---
title: How Electric Car Grants Are Shifting Demand, Pricing, and Part-Ex Values
description: Discover how the UK's new Electric Car Grant impacts EV demand, pricing, and part-exchange values, with expert insights and practical advice.
---

[The Latest Car Finance News & Advice ](https://www.marshfinance.com/blog)

# [How Electric Car Grants Are Shifting Demand, Pricing, and Part-Ex Values](https://www.marshfinance.com/blog/electric-car-grants-shifting-demand-pricing-and-part-ex-values)

 Written by [Amy Roberts](https://www.marshfinance.com/blog/author/amy-roberts) | Oct 9, 2025 2:28:25 PM

## **What The Grant Actually Is (No Fluff)**

- Two grant levels: **£3,750** (Band 1) and **£1,500** (Band 2) on **approved new EVs** that meet technical and sustainability criteria. The official eligibility list is updated by the government.
- The government confirmed more models were added in late August (including Ford Puma Gen-E and E-Tourneo Courier), bringing the eligible pool to 28 models at that point and explicitly noting that the **full £3,750** now applies to certain cars.
- Price caps are part of the design. Current trade coverage cites a cap in the high-£30ks for many entries (Auto Trader references **£37,000**), while other outlets note variant rules that effectively cap **up to £42,000**; in practice, entry trims tend to qualify. Always check the live list.

## **What Changed In September—And Why Dealers Noticed**

- Best September for EV volumes on record**: **72,7xx BEVs; EV market share 23% in a month where total registrations rose 14% to 312,9xx. SMMT and multiple outlets attribute the surge to manufacturer discounting + ECG.
- Enquiries jumped: Since July’s announcement, new-EV enquiries on Auto Trader are up 44–50%, with grant-eligible models more than doubling versus pre-grant weeks.
- The price gap narrowed: the EV premium vs petrol fell to **19%** (down from **33%** a year ago) as brands repriced and the ECG landed, meaning more shoppers now cross-shop ICE and EV rather than defaulting to petrol.

Inside the September Auto Trader data: **EVs were also the fastest-selling fuel type in used (27 days)**; overall, used stock averaged **28 days**. That’s your clue, this isn’t just a new-car story.

## **“But Marsh Doesn’t Fund EVs Right Now.” True, But This Still Hits Your P&L**

We don’t currently fund EVs. Here’s why the ECG still matters to every dealer and broker:

1. Part-ex maths changes
   
   More new-EV deals = more ICE part-exes coming back, often at family-SUV and hatch price points. Expect extra ICE supply and sharper pricing in certain age/mileage bands.
2. Used-car pricing stays firm
   
   September’s used prices rose +0.6% YoY, the second straight monthly gain; older cohorts (3yrs+) showed MoM resilience and YoY strength, while used EV prices were stable with stock turning quickly (27 days). Translation: you can hold the price if the retail story is clear.
3. New-car discounting bleeds into used
   
   OEMs leaned into discounting (avg 10.1% of list; EV incentives 11.8%), which reshapes buyer anchors and pushes shoppers to compare used versus discounted new. Make your used-car value *obvious* on the VDP.

## **What The Next Two Quarters Probably Look Like (Directionally, Not Dogma)**

- Grant momentum carries into Q4: EV share lifted to **23%** in September; enquiries still running hot after model list clarifications. Expect ongoing churn in grant-eligible models and short-term EV order uplift.
- Used market stays stable: September marked eight straight months of YoY used growth, with independents benefiting from older-stock demand. Expect healthy ICE turnover as EV-driven part-ex flows arrive.
- Residuals: watch the edges: Mainstream, family-friendly EVs likely hold best; niche or high-MSRP trims could be more volatile. SMMT and press note we’re still below 2019 volumes overall, so pacing matters.

## **Practical Moves For Retailers (Even If You’re ICE-Only On Finance)**

1) Price and stock by job-to-be-done, not fuel type

Create three buyer funnels on site and in-store: Value commuting, Family space, Comfort & tech. Surface 4–6 best-fit ICE/hybrid picks in each funnel so you’re competing with “new EV + grant” on *use case*, not headline fuel.

