Government-backed EV loans could be on the cards as the UK scrambles to boost private uptake of electric cars, in the face of evident consumer reluctance to embrace the new technology.
Reports suggest that ministers are in talks with car finance firms, with a view to subsidising the cost of finance by guaranteeing loans to drivers. The hope is that by acting as guarantor, lower interest rates or even zero interest rate loans can be offered to tempt prospective buyers into the EV market.
News of the talks suggests a link to the unexpected intervention last week by the Treasury, under Chancellor Rachel Reeves, into the ‘undisclosed commission’ saga, where finance firms face billions of pounds’ worth of compensation payouts to consumers thanks to a Supreme Court ruling that’s currently subject to an appeal.
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