As London closes its ULEZ scrappage scheme, is there a case for a national programme?
The Mayor of London's scrappage scheme that provided financial assistance to help eligible London residents, businesses and charities scrap, donate, or retrofit vehicles that did not meet the Ultra Low Emission Zone (ULEZ) emissions standards closed on 8th September 2024.
The new government is set to reintroduce the ban on the sale of new internal combustion engine (ICE) vehicles in 2030 after its predecessor delayed the plan to 2035. The policy change raises the question of whether financial assistance is needed to encourage individuals to switch to a battery electric vehicle (BEV), whether new or used. According to research published earlier this year by MotoNovo, many car buyers would welcome such a policy.
The research, undertaken independently by Opinium Research, involved 2,000 people and revealed that 81% of people planning to buy a used car would not consider switching to a BEV because of the high purchase cost. However, a government grant or incentive would encourage half (51%) of potential buyers to make the move.
Today, the availability of plug-in grant support from the government is limited to;
They are available to people and businesses buying new models only, with the grant process managed by the retailer enabling them to include it as a discount to the purchase price.
The only other support available to acquire a BEV is through salary sacrifice schemes, which focus on new cars and which are not available to all individuals.
Regarding used BEV purchase support, the only option we know for used EVs is available to anyone living in Scotland (they must have lived at their address for at least six years) and who meets the eligibility criteria. Loan availability is limited to BEVs (no other EVs, such as used hybrid EVs, are included), and the vehicle must be supplied by a recognised car dealer.
This funding offers interest-free loans, funded by Transport Scotland and repayable over up to six years, to help spread the cost of a used BEV, including cars, vans, motorcycles, or mopeds. In the year to March 31st 2024, 1,162 loans were granted.
Encouraging everyone to buy a BEV, whether it is new or used, can help accelerate the road to net zero. MotoNovo wants to reiterate its call to the new government to offer an incentive or grant to encourage more people to switch to a new or used BEV. It cannot be right that government support is only available to a section of the population and only for new vehicles.