2) Refresh part-ex valuations weekly

Grant-fuelled EV orders = more ICE trade-ins. Tighten your appraisal grid on **C-/D-segment petrol & diesel** (ages 3–7). The Auto Trader file shows **3–5-year stock selling at 27 days** and older cohorts holding value—don’t sleep on that.

3) Control the used VDP story

Add a simple **“Why this costs what it costs”** panel:

- recent maintenance (belts, brakes, tyres)
- two keys / clean MOT trail
- included pack (service + 12-month MOT + basic warranty)

This protects the price against discounted new.

4) Put monthly and TCO up-front (for ICE too)

New EV listings are suddenly heavy on **monthly** and **running-cost** comps. Mirror that on ICE/hybrid VDPs (fuel economy at real-world speeds, insurance band cues). If buyers are comparing, **make the comparison easy**.

## **Broker & Lender Lens**

- **PCP/HP demand on ICE stays strong** as monthly anchors for grant EVs firm up buyer expectations.
- **Approval mix may shift** if more near-prime customers chase discounted EV PCPs with captives; that can raise ICE enquiry quality for independents.
- **Risk hygiene:** keep an eye on ICE residuals in segments where grant-eligible EVs are direct substitutes. Adjust GFVs and terms accordingly.

## **What The Data Says (So You Can Brief Your Board)**

- EV sales record in September: BEV share **23%**, total market **+14%** YoY.
- Grant effect on demand: EV enquiries **+44–50%** since July; **grant-eligible models up 2x**.
- Used resilience: prices **+0.6% YoY**; **used EVs fastest to sell (27 days)**; overall used **28 days**.
- Discounting: avg **10.1%** on new; **EV incentives 11.8%** concurrent with ECG rollout.

## **Where Marsh Finance Fits**

We **don’t currently fund EVs**, but we do help partners **monetise the ripple effects**:

- **Soft-search on every ICE/hybrid VDP** (eligibility without the credit-file fear)
- **Fast HP & PCP decisions** for used ICE/hybrid, including near-prime

## **Sources**

- **Auto Trader Monthly Market Intelligence — September 2025**: EV enquiry uplift; used days-to-sell; used price stability; discounting context.
- **SMMT & press round-ups**: record September EV volumes; total market up 14%. [SMMT+2Reuters+2](https://www.smmt.co.uk/september-new-car-market-delivers-record-number-of-evs/?utm_source=chatgpt.com)
- **Gov.uk**: ECG tiers (£3,750 / £1,500), eligibility management, model additions. [GOV.UK+2GOV.UK+2](https://www.gov.uk/plug-in-vehicle-grants/cars?utm_source=chatgpt.com)
- **Trade coverage on caps/eligibility** (to sense-check price thresholds and ongoing updates). [AutoTrader+1](https://www.autotrader.co.uk/content/news/here-are-all-the-cars-eligible-for-the-electric-car-grant?utm_source=chatgpt.com)

## **The ECG Is A Rising Tide**

Even if you’re ICE-heavy, you’ll feel the lift in enquiry quality, part-ex flow, and pricing power if you frame the value clearly and keep the finance journey effortless.

[View full post](https://www.marshfinance.com/blog/electric-car-grants-shifting-demand-pricing-and-part-ex-values)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Amy Roberts"
  },
  "dateModified" : "2025-10-09T14:28:25.269Z",
  "datePublished" : "2025-10-09T14:28:25Z",
  "headline" : "How Electric Car Grants Are Shifting Demand, Pricing, and Part-Ex Values",
  "image" : {
    "@type" : "ImageObject",
    "height" : 250,
    "url" : "https://26245497.fs1.hubspotusercontent-eu1.net/hubfs/26245497/Electric%20Car%20Charging%20.webp",
    "width" : 500
  },
  "mainEntityOfPage" : "https://www.marshfinance.com/blog/electric-car-grants-shifting-demand-pricing-and-part-ex-values",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60,
      "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png",
      "width" : 60
    },
    "name" : "The Latest Car Finance News & Advice"
  }
}
```