EV funding?
You've got options.
Financing your electric fleet is a big decision, but it doesn’t need to be complicated. Get the essential lowdown on funding, grants and charging solutions.
Which EV funding is right for you?
Business Contract Hire
Ideal if you know exactly what you need from your vehicles and want costs and admin sorted.
Salary Sacrifice
Ideal for perking up your perks by giving employees the chance to save up to 40% on a brand-new EV.
Bank funding
Ideal if you need quick access to funds, want to own the EV or need flexibility on mileage and wear.
Business Contract Hire (BCH)
What's included?
- 24–48-month contract
- Initial rental + fixed monthly payments
- Service, Maintenance and Repair plan inc. MOT and tyres
- Choice of any brand EV
How it works
The business leases for a chosen time period and with an agreed maximum annual mileage. Then simply hand back the vehicle at the end of the contract.
Pros of BCH
- We take on the risk of uncertain residual values
- No hassle or separate outlay for maintenance
- Monthly payments are 100% tax allowable
- Claim back 100% VAT on SMR plan
- BiK tax is currently only 3% for EV company car drivers.
Cons of BCH
- Potential end-of-contract costs – you cover excess mileage and damage beyond ‘reasonable wear and tear’ or over £100, in accordance with BVRLA Fair Wear & Tear Guide
- Early termination charges apply if you want to end your agreement early
What's included?
- 24–48-month contract
- Initial rental + fixed monthly payments
- Service, maintenance and repair plan including MOT and tyres
- Choice of any brand EV
How it works
The business leases for a chosen time period and with an agreed maximum annual mileage. Then simply hand back the vehicle at the end of the contract.
Pros of BCH
- We take on the risk of uncertain residual values
- No hassle or separate outlay for maintenance
- Monthly payments are 100% tax allowable
- Claim back 100% VAT on SMR plan
- BiK tax is currently only 3% for EV company car drivers
Cons of BCH
- Potential “end of contract” costs – you cover excess mileage and damage beyond ‘reasonable wear and tear’ or over £100, in accordance with the BVRLA Fair Wear & Tear Guide
- Early termination charges apply if you want to end your agreement early
Salary Sacrifice
The new work perk everyone’s talking about is here. EV Salary Sacrifice is the smart way to give your employees low-cost access to EVs as their personal cars. There’s no cost to the business and minimal admin required.
What's included?
- 24–48-month contract
- Employee makes fixed monthly payments
- MOT, SMR, insurance, road tax, breakdown cover
- 24/7 driver support
- Lifestyle Support payment waiver
- Choice of any brand EV
How it works
Pros of Salary Sacrifice
- Employee saves up 40% compared with privately leasing – manufacturer discounts, routine motor bills and maintenance are included, plus no upfront deposit
- No admin – we set up, onboard employees and manage the scheme for you
- No risk, thanks to our comprehensive Lifestyle Support waiver. If the employee leaves, they can simply hand back the car with no cost to them or the business
Cons of Salary Sacrifice
- Reduces gross pay, which can affect pension, access to credit, loans and mortgages
- The scheme isn’t available if it will reduce a salary below minimum wage
What's included?
- 24–48-month contract
- Fixed monthly payments
- MOT, SMR, insurance, road tax, breakdown cover
- 24/7 driver support
- Lifestyle Support payment waiver
- Choice of any brand EV
How it works
Pros of Salary Sacrifice
- Employee saves up 40% compared with privately leasing – manufacturer discounts, routine motor bills and maintenance are included, plus no upfront deposit
- No admin – we set it up, onboard employees and manage the scheme for you
- No risk, thanks to our comprehensive Lifestyle Support waiver. If the employee leaves, they can simply hand back the car with no cost to them or the business
Cons of Salary Sacrifice
- Reduces gross pay, which can affect pensions, access to credit, loans and mortgages
- The scheme isn’t available if it will reduce a salary below the minimum wage
Bank funding
What's included?
- 12-, 24- or 36-month loan agreement
- Fixed monthly payments inc. VAT and interest
- Choice of any Volkswagen Group brand EV (Audi, Bentley, Bugatti, CUPRA, Ducati, Lamborghini, Porsche, SEAT, Škoda, and Volkswagen.)
How it works
Pros of bank funding
- Quick access to funds – when credit is approved for your first EV, 80% of the paperwork is sorted. So after that, you’ll have fast access to funds for future EVs.
