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Electric and Hybrid Car Finance

The electric and hybrid car revolution is well underway as an increasing number of drivers switch from fuel options to environmentally-friendly vehicles. And with the increase in gas, more drivers are considering making the switch to electric. When it comes to buying an electric or hybrid car, you might decide to make your purchase using car finance. But how does it all work, and is car finance different for electric and hybrid cars? We find out below with all the details you need to know.

Everything you should know about electric car finance

Electric vehicles are becoming the de facto choice for many drivers, who are using car finance to make the purchase more affordable. Electric cars are cheaper to run and maintain because there are no fuel costs involved. They also don't have typical combustion engines, so there's no need for oil changes, spark plugs or timing belts. And, of course, they're better for the environment because they don't have tailpipe emissions. It's easy to see why someone might opt for an electric car over a fuel model. Fortunately, when it comes to financing an EV, you have the same options as a traditional car. Hire purchase (HP), contract hire purchase (PCP), a direct loan, and leasing options are all available. That means you can spread the cost of an electric car over months and years to make it more affordable.

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What you need to know about hybrid car finance

A hybrid car offers the best of both worlds, giving you electric options while having a fuel component. In turn, you can drive a more environmentally-friendly vehicle that allows you to save on fuel costs. Getting finance for a hybrid car is much like any other vehicle. You have the same options, whether it's HP, PCP, a loan or a lease. Before deciding which one is best for you, it's worth reviewing each offering. With HP, you pay an upfront deposit and then make monthly payments until the finance is cleared. PCP is similar, although the deposit and repayments are typically lower. This is because there's a final balloon payment that you can pay at the end of the contract. Alternatively, you can hand back the keys. A loan is more straightforward as you borrow the amount you need, buy the car outright, and then pay the monthly repayment directly to the lender. Lastly, leasing and subscription options are also available if you don't want to own the car.

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