Ultra-low carbon car incentive

The British Vehicle Rental and Leasing Association has welcomed the DfT’s ultra-low carbon incentive plans, which include the Plug-in Car Grant and the Plugged-in Places support for charging infrastructure.

The Plug-in Car Grant will provide 25% towards the cost of purchasing a new ultra-low carbon car, capped at £5,000. It will be open to private and business fleet buyers.

“Business fleets already buy more than half of all cars registered each year so it makes sense that they will be able to take advantage of this incentive,” said BVRLA chief executive, John Lewis.

“A discount of up to £5,000 is attractive, but buyers are not stupid. Fleets will need some assurance that the electric vehicle they are buying will have a second-hand value in three, six or even ten years’ time.

“The three-year battery warranty outlined in the DfT’s qualification criteria is a bare minimum requirement so we are pleased that buyers will have to be given the option of paying for an extended 5-year warranty.”

The DfT has outlined the safety criteria required to qualify for the incentive, which says that vehicles need either EC whole vehicle type approval or to have met the EuroNCAP protocol or a similar crash test regime.

“Most car manufacturers have used the EuroNCAP safety standard as a marketing tool. Fleet buyers take their duty of care responsibilities very seriously and will expect the same levels of safety from any electric or plug-in hybrid vehicles,” said Mr Lewis.

The vital role that the vehicle rental industry can play in helping to reduce carbon emissions has also been recognised, with news that a group of rental companies will share in Transport for London’s winning bid for a Plugged-in-Places grant.

“It is great to see the car rental industry playing such an important role in the development of London’s electric vehicle charging infrastructure,” added Mr Lewis.