Reasons to lease a Hybrid: government subsidies

Date: September 6th, 2016

People looking to lease an electric or hybrid vehicle from AMG Autolease can take advantage of a government subsidy of up to £8,000 that is already baked into the monthly cost advertised on site.

This subsidy is designed to increase uptake of electrics and hybrids, and plays into the government’s commitment to reduce the UK’s CO2 emissions by 80% by 2050 (from their 1990 levels).

How does the government electric and hybrid subsidy work?

Vehicles are sorted into 3 categories depending on their total emissions and zero emission range, with vans categorised separately. The higher the emissions the lower the grant that is available, as a basic model.

When buying the car you are eligible to claim the grant as a refund after purchase, but when leasing the equivalent saving is already incorporated into the price. This means it is easier for you!

What are the categories for the government electric and hybrid vehicle subsidy?

Category 1 electrics and hybrids

  • Emissions of under 50g/km CO2
  • Must be able to travel over 70 miles with zero emissions
  • A grant of 35% of the cost of the car or £4,500 is given, whichever is lower

Category 2 electric and hybrids

  • Emissions of under 50g/km CO2
  • Must be able to travel between 10 and 69 miles with zero emissions
  • A grant of 35% of the cost of the car or £2,500 is given, whichever is lower

Category 3 electrics and hybrids

  • Emissions of between 50g/km and 75g/km CO2
  • Zero emissions range of at least 20 miles
  • A grant of 35% of the cost of the car or £2,500 is given, whichever is lower

Eligibility criteria for vans

  • Emissions under 75g/km CO2
  • Must be able to travel over 10 miles with zero emissions
  • A grant of 20% of the cost of the van or £8,000 is given, whichever is lower

Which electric and hybrid cars are eligible for the government subsidy?

There are plenty of vehicles to choose from within these criteria although, interestingly, none are currently available within category 3.

Most of these are available to lease through AMG – just use the box on the left to navigate to any car that piques your interest!

Category 1 vehicles

  • BMW i3
  • BYD e6
  • Citroen CZero
  • Ford Focus Electric
  • Kia Soul EV
  • Mahindra e20
  • Mercedes-Benz B-Class Electric Drive
  • Nissan e-NV200 (5-seater and 7-seater)
  • Nissan LEAF
  • Peugeot iON
  • Renault Fluence
  • Renault ZOE
  • Smart fortwo electric drive
  • Tesla Model S
  • Toyota Mirai
  • Volkswagen e-up!
  • Volkswagen e-Golf

Category 2 vehicles

  • Audi A3 e-tron (MY16 only)
  • BMW 225xe
  • BMW 330e
  • Mercedes-Benz C350 e (with 17 inch rear wheels)
  • Mitsubishi Outlander (except GX3h 4Work)
  • Toyota Prius Plug-in
  • Vauxhall Ampera
  • Volkswagen Golf GTE
  • Volkswagen Passat GTE
  • Volvo V60 D5 Twin Engine
  • Volvo V60 D6 Twin Engine
  • Volvo XC90 T8 Twin Engine Momentum

Eligible vans

  • BD Otomotiv eTraffic
  • BD Otomotiv eDucato
  • Citroen Berlingo
  • Daimler Mercedes-Benz Vito E-Cell
  • Mitsubishi Outlander GX3h 4Work
  • Nissan e-NV200 (cargo van)
  • Peugeot ePartner
  • Renault Kangoo ZE
  • Smith Electric Smith Edison
  • H3 Eligible vans

Thanks to the gov.uk website for publishing the information we used when researching this post.