Best UK Electric Car Finance Deals with Carmoola

More and more drivers are switching from fuel cars to electric vehicles. They now account for more than 5% of all cars sold in the UK each year.

If you're thinking of buying an EV, you're probably wondering how to pay for it.

Don't worry because we've got you covered with this guide featuring everything you need to know about the best electric car finance deals in the UK.

The Advantages of Electric Car Financing

Paying with cash is the more straightforward way to buy a car, but it means taking a big chunk of money from your savings. Financing a car is a more budget-friendly option for many car buyers.

Electric car financing offers several advantages, making it an attractive option for many buyers. Here are the top five benefits:

Lower Operating Costs

Electric cars are more energy-efficient and have fewer moving parts than traditional petrol vehicles, resulting in significantly lower operating costs.

Lower fuel expenses and reduced maintenance requirements can lead to substantial long-term savings.

Environmental Benefits

Financing an electric car aligns with eco-conscious consumers' values as these vehicles produce zero tailpipe emissions.

Choosing electric contributes to reducing air pollution and greenhouse gas emissions, thereby helping combat climate change.

Government Incentives

The UK government offers incentives to promote electric vehicle adoption, such as tax credits, rebates, and reduced registration fees. These incentives can significantly lower the cost of purchasing an electric car.

Reduced Reliance on Fossil Fuels

Electric cars rely on electricity, which can be generated from various sources, including renewable energy.

By driving an electric car, you can reduce your dependence on fossil fuels and contribute to a more sustainable energy future.

Advanced Technology

Electric cars feature cutting-edge technology, including regenerative braking, smart infotainment systems, and autonomous driving capabilities.

Financing an EV allows you to access and enjoy these technological advancements without a substantial upfront payment.

Top Electric Car Models with Low Deposit

If you're looking for a good electric car with an affordable price, here are our top five suggestions!

Renault Zoe

Renault Zoe-1

The Renault Zoe has been a popular and affordable choice for electric car buyers. It offers a practical and compact design with a reasonable range and competitive pricing.

The Zoe has been known for offering a practical and usable range for everyday driving. It is a great option for those who want an electric car for their daily commute and general transportation needs.

Renault has periodically updated the Zoe's battery technology to improve its range, and newer models have seen significant improvements in this regard.

The specific range can vary depending on the model year and battery capacity, so it's essential to check the latest specifications when considering a Renault Zoe.

Nissan Leaf

Nissan Leaf

The Nissan Leaf is one of the best-selling electric cars globally and comes in various trim levels, including more affordable options. It offers a decent range and is known for its reliability.

One of the best features of the Nissan Leaf is its ProPILOT Assist system. This advanced driver-assistance technology includes features like adaptive cruise control and lane-keeping assistance.

This system helps the driver maintain a safe distance from the vehicle in front and stay centred in the lane. ProPILOT Assist can reduce the stress of highway driving and make long journeys more comfortable.

This feature of the Leaf is part of Nissan's commitment to promoting electric vehicles with advanced safety and convenience features.

Volkswagen ID.3

Volkswagen ID.3-1

Volkswagen's ID.3 is a compact electric car that aims to be affordable while offering a modern design and a good range. Pricing may vary depending on the trim level and options.

One key feature you'll love about the Volkswagen ID.3 is its modular electric drive matrix (MEB) platform.

The ID.3 is built on this dedicated electric platform, which allows for efficient use of space within the vehicle and maximises the benefits of electric propulsion.

The MEB platform is designed to accommodate various battery sizes and electric motor configurations, providing flexibility in terms of range and power options.

This platform also allows for a spacious interior and a more compact exterior design, making the ID.3 a versatile and environmentally friendly electric car.

Hyundai Kona Electric

Hyundai Kona Electric

The Hyundai Kona Electric is an SUV with a respectable range and a relatively affordable price compared to some other electric SUVs.

The best thing about the Hyundai Kona Electric is its exceptional balance between affordability, impressive electric range, and practicality.

