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. The band depends on the car, not you.
You don't apply for it. The seller takes it off the price, so a qualifying car costs less on the forecourt. If a dealer tells you to apply for it yourself, something's wrong.
One condition decides everything else. It only applies to new cars at the point of first registration. A used electric car doesn't qualify, whoever buys it.
Keep that in mind if you're shopping used. Plenty of coverage leaves that 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. The score is 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.
That can surprise you. Two cars at the same price, from the same showroom, can end up 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's 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 it's leased separately.
There's one exception worth knowing. Where a cheaper version of a car sits under £37,000, dearer versions can still qualify up to £42,000.
They must belong to the same official test family. In practice, a version with a different battery size, drive layout or power output isn't covered. Gov.uk judges it on the price of its own cheapest version instead. So a higher trim isn't automatically out.
Which cars are on the list
Both bands cover more cars than you might expect. The list grows as more models are certified, so a car that wasn't on it when you last looked may be on it now.
Band 1 includes familiar small and mid-sized cars. The Renault 4, the Nissan Leaf, the Fiat 500e, the Ford Puma Gen-E and the Hyundai Kona Electric are all in Band 1. Band 2 is broader still and covers much of the Vauxhall, Peugeot, Citroën, Skoda and Volkswagen electric ranges.
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. There's a difference of up to £2,250 behind one badge.
A car can change band without changing its name. In October 2026, gov.uk moved the Renault Megane from Band 2 to Band 1. That's up to £2,250 more off. The band depends mostly on where the battery is made, so a battery made somewhere else can move a car.
The gov.uk entry doesn't name a battery or version. So I'd ask the dealer which band they're claiming for the car in front of you.
Timing matters too. You get the amount available on the date of purchase. A car bought before a move stays on the old amount, even if it hasn't been delivered or registered yet.
These 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 one worth trusting.
A guide written before a band change can still show the old figures. 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.
There's no equivalent grant for used cars, 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 term. The key word is "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 comes first. Our guide to checking a used electric car shows you how to check it. Charging comes second, and used-car running costs explains what home and public charging really cost.
A history check is more useful 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. Only a new car qualifies, 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.
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.
What if a car moves into a higher band after I've bought it?
You get the amount available on the date of purchase. A car bought before a move stays on the old amount, even if it hasn't been delivered or registered yet.
Does the £37,000 cap include options?
It includes VAT, mandatory extras, delivery charges and admin fees, and the battery even when it's 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?
Since 17 July 2026, a car registered to a dealer or manufacturer doesn't qualify, and gov.uk names salary sacrifice as one example. Orders like that are cancelled when they're found. Ordinary leasing can still qualify, but the leasing company can never be 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 guaranteed. 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.