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Half of car dealers still back Electric Car Grant despite concerns over ‘complex’ scheme

  • Almost half of dealers (48%) say Electric Car Grant will provide ‘useful boost’ for the sector
  • Research from Startline Motor Finance shows concerns over the complex nature of banding
  • Dealers also raise worries that grant does not cover enough models

Time 11:28 am, September 16, 2025

Almost half of car dealers are backing the government’s new Electric Car Grant to provide a boost for EV sales, despite the fact only a handful of cars are set to qualify for the full discount.

That is according to new research from Startline Motor Finance, which has found that 48% of automotive retailers believe the initiative will offer a ‘useful boost’ for the electric car market.

The firm surveyed 60 dealerships and 301 consumers as part of its latest Used Car Tracker, with 43% of dealers saying that ‘anything that makes electric cars more accessible is a good idea’.

However 32% of respondents criticised the scheme for being too complicated, especially when it comes to how cars are placed into different bands.

A recent Car Dealer study found that just six cars are likely to qualify for the full £3,750 grant, with tough eco targets meaning that more than half of car makers in UK will not quality for any discounts at all.

Startline’s data shows that 20% of dealers think the scheme does not cover enough models, while 28% raised concerns about the impact the initiative could have on electric car residual values.

Reacting to the findings, Paul Burgess, CEO at Startline Motor Finance, said: ‘There’s been quite a lot of noise in the motor industry about the electric car scheme, with some complaints that it doesn’t cover more vehicles and that only a few models receive the maximum grant.

‘Our research shows that around half of dealers generally see the initiative as a positive, probably in the sense that anything aiding electrification is a good thing, especially when it comes to promoting affordability.

‘However, there is some quite widespread scepticism, and it is especially notable that around a quarter of our respondents think similar funding is instead needed for electric used cars, suggesting they believe prices need to fall more in that part of the market.’

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.



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