It offers a competitive price point for an electric SUV while providing a generous all-electric range, which can ease concerns about recharging on longer journeys.

With its versatile and spacious interior, as well as a well-designed infotainment system, the Kona Electric delivers a compelling electric vehicle option for buyers.

With this electric SUV, you can enjoy a great combination of affordability with real-world usability, making it an attractive choice for drivers looking to transition to electric mobility.



MG has introduced the ZS EV, an affordable electric SUV with a competitive price tag. It offers a decent range and features at a decent price.

The standout feature of the MG ZS EV is its exceptional value proposition. It offers a fully electric SUV at an impressively affordable price point, making electric mobility accessible to a broader range of consumers.

The MG ZS EV combines affordability with modern, eco-friendly technology. It's definitely a great buy for budget-conscious drivers looking to transition to electric vehicles without compromising on practicality or style.

Easy Monthly Payments: Electric Car PCP Deals

PCP financing is a popular and widely available financing option for electric vehicles as well as traditional internal combustion engine vehicles.

PCP allows you to make monthly payments over a specified term.  At the end of the agreement, you have the option to either return the car, pay a final "balloon" payment to own the car outright or use any equity in the vehicle as a deposit for a new car.

PCP deals for electric cars often come with competitive terms, and you may also be eligible for government incentives or grants designed to promote electric vehicle adoption in the UK.

Be sure to shop around, compare offers, and consider your budget and preferences when selecting a PCP deal for an electric car.

Can I Get an EV Using Car Finance?

You can absolutely get an electric car using finance, just like you can get most vehicle types through financing. There are several options available for financing the purchase of an EV, including:

Car Loans 🚘

You can take out a traditional car loan from a bank, credit union, or specialist online lender to finance the purchase of an EV.

This usually involves paying the amount of the car upfront to the owner and repaying the loan amount to the lender over an agreed period. 

Car Leasing 🚘

You can also lease an EV, which means making monthly payments to use the vehicle for a set period of time, usually two to five years.

At the end of the lease term, you can choose to return the car or purchase it outright.

Dealer Financing

Many car dealerships offer their own financing deals. Options like PCP and HP are often available for electric cars, with terms varying spending on the dealership. 

Government Incentives for EVs

There are available incentives from the Government, such as rebates or tax credits, to encourage the purchase of electric vehicles.

These incentives can lower the overall cost of an EV and make it more affordable to finance.

But always double-check the grants and incentive schemes available at the time of purchase on the .gov website, as these are changing all the time!

Factors to Consider to Get the Best EV Finance 

There are several factors you should consider to get the best electric car finance deal for your needs. These include everything from the interest rate to the loan amount and more:

Interest Rate

The interest rate on your car loan determines the overall cost of borrowing. Look for the lowest interest rate you can find, but also consider other terms and fees as well.

Loan Term

The loan term is the length of time you have to pay off your loan. Shorter loans will have lower interest rates but higher monthly payments.

Longer loan terms will have higher interest rates but lower monthly payments. Choose a loan term that you are comfortable with, and that fits your budget.


Read the fine print to understand any fees associated with the loan, such as origination fees, early repayment penalties and late payment fees.

Early Payment Penalties

Some loans may have an early payment penalty, which means you'll be charged a fee if you pay off the loan early.

If you decide to sell the car or refinance the loan, this may become an issue.

Credit Score

Your credit score plays a significant role in setting the terms of your loan, including the interest rate and amount.

If you have a good credit score, you'll likely qualify for better loan terms, including lower interest rates.


A deposit can help lower your monthly payments and may even be required by some lenders.

Consider how much you can afford to put down and whether saving up for a larger upfront deposit makes sense.


Choose a financing option that you can afford and consider the total cost of the loan, including the interest and fees, as well as your budget and financial goals.

Finding the Best Car Finance Deals

So you know what to look for in an electric car finance deal, but how do you find the best options on the market?

Here are some helpful tips to give you the best chance of driving away in your EV after securing a good finance deal. 

