If you’ve been thinking about switching to an electric car but the price tag has been putting you off, there’s some good news. The Electric Car Grant (ECG) is here, and it could make your next EV lease a lot more affordable — no confusing paperwork, no hidden hoops to jump through.
In this guide, we’ll explain in simple terms what the grant is, who it’s for, and how it can bring your monthly payments down.
So, what exactly is the Electric Car Grant?
The ECG is a government-backed discount for certain electric cars. If the car you’re looking at costs £37,000 or less, you could get up to £3,750 off its price before it even reaches you.
The best bit? You don’t need to apply. The discount is taken off by the manufacturer before the car is leased to you, so your monthly payments are lower from day one. No forms, no waiting.
How much could you save?
The grant amount depends on the car’s “sustainability rating” — that’s just a fancy way of saying how it was made and where its parts come from.
- Band 1 cars (most sustainable) — up to £3,750 off
- Band 2 cars — up to £1,500 off
Even at the lower rate, this can make a big difference to your monthly lease cost, especially if you’re going for a shorter contract.
Why this is great news for leasing
When you lease a car, the monthly payment is based on its value. The ECG brings that value down before the lease is calculated — which means your monthly payments come down too.
It’s a win-win:
- Lower monthly costs
- No big upfront payment
- No risk of the car’s value dropping
If you’ve had your eye on an EV but thought it might stretch your budget, this could be the moment to take another look.
Who’s eligible?
You can benefit from the ECG whether you’re leasing personally or through your business — as long as the car is on the approved list and under the £37,000 price limit.
We’ve already got a range of eligible models available. View our latest electric car lease deals.
How long will it be around?
The grant is available from 16 July 2025 until at least the 2028/29 financial year, or until the funding runs out. If demand is high, the pot could go quickly — so if you’re thinking about it, don’t wait too long.
Why the ECG matters
Electric cars are still generally more expensive upfront than petrol or diesel, even though running costs are lower. The ECG helps close that gap, making it easier for more drivers to go electric.
And with the UK’s zero-emission targets getting closer, this is just one of several incentives — like charging grants and reduced Benefit-in-Kind tax — making EVs more attractive than ever.
Your next step
If you’re wondering whether the car you want qualifies, our team can check for you in minutes and run the numbers so you can see the difference in your monthly payments.
Get in touch with us or explore our current electric car deals.
Bottom line:
The Electric Car Grant is a simple, no-fuss way to get behind the wheel of a brand-new EV for less. It’s applied automatically, it works for both personal and business leasing, and it could make your ideal electric car fit comfortably into your budget.