Can you finance an electric car?
Electric car finance is a great way to spread the cost of getting an EV into affordable monthly payments. Electric cars can be financed on both Hire Purchase and Personal Contract Purchase deals, depending on which you’re more suited to. Hire Purchase can be a little more expensive when it comes to monthly payments as you are spreading the cost of the value of the car, but it means once all payments have been made at the end of the agreement, the car is yours to own. PCP car finance can benefit from low monthly payments on electric cars as most of the cost is differed until the final optional balloon payment.
Why should you consider getting an electric car?
There are many reasons why electric cars are becoming more popular. One of the main reasons is the petrol and diesel ban which is coming to the UK in 2030. This ban means there will be no new petrol and diesel cars sold in the UK from 2030. If you’re looking to get a new car, you will only be able to buy a hybrid car or an electric car. This initiative has been put in place to eradicate the UK’s contribution to global warming and climate change. Some of the top benefits of getting an electric car can include the following:
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Better for the environment. Electric cars don’t use a combustion engine like a petrol or diesel car does. Petrol and diesel cars release harmful pollutants into the air which speed up the rate of climate change and damages air quality. Electric cars on the other hand use an electric motor which does not produce emissions.
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Low running costs. The electric motor powers the car and the electric batteries within can be recharged at home. EVs take their power from the national grid and can be recharged at home or at a designated charging point. Its cost much less to recharge an electric car than it does to refuel with petrol or diesel so you can save money by switching to an electric car.
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Exempt from congestion charges. Many Ultra Low Emission Zones and Clean Air Zones have been introduced in the UK to help tackle air pollution. These zones charge drivers to drive through them if they are in a vehicle that produces emissions. Electric cars are exempt from any congestion charges as they are eco-friendly and don’t produce harmful pollutants.
What to consider before getting an electric car on finance?
Whilst there are so many advantages to getting an electric car on finance, there are a few factors that you should consider first.
Car finance approval is never guaranteed
More drivers than ever are choosing to buy new and used cars on finance but it’s worth remembering that car finance is never guaranteed. Car finance can be offered by finance brokers through dealerships or brokers and each lender will have their own criteria that applicants need to meet before they can receive a finance approval. It can be worth checking your car finance eligibility first before you start applying.
Charging availability
The cheapest way to recharge your electric car is at home and overnight. In order to do this, you will need to pay for an at home charger installed and it should be located off the street or within a garage. For drivers who live in flats or in a premises which could not host a charger, this may not be possible. Drivers would then have to rely on public charging points which can cost more as they use a higher voltage to recharge the battery quicker.
Bad credit may hold you back
It’s a common car finance myth that getting a car on finance with poor credit is impossible, however this doesn’t have to be the case. It can be beneficial to work on your credit score before applying for car finance as it can mean you see easier acceptances and get a better rate. You can get approved with bad credit, but it can see you get offered a higher interest rate as the risk to the lender is greater.
