Government Grants Running Out Fast

© iStockphoto / Mark GoddardMore than 6,000 electric and plug-in hybrid cars were sold in the UK in March 2015, which is 400% up on the 1,200 cars sold a year earlier.

Why does this matter? Because the governments £5,000 subsidy on new electric and plug-in hybrid cars is limited to the first 50,000 vehicles sold.

With the industry on course to sell more than 30,000 electric cars this year alone, the grants may run out before the end of the year.

The subsidy scheme is due to be reviewed in May, and the government may of course decide to extend it.

Even if the subsidies run out, there are still lots of reasons to buy an electric car, including the low running costs and exemption from road tax and the London congestion charge.

Of course this might not be bad news for existing electric car owners – as a £5,000 increase in the new price of electric cars might help to slow the depreciation of secondhand ones.

More on this story in this BBC Business article: