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Date Posted: 22 July 2025

Big News: You Can Now Get Up to £3,750 Off a Brand-New Electric Car!

The Electric Car Grant Is Back – and It’s Better Than Ever

If you’re unsure about switching to an electric vehicle (EV), there’s never been a better time than now! The UK Government has just recharged the market with an exciting new Electric Car Grant and believe it or not, it could save you up to £3,750 on your next EV purchase! With EV ownership becoming more rewarding and easier than ever, making the switch to greener driving is now a smart move for both your wallet and the planet.

What is it exactly?

The government is making electric vehicles more affordable for everyday drivers increasing accessibility to families, commuters and first time EV buyers. A whopping £650 million of the grants funding will be available to purchase new zero emission cars which are priced at or under £37,000. Grants of £1,500 or £3,750 (depending on manufacturer) will make these cars even more affordable, giving people access to the savings associated with driving electric. To qualify, the EV must have a minimum battery range of 100 miles, with greater discounts offered for vehicles produced more sustainably. Best of all, the discount is automatically applied at the dealership, no extra steps needed from you.

Why is the government doing this?

The grant is part of a £650 million push to help Britain hit its zero-emissions targets and phase out new petrol and diesel cars by 2030. An EV can drastically reduce running costs, offering long-term financial benefits that help ease pressures from the cost of living crisis. For those who drive regularly and have access to cheap charging, the savings can be significant! It will also support UK and international manufacturers that meet the highest sustainability standards, helping to drive growth across the automotive and charging industries.

 

The grant is from 16th July, and a list of vehicles will be updated as soon as they are approved. The scheme has funding available until the financial year 2028 to 2029. However, the end date of the scheme isn’t fixed and could soon change. The rules may change or they may close the scheme early without warning, especially if funds are low.

Benefits of owning an EV

Still need convincing to go electric? Here are some more reasons as to why you should make the switch to an EV:

 

  • They are cheaper to fuel with the same amount of mileage 
  • EVs have fewer moving parts than traditional cars, leading to less wear and tear and potentially lower maintenance costs.
  • Zero tailpipe emissions - cleaner air for our towns and cities
  • A much quieter drive which creates a more relaxing mood
  • Charge at home overnight and start each day with a full battery
  • With over 82,000 public charging points now available in the UK, driving an EV is easier than ever.

Extra Charging Support

Along with the car discounts, the government is investing in other things. These include £25 million of funding to install cross-pavement charging channels for terraced streets. This prevents tripping hazards and allows people without driveways to charge their EV’s from their own home supply. Additionally, a £30 million grant of funding will be used to install chargepoints for vans, coaches and HGVs, which will support the transition of the road freight and coach sectors. Then, £8 million will be used towards installing EV chargers at NHS locations, along with updates to allow signs for EV hubs to appear on major roads. 

Our Take at D. M. Keith

We love anything that makes owning a car more affordable and sustainable, especially when it helps support the incredible innovation happening in our brands. This support could help more customers take the leap to an EV! We’re already having customers asking “Can I test drive one this weekend and can I combine the grant with existing offers or finance deals?” Spoiler, you can!

Cupra's £1,500 UK Grant Guarantee

As electric driving is becoming more accessible than ever, Cupra are staying ahead of the game with their EV Grant Guarantee! Offering peace of mind and crazy savings even before the UK Government’s new grant has officially launched.

 

In true Cupra style, they’re not messing around! Instead, they’re committing to a £1,500 saving (inc. VAT) on qualifying Cupra born models, ahead of the government’s final decision expected later in August.

 

Here’s all the info you need to know:

  • The grant applies to the following Cupra Born models:
  • CUPRA Born V1
  • Exclusive Edition
  • CUPRA Born V2
  • CUPRA Born V3
  • The grant is only available to Retail customers 
  • It applies to orders placed between 1st - 31st August 2025
  • Vehicles must not be delivered before 1st September
  • Cupra will honour the grant, even if the Government’s final terms are delayed or change, so you are covered no matter what
  • Retailers will apply the grant upfront, and Cupra UK will reimburse them 7 days post-registration
  • The guarantee could be withdrawn before 31st August, but Cupra have promised to give a fair warning 

 

Some really exciting news! The Cupra Born V1 79kWh is now starting from just £36,995 On-The-Road, making this high-performance EV even more accessible, and qualifying it for the Government's grant threshold.

 

So if you are already thinking about purchasing a Cupra Born or you’re just starting your EV journey, this grant is a great way to secure a great deal with zero stress.

