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Everything You Should Know About Electric Car Finance

Electric vehicles are fast becoming the choice among car buyers in the UK. You might even have an EV in mind already or a shortlist of models you’d like to test drive. The next thing you’re possibly considering is finding electric car finance deals to make your purchase more affordable. Not sure how car finance for electric vehicles works, or just want more informations about EVs? Here's all you need to know. Maybe checkout our video on the subject too...👇


Car Finance for Electric Cars

Hire Purchase 

Hire purchase car finance is the most popular choice when it comes to electric car finance in the UK. With this deal, you can buy the electric car you want without having to spend all your cash in one go. 

Instead, the cost of the vehicle is spread over a certain period such as 36 months (3 years). This makes buying an EV more practical since you only have to think about the fixed monthly repayment. 

To make your monthly payment more affordable, try to pay a deposit if you can so you’ll borrow less money from the lender. Another tip is to choose a shorter loan term. Your monthly payments will be higher but you’ll pay less interest, finish the loan quickly, and then the car will be yours to own once you’ve completed all payments. 

Personal Contract Purchase

Let’s say you’re not yet sure about owning a car but you want to enjoy the benefits of having your own ride. You can choose a personal contract purchase deal. This one has lower monthly payments compared to a hire purchase deal and can offer the cheapest electric car finance in the UK if you find the right offer. 

However, when you reach the end of your contract and you’ve decided that you want to own the car, you would have to pay a final "balloon" payment. This is completely optional because you also have the choice to return the car and you don’t have to pay for anything anymore. Just make sure that the car didn’t exceed the mileage limits and it’s still in good condition, otherwise you could face additional charges. 

Why Get Electric Car Finance?

EVs are not exactly the cheapest type of car in the market today, but don’t let that discourage you from going green. 🍃 With the government incentives and tax exemptions, buying an electric car is a wise move, especially since conventional vehicles will be banned in the future. 

If you buy an electric car on finance, it will make the purchase much easier on your bank account. You don’t have to put all or most of your savings into this single purchase. Whether you choose to get a hire purchase deal or a personal contract purchase agreement, be it a three-year contract or seven years, there’s something that will fit your financial situation. 

Top Reasons Car Buyers Want EVs

Cheaper to Run and Maintain

Regardless of where you plug in your EV to charge the battery, it's much less expensive compared to topping up a petrol or diesel car. You can also save more money on upkeep by using an electric vehicle. Electric cars have an electric motor instead of a combustion engine. 

EVs don't need to be maintained on a regular basis like traditional cars. Such low maintenance requirements can save EV owners plenty of money throughout the life of the vehicle. Even if electric cars are a bit pricier than conventional vehicles, you get to eliminate typical car maintenance expenses and spend less money in the long run. Plus, you can buy  new electric car on finance if you want to spread the cost so it's not too much in one go. 

Quick and Smooth Acceleration

If you’re looking for a car that accelerates quickly and smoothly, then you can get all that and more from an EV. Electric motors quickly respond and provide full torque almost instantly. They can provide a smooth and enjoyable ride because they have a lower centre of gravity than conventional cars. 

Not only are electric cars great to drive but they produce little noise. And since EVs are quiet, you might be somewhat confused at first whether the car’s ready to be driven. But don't worry, they're supposed to sound like that. Plus, you can always test drive an EV at a dealer near you to get a first-hand experience of how easy and fun they are to drive. 

Better for the Environment

Full-electric vehicles have no tailpipe emissions, making them the most eco-friendly choice among car buyers. The effects of climate change and pollution are being felt by many of us, especially those living in busy cities where air quality is poor. You can do your part in improving the environment by going green and switching to an environmentally friendly car. 🍃

When more car buyers choose electric vehicles over conventional combustion-engine cars, it means less air and noise pollution in many cities in the UK. With an electric car, you still get to enjoy the freedom and convenience of having your own vehicle but without harmful exhaust emissions being released into the atmosphere. 

Ready to Get Your EV?

With Carmoola, you can drive your dream electric car. Be sure to download the app and check to see if you  qualify for financing. It won’t take five minutes. You just have to enter your name and address and verify your identity using your driver’s licence. You’ll know the result almost instantly. To find out more about how Carmoola works, click here! 😀

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