- No deposit or payments for the employee
- No end-of-contract excess mileage or damage charges – ideal if difficult to predict usage
- Access attractive rates across Volkswagen Group
- Tax relief TBC
- Monthly payments are 100% tax allowable
- Claim back 100% VAT
- You’re in good hands with Volkswagen Bank’s 60 years of experience
Cons of bank funding
- Bank loans are subject to interest and changes in interest rates
- Your business takes on the risk of unpredictable residual values
- No tax or NI benefits for the employee or the business
What's included?
- 12-, 24- or 36-month loan agreement
- Fixed monthly payments including VAT and interest
- Choice of any Volkswagen Group brand EV (Audi, Bentley, Bugatti, CUPRA, Ducati, Lamborghini, Porsche, SEAT, Škoda, and Volkswagen)
How it works
The business owns the vehicle from day one – it applies for funding from Volkswagen Bank for the car’s invoice value including VAT. The business repays a fixed monthly amount including interest over a chosen time period. At the end, the business makes a balloon payment and then either sells on the vehicle, potentially making a profit, or keeps the vehicle.
Pros of bank funding
- Quick access to funds – when credit is approved for your first EV, 80% of the paperwork is sorted. So after that, you’ll have fast access to funds for future EVs
- No deposit or payments for the employee
- No end-of-contract excess mileage or damage charges – ideal if difficult to predict usage
- Access attractive rates across Volkswagen Group
- Tax relief TBC
- Monthly payments are 100% tax allowable
- Claim back 100% VAT
- You’re in good hands with Volkswagen Bank’s 60 years of experience
Cons of bank funding
- Bank loans are subject to interest and changes in interest rates
- Your business takes on the risk of unpredictable residual values
- No tax or NI benefits for the employee or the business
Introducing our EV infrastructure loans
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Going electric? There’s a grant for that.
Van or car, we’ll help you uncover electric vehicle grants and charging infrastructure loans for business. Plus, we’ll talk you through charge point solutions and incentives.
Electric car grants (up to £3,750 discount)
The seller will include the discount in the purchase price – the amount depends on whether the EV is in Band 1 or Band 2.
Cars must meet the following criteria:
- Listed in Band 1 or Band 2 with the HMRC scheme
- M1 passenger vehicle
- Emit 0g/km CO₂ at the tailpipe
- Minimum battery range of 100 miles (160km)
- Have a 3-year or 60,000-mile warranty
- Battery powered with an 8-year or 100,000-mile warranty
- Meet minimum sustainability criteria of production chain
Electric van grants (up to £5,000 discount)
The seller will include the discount in the purchase price. Grants are capped based on the Gross Vehicle Weight. Vans must meet the following criteria:
- Listed with the HMRC scheme
- Emit less than 50g/km CO₂
- Offer an electric range of at least 60 miles
Small vans
- Under 2,500kg Gross Vehicle Weight (GVW)
- O₂ emissions less than 50g/km
- Emission-free range of at least 96km (60 miles)
- Up to 35% discount on the purchase price, or up to £2,500. Apply for up to 1,500 eLCV grants each year – limit resets 1 April every year
Large vans
- 2,500kg – 4,250kg Gross Vehicle Weight (GVW)
- CO₂ emissions less than 50g/km
- Emission-free range of at least 96km (60 miles)
- Up to 35% discount on the purchase price, or up to £5,000. Apply for up to 1,500 eLCV van grants each year – limit resets 1 April every year
Workplace Charging Scheme
The Workplace Charging Scheme offers vouchers to give your business up to £350 off the purchase and installation cost of each charge point, up to a total of 40 sockets. The scheme covers up to 75% of the total costs of the purchase and installation of EV charge points (including VAT), capped at a maximum of:
- £350 per socket
- 40 sockets across all sites per applicant – for instance, if you want to install them at 40 sites, you will have one socket available per site
It is open to eligible:
- Businesses
- Charities
- Public sector organisations
- Small accommodation businesses
EV Charge Point Grant
The EV Charge Point Grant for Renters and Flat Owners funds 75% of your employees costs of buying and installing an EV charge point, or up to £350 (inc VAT).
Employees must meet all criteria:
- Own, lease or have placed an order for a qualifying vehicle
- Have dedicated off-street parking at the property
- Provide landlord contact details if renting
- Choose a qualifying installer (who applies for the grant)
EVolve – change with us
Looking for guidance in your move to electric? Look no further. Our EVolve framework guides you at every stage of your electric transition, and on into the future. So, no matter what size your fleet and whether you’re shaping your EV company car policy or choosing vehicles, you’ve got our support.
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