the two things that decide what it costs to own. Battery health is the first, and our guide to checking a used electric car covers how to read it. Charging is the second, and used-car running costs sets out what home and public charging really work out at.
A history check is worth more to you than a grant you can't have. Our used-car buying guides cover the rest of the checks.
Common questions
Is there an electric car grant for used cars?
No. The Electric Car Grant applies to new cars only, at the point of first registration, and there's no used-car equivalent. Buying a car that qualified when it was new doesn't pass the discount on to you.
Do I have to apply for the Electric Car Grant?
No. The seller applies it as a discount in the purchase price, so there's no form and no claim. If a dealer tells you to apply for it yourself, something is wrong.
What's the difference between Band 1 and Band 2?
Band 1 is worth up to £3,750 and Band 2 up to £1,500. The band depends on how cleanly the car was manufactured, scored on where the battery was made and where the car was assembled. It has nothing to do with the car's range, size or price.
Does the £37,000 cap include options?
It includes VAT, mandatory extras, delivery charges and admin fees, and the battery even where the battery is leased. A car close to the cap can be pushed over it by charges you might see as separate from the price.
Can I get the grant on a lease or salary sacrifice car?
Salary sacrifice orders stopped being eligible on 17 July 2026, and orders placed through such a scheme are cancelled. Ordinary leasing can still qualify, but the car can't be registered to the leasing company as the end customer. Check how a specific deal is structured before counting on the discount.
How long will the grant last?
It's funded to 2030 and currently has a closing date of 31 March 2030. That isn't a guarantee. The scheme can close early if the funding runs out, and the government has said grant levels and criteria can change without notice. Treat any figure here as correct at the time of writing.