The Scottish government has recently announced an extension of the Low Carbon Transport Scheme which includes interest-free loans for used electric vehicles. The extension to the scheme will enable individuals to obtain an interest-free loan for purchases of used electric vehicles. To date, the Low Carbon Transport Loan has provided over £85m in interest-free loans to help drivers purchase a new electric vehicle.
The amount of the loan offered will be up to £20,000 and the loan can be obtained over five years. It has also been confirmed that support will be available for those who use e-bikes and e-cargo bikes. The loan is due to take effect from the end of September 2020.
The Low Carbon Transport Scheme aims to encourage greener travel by helping more drivers make the switch to an electric vehicle. It is hoped that the loan will help those who could previously not afford to purchase an electric vehicle.
Cabinet Secretary for Transport, Infrastructure and Connectivity, Micheal Matheson, said:
“Expanding our Low Carbon Transport Loan will make it easier for more people to access the benefits of modern ultra-low emission vehicles. The global shift towards electric vehicles means that prices are coming down year on year, but the price point for new vehicles remains high for many. We want to make it easier for people to switch by providing interest-free finance options for used vehicles. We’ve set a bold ambition to phase out the need for new petrol and diesel cars and vans by 2032. Globally, it’s clear that the shift to electric vehicles is becoming an inevitability – but no one who requires a vehicle should be left behind from the benefits these modern vehicles can bring, both in terms of running costs and the environmental benefits. This is where we can help.”