Go Shopping

Compare rates, terms and fees from multiple banks, dealerships and online lenders to find the one that works best for you.

You can use an online car comparison website to view the best loan deals side by side. 

Check Your Credit Report

Your credit score will play a role in determining the terms of your loan, so it's important to check your score before you start shopping for a loan.

This way, you can see if any amendments are needed to improve your credit rating

Consider a Shorter Loan Term

While shorter loan terms may have higher monthly payments, they can save you money in the long run by reducing the total amount of interest you pay.

Pay a Bigger Deposit

A bigger deposit means you'll need to borrow less and lower monthly payments. You will also pay less interest overall since your loan amount is smaller.

Electric Car Finance Deals With Carmoola

Finance your electric car with Carmoola by applying via our app. All you need is your phone and a few minutes. You'll know the result of your car finance application almost instantly.

Curious to know how Carmoola works? We're here to answer all your questions! Be sure to reach out! 👍🚘

FAQs on Electric Car Finance Deals

Can I Get an EV Using Car Finance?

Yes, you can get an electric vehicle (EV) in the UK using car finance. Car financing, including Personal Contract Purchase (PCP), Hire Purchase (HP), and lease deals, is widely available for electric cars in the UK.

Many automakers, dealerships, and lenders offer financing plans tailored to electric vehicles, making it accessible and affordable to purchase or lease an EV.

Additionally, government incentives and grants may further reduce the cost of financing an EV, making it an attractive choice for eco-conscious consumers looking to transition to electric mobility.

How Can I Get a Low Deposit Contribution for an Electric Car?

Getting a low deposit contribution for an electric car can help reduce your initial expenses. Here are some ways to achieve this:

1. Research Promotions: Keep an eye on manufacturers' and dealerships' promotions, as they often offer low or zero-deposit deals for specific electric car models.

2. Government Grants: Check for available government grants and incentives for electric vehicle purchases, as these can effectively reduce your required deposit.

3. Part-Exchange: Consider trading in your current vehicle as part of the deal. The value of your trade-in can be applied toward the deposit, potentially reducing it significantly.

4. Negotiation: Be prepared to negotiate with the seller or dealership. Sometimes, they may be willing to offer a lower deposit contribution to close the sale.

5. Consider Different Finance Options: Explore various financing options like Personal Contract Purchase (PCP) or Hire Purchase (HP) to find deals with lower upfront deposit requirements.

6. Leverage Manufacturer Offers: Manufacturers occasionally provide direct incentives, such as cashback or deposit contributions when you purchase their electric cars. Look out for such offers.

7. Shop Around: Compare offers from different dealerships and lenders to find the best deal that suits your budget and deposit requirements.

What are the Latest Electric Car PCP Deals for 2023?

To find the latest electric car PCP deals in the UK for 2023, consider these steps:

1. Visit Manufacturer Websites

Automakers often have dedicated pages on their websites with information about current promotions and financing offers for their electric vehicle models.

2. Check Dealership Websites

Local dealerships may advertise their latest PCP deals and incentives for electric cars on their websites. You can also contact them directly for information.

3. Use Comparison Websites

Websites specialising in car deals and financing offers can provide a comprehensive overview of available PCP deals for electric cars in the UK.

4. Consult Financial Institutions

Banks and credit unions may offer financing options and deals for electric vehicles, so it's worth checking with them as well.

5. Consider Government Incentives

Be aware of any government incentives or grants for electric vehicle purchases in the UK, as these can significantly affect the overall cost.

Are Electric Cars More Expensive to Finance than Traditional Cars?

Electric cars can be more expensive to finance than traditional cars upfront due to the higher purchase price and potentially higher insurance costs.

However, they often come with lower operating costs, including reduced fuel and maintenance expenses, which can help offset the initial investment.

Additionally, various government incentives and tax benefits are frequently available to incentivise electric vehicle adoption, potentially making financing an electric car more cost-effective in the long run.