Electric Vehicles"help to buy"

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NewcastleFalcon
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Electric Vehicles"help to buy"

Post by NewcastleFalcon »

Andy found this, and if you live in Scotland, a major help towards buying an electric car either new or now Used.
andy5 wrote:
16 Sep 2020, 23:52
Can't quite decide which thread this belongs on

https://electrek.co/2020/09/15/scotland ... -used-evs/

Scotland’s government will extend the Low Carbon Transport Loan to cover used EVs for the first time, starting on September 28. The extension will now enable an individual or business to obtain a loan of up to £20,000, interest free, over five years.

The loan is being expanded to help people who may otherwise be put off by the purchase price of electric vehicles.
The chapter and verse are here
https://energysavingtrust.org.uk/scotla ... hicle-loan
Current arrangements for new vehicles
The interest-free Electric Vehicle Loan, funded by Transport Scotland (an agency of the Scottish Government), currently offers drivers in Scotland loans of:

up to £35,000 to cover the cost of purchasing a new pure electric vehicle

up to £10,000 to cover the cost of purchasing a new electric motorcycle or moped

The loan has a repayment term of up to six years.
Now used vehicles are eligible
The extension (to used vehicles) will now enable an individual or business to obtain a loan of up to £20,000, interest free, over five years.
Regards Neil
Last edited by NewcastleFalcon on 17 Sep 2020, 10:52, edited 1 time in total.

Gibbo2286
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Re: Electric Vehicles.... "help to buy"

Post by Gibbo2286 »

I would assume that until the loan is paid off in full you're stuck with the car, so if it depreciates heavily, as they seem to be doing, you would quickly be in the position of still owing more than the car's worth.

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NewcastleFalcon
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Electric Vehicles"help to buy"

Post by NewcastleFalcon »

I would rather have a £10,000 interest free loan over 4 years to buy a used car, than pay finance charges to a bank/or under pcp/ hp etc. :?:

New anything is of course a depreciation nightmare, and as soon as you get the keys, you are in "the cars worth less than you paid for it"/finance-outstanding territory, ICE or Electric. When depreciation is wrapped up in the "per month" calculations it is hidden from view, but you are paying for it :-D

On the used EV front, even if my current leaf depreciates to zero in 4 years, so far I am well on course for having over £5,000 in fuel savings in hand doing over 12,000 miles a year. So if the car is worth nothing at the end of 4 years, 100% depreciation, ownership would have cost me £5,000 over 4 years.....£104/month. Fairly bargain basement even at those calculations.

If I was thinking about buying an electric car in Scotland, I would certainly look at picking up an interest free loan if its available.

Regards Neil

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CitroJim
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Re: Electric Vehicles"help to buy"

Post by CitroJim »

NewcastleFalcon wrote:
17 Sep 2020, 09:44
I would rather have a £10,000 interest free loan over 4 years to buy a used car, than pay finance charges to a bank/or under pcp/ hp etc. :?:
Not me! For the past thirty-odd years I have lived by a strict rule that I never borrow money to buy a car...

Or for any high-depreciation item for that matter...

In fact, I've not borrowed money for any purpose except to buy a house in all that time and 15 years ago I paid off my mortgage...

I'll go electric when I can afford to buy with hard cash and being a pensioner, that's a way off yet!

My old dad used to say 'Never a lender or a borrower be...' And I believe that's especially true of cars...

I will always live by that despite my bank begging me to borrow from them every time I log in to Internet Banking!!!

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bobins
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Re: Electric Vehicles"help to buy"

Post by bobins »

I do wonder if the Scottish help to buy scheme will help drive up the price of second hand BEV's a little - being that the second hand cars will suddenly become just that little bit more desirable and 'affordable'. The market will tilt a little more towards it being a 'sellers market'.