Skoda's £1,500 UK Grant Guarantee

Skoda are helping you make the move to electric even easier with their own Electric Car Grant Guarantee, which gives customers the confidence to order now without having to wait for the final confirmation from the Government.

 

In reply to the Government’s new grant which was announced on 15th July 2025, Skoda UK are offering a £1,500 discount for qualifying electric models, even if those models don’t end up on the final eligible list of vehicles. 

 

Here’s how the Government grant will work:

  • The grant has been extended to 21st September
  • Take delivery on or after 1st September 
  • If your Skoda applies for the Government’s £1,500 grant, it will be applied automatically
  • If your vehicle doesn’t qualify then Skoda will still give you the £1,500 as a manufacturer discount, so it’s a win-win either way!

 

The eligible Skoda models are:

  • Elroq: SE 50, SE L 60, Edition 60, Sportline 60, SE L 85, Edition 85 and Sportline 85
  • Enyaq: SE L 60, Edition 60

 

This means that you can order your favourite Skoda electric vehicle today with total peace of mind. Knowing that those savings are locked in, no matter what happens! This guarantee makes sustainable driving even more achievable for the UK drivers ready to make the switch!

BYD's £1,500 UK Grant Guarantee

Whilst BYD may not yet be eligible for the Government’s Electric Car Grant, that hasn’t stopped them from delivering outstanding value and to new and used EV drivers. BYD are taking matters into their own hands instead of waiting for the grant approval. Focusing on long-term ownership benefits that go well beyond a one-time discount.

 

Here is what BYD are currently offering. Five years free servicing on selected new BYD models including: Dolphin Surf, Dolphin and the Atto 3. This offer extends to Approved Used BYD vehicles bought through BYD’s official UK retail network. This is a brilliant move to make electric more accessible to used car buyers. BYD is also increasing your peace of mind with a huge 8-year / 155,342-mile (200,000km) power battery warranty (with 70% State of Health). This will cover all new and existing BYD electric vehicles and DM-i (Dual Mode - intelligence) models currently on UK roads.

 

BYD’s approach acknowledges that electric vehicle buyers are thinking ahead into the future, not just about the purchase price, but about ongoing costs, reliability and confidence in their EV investment. 

The Sales and Marketing Director at BYD, Steve Beattie commented.

“We understand that customers are looking for more than just savings upfront – they want lasting value and assurance... This five-year servicing offer is our way of giving back to drivers who choose BYD.”

So, while they may not be on the official grant list (yet), BYD is showing clear commitment to supporting UK EV drivers at every stage – from the first test drive to years down the road.

Find Out More

Ford’s £1,500 UK Grant Guarantee

The UK government recently announced a new electric car grant offering discounts of either £1,500 or £3,750 for UK buyers of battery electric vehicles which meet certain criteria.

Ford is currently working with the UK government to determine which level of grant will be made available for the new all-electric Puma Gen-E and E-Tourneo Courier.

To provide some trading certainty whilst this process is ongoing, they will launch the Ford Electric Car Grant Guarantee. They will guarantee a £1,500 grant for retail and Ford Lease customers only.

Ford will confirm eligibility for the Electric Car Grant or the requirement to use the grant guarantee in advance of 1st September. 

Are you ready to make the switch?

Across all of our 29 D. M. Keith sites, we have EV experts ready to talk you through your options. And don’t worry, there’s no pressure! Just great advice and a cuppa whilst you browse. You can pop in for a test drive, book an EV consultation online or just give us a shout to chat things through.

Get in touch

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D. M. Keith Limited, D. M. Keith (RGL) Limited, D. M. Keith (RGD) Limited, D. M. Keith (CA) Limited & Ringways (Hire & Leasing) Ltd are an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 313486). Permitted activities include advising on and arranging general insurance contracts and acting as a credit broker not a lender.

We can introduce you to a limited number of finance providers. We do not charge a fee for our Consumer Credit services. We do not act as a financial adviser, or fiduciary. We act in our own interest, whichever lender we introduce you to, we will typically receive commission from them based on either a fixed fee or a fixed percentage of the amount you borrow. Any and all commission amounts will be fully disclosed to you as part of your sales journey. You will be required to give your fully informed consent to our receipt of this commission. By doing this, you acknowledge that you understand our role as a credit broker, and that we will receive a financial incentive if you take out a loan from a lender that we introduce you to.

All finance applications are subject to status, terms and conditions apply, UK residents only, 18s or over, Guarantees may be required. All group companies VAT registration No. GB169785889.

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