Electric Car Finance: what’s right for you?

With the ban on the sale of new diesel, petrol and hybrid cars coming into force in the UK in 2030, electric car finance is about to explode. And while at time of writing, eight years feels like a pretty long time, the truth is, it’ll be here before you know it.

So, instead of waiting, why not get ahead of the game by switching to an electric vehicle (EV) now?

The benefits of owning an electric vehicle

Before delivering into electric car finance, let’s look at the benefits of owning one. Because if you thought EV’s are pretty much only about cutting carbon emissions, think again. 

There is a wealth of benefits to owning one, with more on the way to entice more drivers to switch before the 2030 deadline.
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Benefits:

1. No carbon emissions

Are electric cars better for the environment?

Absolutely!

As they run on electricity and not fuel, electric vehicles don’t emit emissions into the environment, making them good for the planet (and for smog in big cities!).

2. Low running costs

How much does it cost to charge an electric car? A study by EDF energy found that per 100 miles, a petrol car costs £11.05, compared to £1.30 for an electric vehicle.

3. No tax

There's no tax payable on an EV either, which is a big incentive in itself!

4. Greater driving experience

With responsive acceleration and braking. And a lower centre of gravity, driving an EV is smoother and more comfortable.

5. Less noise

EV’s are fitted with an Acoustic Vehicle Alert System (AVAS) to notify the driver of excess noise.

6. Free parking

There are dedicated free and priority parking bays in car parks just for electric cars. And with fewer EV’s on the road right now, it might save you the frustration of driving around packed car parks unable to find a spot.

7. EV grants available

The government currently offers grants to help you purchase an EV and install charging points at your home and workplace to make the switch easier.

8. No congestion charges

With the introduction of Green Air Zones, owners of electric vehicles don’t have to pay a congestion charge. Ideal if you’re living in London right now.

How long does it take to charge an electric car?

A car with a 60kWh battery and a 7kW charging point takes less than 8 hours to charge from empty to full. However, most drivers top-up the charge as and when. And if you use a 50kW rapid charger, you can add up to 100-miles in battery life in a 35-minute charge.

‍Are electric cars cheaper to insure?

Although there are many benefits, insurance is possibly one of the only drawbacks. In a survey carried out by MoneyGeek.com, it was found that Electric cars can cost up to 15% more than petrol and diesel vehicles.

Which electric car finance option is right for you?

Should you lease an electric vehicle (PCP)? Or get an EV on finance (HP)?

The difference between PCP and HP is enormous, so you need to consider which is the right one for your circumstances:

• Finance (HP)

• You pay a monthly fee to own the vehicle
• Once paid in full, you own the vehicle
• You own the electric vehicle after final payment
• There’s no additional payment due at the end of the agreement

However, with the electric car finance option, you’re likely to be buying a slightly older car than the one you’d buy via PCP.

• Leasing (PCP)

• You have the option of leasing a brand new vehicle
• You agree on a mileage allowance at the start of the agreement
• You pay for the vehicle depreciation in your monthly payments
• You must return the car in top condition, and you may be charged for any scratches or dents
  

Also, unless a prior agreement is made, you won’t necessarily have the option of keeping the car at the end of your payment period. This isn’t always guaranteed and will vary from vendor to vendor.

Now your finances are sorted, which electric car should you get?

Nor sure electric car finance deal is right for you? 

No worries, we’ve covered the three best HP and PCP EV’s of 2022 for budgets of £300-per month upwards.

Small to medium budget EV’s on finance (HP)

Volkswagen ID.3

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The ID.3 is the first electric car made by VW and is well worth the money. You don’t need to start the engine. All you do is sit in the driver’s seat, and it’s ready to go. And if you’re looking for something exceptional, you’ll find it has a sat-nav that displays real-time instructions on the windscreen.

Pretty cool, right?

You’ll get between 216-340 miles per charge depending on the model you choose (and how deep your pockets are).

Renault Zoe

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It’s not big or flashy, but the Renault Zoe is economical. With a large battery, you’ll get up to 245-miles between charges. And although it’s not as fast as some other electric vehicles, it’s ideal if your main driving is around the town.

Nissan Leaf

The Nissan Leaf is one of the most reliable electric cars available. And it has an e-Pedal system that, when you lift the throttle, slows down like you’re pressing the brake. It sounds odd, but it’s something you’ll love when you get used to it.

It does between 168-239 miles, depending on the model. But if you want to make sure of a first electric car that’s the absolute bollocks to drive, pick the Nissan Leaf.

Small to medium budget EV’s on lease (PCP)

Hyundai Kona Electric

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The Hyundai Kona Electric is a sturdy, sleek SUV (it’s pretty much the electric version of the petrol Kona SUV). And as Hyundai are one of the leading electric vehicle manufacturers (along with Tesla), you can’t go wrong.

Depending on the model, you’ll get 180-300-miles per charge.

Vauxhall Corsa-e

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The standard petrol Corsa is known for its reliability. And although It's not as flashy, what it lacks in ‘show’, it more than makes up for in drivability.

It's a pleasure to drive and one of the best small to mid-budget electric vehicles on the market. And with up to 200-miles per charge, it’s not too shabby on that front either.

MG ZS EV

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If you’re looking for a budget-friendly electric car, go with the MG ZS EV. It’s a medium-sized SUV with tons of room inside and a massive boot.

It’s not the most fun to drive, but it’s affordable for those on a small budget. If you’ve got £300+ to spend, you’d be better off choosing the Hyundai or Vauxhall Corsa.

*Other vehicles are available, but for more information on getting electric car finance on the cars above, check out Parkers.co.uk. However, if your budget is more substantial, here are two that’ll set tongues wagging:

Big budget EV’s

Tesla 3

Image: Tesla

The Tesla 3 is the manufacturer's most affordable electric car. It’s crammed with tech and is an absolute dream to drive. Honestly, it’s the BEST electric vehicle on the market, and if only the best will do, then the Tesla 3 is an absolute must.

And with up to 350-miles between charges, well, it’s a no brainer, isn’t it?

Porsche Taycan

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It’s a Porsche, beautiful, and breathtaking to drive. It’s not cheap, but the spacious interior is worth the investment alone. It can travel up to 300-miles between charges, so you’re able to enjoy the admiring glances for long stretches.

In conclusion

We're all going to switch to electric vehicles at some point. So, if you're looking for a new car soon, take advantage of the government incentives in electric car finance and get a car of the future today.

Are you a car dealership looking for quality leads?

Owning a car dealership means a lot of change in the lead up to the 2030 deadline. And part of that change means enticing customers to invest in electric vehicles.

And to do that, you need to market yourself effectively.

At Social Tap, we specialise in Facebook ad campaigns for car dealerships and financial services providers in the motor industry. Not only do we monitor, optimise, tweak and split test every ad, but we also make sure you get the best leads possible for your investment.

So, if your current ads are performing like a clapped-out banger, then it's time to upgrade them with Social Tap and watch them perform like a Porsche Taycan.

Let’s start the engine on getting you high-quality finance leads - get in touch.