EV Incentives 2025: All the ways you can save money on an EV today
The UK government has introduced a major incentive for electric vehicle (EV) buyers: a new Electric Car Grant offering up to £3,750 off eligible models. Launched in July 2025, the scheme is designed to make EVs more affordable while supporting Britain’s move towards net-zero.
How Does the Electric Car Grant Work?
The grant provides a discount at the point of sale - no need for buyers to apply on new electric cars priced up to £37,000.
£3,750 is available for the greenest EVs made to high sustainability standards.
£1,500 is available for vehicles meeting baseline criteria.
The scheme runs until the 2028/29 financial year, or until funds are exhausted. Manufacturers must meet strict environmental requirements to qualify, and the first official list of eligible cars is expected by 11 August 2025.
Why Is the Government Doing This?
This grant is part of a larger £650 million EV support package, which also includes:
A £63 million investment in EV charging infrastructure
A national push toward ending petrol and diesel car sales by 2030
Other Ways to Save on an Electric Vehicle in 2025
Besides the new Electric Car Grant, here are four other ways you can save money by going electric:
1. Tax Savings with Company EVs
Pay just 2% Benefit-in-Kind (BiK) tax
Save up to 40% with a salary sacrifice car
Perfect for company car drivers or small business owners
2. £350 Home Charger Grant
Covers part of the cost to install a charger at home
Available to renters, flat owners, and small businesses
3. Buy Now, Beat the 2025 Road Tax Change
EVs registered before April 2025 still get free road tax (VED) for the first year
After April, new EVs will need to pay road tax like petrol cars
Quick FAQs
Q: Who can get the new £3,750 grant?
Anyone buying a qualifying brand-new electric car under £37,000. The full list of cars will be released soon.
Q: Do I need to apply for the grant?
No. The discount is applied automatically when you buy your car.
Q: Is this grant available on used EVs?
No. The grant is only for brand-new electric cars.
Looking for your next electric car in Nottingham, Leicester, Loughborough or Lincoln?
At Sandicliffe, we welcome this move to make EV ownership more accessible. With dealerships across the Midlands, including Ford, BYD, MG, Mazda, XPENG and GWM we’re well placed to help customers take advantage of these savings as soon as eligible models are confirmed.
Visit your local Sandicliffe dealership or explore our range of new electric cars and used electric cars online. Please note the new Electric Car Grant is only available on brand‑new electric vehicles. Our team is here to help you make the most of the new government grant, contact us today.
