Do we only have until 2030 to get an electric car?

As you may be aware, the UK government has pledged to ban the sale of new fully petrol or diesel cars from 2030. New mild hybrid cars will also be banned from 2030, but full hybrids and plug-in hybrids will be permitted for sale until 2035.

You will still be able to buy or sell a second-hand petrol or diesel car after 2030, as the ban only applies to new vehicles. You can also continue to own and drive an existing petrol or diesel car, and petrol stations are expected to remain in operation to serve these vehicles.

However, it makes sense that if you are planning to change your car in the next year or two, you need to consider the electric option. But how does the cost compare with petrol and diesel cars, and is there any financial help available to buy and run an electric car?

In this article we look at three areas of finance related to electric cars:

• Discount on the cost of an electric car;
• Grants for home electric car charging installation;
• Reduced car tax for electric cars.

Discount on the cost of an electric car

Electric cars have the reputation of being expensive. And to date, they have usually cost more than their petrol or diesel equivalent. But that is in the process of changing.

The government has recently introduced a grant scheme for electric cars. The scheme provides for discounts of either £1500 or £3750 off the price of the car, with the most environmentally friendly cars being given the biggest reductions.

Some examples of electric cars that are already eligible for discounts are:

• £3750 discount

  • Ford E-Tourneo Courier
  • Ford Puma Gen-E
  • Citroën e-C5 Aircross Long Range

• £1500 discount

  • Alpine A290
  • Citroën e-Berlingo, e-C3, e-C3 Aircross, e-C4, e-C4 X, e-C5 Aircross, e-SpaceTourer
  • Cupra Born
  • DS 3 E-Tense, N°4 E-Tense
  • Mini Countryman Electric
  • Nissan Ariya, Micra
  • Peugeot e-208, e-2008, e-308, e-308 SW, e-408, e-Rifter, e-Traveller
  • Renault 4 E-Tech, 5 E-Tech, Megane E-Tech, Scenic E-Tech
  • Skoda Elroq, Enyaq
  • Toyota bZ4X, Proace City Verso
  • Vauxhall Astra, Astra Sports Tourer, Combo Life, Corsa, Frontera, Grandland, Mokka, Vivaro Life
  • Volkswagen ID.3, ID.4, ID.5

Car manufacturers can apply for a model of car to be given a grant and, once approved, this will then take the money off the price of the car. Customers will automatically benefit from the reduced price in dealerships and do not have to do anything extra to get the discount.

So far it is estimated that over 20,000 people have benefited from these discounts.

Grants for home electric car charging installation

One of the major concerns about electric cars is whether the UK has the infrastructure to support them, particularly in terms of public charging facilities for electric vehicles (EVs). Public EV charging is expected to improve significantly before 2030, with the UK government aiming for 300,000 public chargepoints by then.

Some consumers may wish to consider electric vehicles as one of several options, depending on their individual circumstances. . 

The EV Chargepoint Grant can provide you with up to 75% or £350 towards the cost of a home charger installation. The grant is available either to people who own flats, or who rent their accommodation. Unlike the earlier scheme – The Electric Vehicle Homecharge Scheme – it is not available if you own your own house.

Reduced car tax for electric cars

Owners of new electric vehicles registered after 1st April 2025 pay car tax at the lowest rate of £10 for the first year, and then pay the standard £195 annual car tax from year 2.

Electric vehicles costing over £40,000 are also subject to the expensive car supplement from year 2. The expensive car supplement, which applies to any new vehicle, is an additional annual fee levied on vehicles with a new list price of £40,000 or more.

The expensive car supplement is currently £425 per year, which is added to the £195 standard tax, resulting in a total of £620 per year car tax from year 2 onwards. If you still have the car after year 6, the expensive car supplement will no longer be charged, and the car tax will then be £195 per year (or whatever the standard charge is by then).

We hope that the information in this article has helped you to understand more about the timescale for electric cars in the UK, and the financial help available to buy and run one. 

Buying a car is a huge financial decision, whether you are buying new or second hand. If you are looking to replace your car in 2026, there are many different ways to finance your car purchase. In most cases, you will need a deposit for the car and Loans 2 Go may be able to help with this as we offer personal loans from £250 – £2,000. So if you need some extra help, do get in touch with us at Loans 2 Go. Full details, including terms and conditions are available on our website. Borrowing is optional and may not be suitable for everyone, so always consider your circumstances and affordability before applying.

Also remember to visit us here again soon for more hints and tips on family finances and everyday living.