30 July 2025

The New £3,750 Electric Car Grant: A Simple Guide for UK Buyers

A Hyundai Electric Car

Summary

You may have seen the exciting news: a new £650 million government scheme has been launched in July 2025 to make buying a new electric car more affordable. However, the initial announcement has caused some confusion for both buyers and car dealers. At waEV-charge, we believe in clarity. This guide will cut through the noise and explain exactly what this new grant means for you, how it works, and how to make the most of it.

What is the New 2025 Electric Car Grant?

This is a new government incentive designed to encourage the switch to greener vehicles. The discount is applied directly by the car dealer at the point of purchase, so you don't have to worry about claiming it back yourself. Here are the key facts you need to know:

  • What is the maximum discount? You can get up to £3,750 off the price of a qualifying new electric car.
  • Which cars are eligible? The grant only applies to new electric cars with a list price of less than £37,000. This means some premium brands like Tesla, BMW, Mercedes, and Jaguar are currently not included in the scheme.
  • Why are there two different discount amounts? The scheme is split into two bands based on the manufacturer's sustainability efforts and production emissions:
    • Band 1: For the most sustainably produced vehicles, buyers receive the full £3,750 discount.
    • Band 2: For other qualifying vehicles, buyers receive a £1,500 discount.
  • How do I know which cars are covered? Manufacturers must apply for their vehicles to be included in the scheme. Your car dealer will be able to confirm if the specific model you're interested in is eligible and which discount band it falls into.

The Bigger Picture: The Grant is Just the Start of Your Savings

Receiving up to £3,750 off your new car is a fantastic start. But the real financial benefit of switching to an EV unfolds over years of ownership.

When you drive electric, you save on:

  • Fuel: Swapping petrol pumps for a home charger can cut your "fuel" costs by over 70%.
  • Tax: Electric cars benefit from lower or zero Vehicle Excise Duty (VED).
  • Maintenance: With fewer moving parts, servicing is simpler and cheaper.

Maximise Your Savings with a Home Charger

To unlock these incredible day-to-day savings, a home EV charger is essential. Relying solely on the public charging network is more expensive and less convenient. Installing a smart charger at home means you can wake up to a "full tank" every single morning, having charged overnight when electricity is cheapest. At waEV-charge, we provide and install market-leading smart chargers that put you in control:

  • waEV-charge EV1i (tethered): For ultimate plug-and-go convenience, fully installed for £927.
  • waEV-charge EV1s (untethered): For a sleek, discreet look on your driveway, fully installed for £887.

Note: If you are a renter or live in a flat, you may also be eligible for the separate £350 OZEV grant for your charger installation, further reducing your setup costs.

Your Next Step

The new car grant is a brilliant incentive to make the switch. Once you've chosen your new EV, the next logical step is to sort your home charging. Let us help you complete your electric vehicle setup.

Get a free, no-obligation quote for your smart home charger installation today.

www.waevcharge.co.uk/quote

This article was written by the waEV-charge Team. waEV-charge specialises in installing and manufacturing EV chargers for both home and commercial use in the UK. If you're interested in electric car chargers, click here to discover more about our products.