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Bradford, West Yorkshire
Bradford, West Yorkshire

With the Government implementing the new rules of prohibiting sales of petrol, diesel and certain Hybrid Vehicles in the UK from 2030, you may be thinking now is the time to purchase an Electric Vehicle. Buying an Electric Vehicle now is the best time, as the Government has a plug-in car grant in place, up until at least 2022/2023.

The Government will give up to £2,500 towards purchasing a zero emissions vehicle, as long as the car price is under £35,000. This means that you will save money when purchasing your Electric Vehicle, whether you have it on finance or take out a loan. Furthermore, many manufactures have reduced the prices of the new Electric Vehicles so that people qualify for the Government grant.

When purchasing an Electric Vehicle the prices vary, as it all depends on the make and model and the range. The range is the distance the vehicle can go before it needs to be re-charged.

You may have many questions before making a decision on whether to have fiance or take out a loan when purchasing you new EV. In this article you will discover the benefits of the different options available. This will help you make your decision a little bit easier.

Purchasing an Electric Vehicle on Finance

Electric Vehicle finance is now even more popular. This is due to the Governments ban on new petrol, diesel and certain hybrid vehicles getting closer to the 2030 date.

Taking into account that finance arrangements can vary from customer to customer and car buyers should enquire with dealers for their personal rate. However, there are many dealerships and companies offering finance when buying an Electric Vehicle. Also keeping in mind that you are eligible for the UK Government plug-in grant of up to £2,500.

There are three options when taking out finance on an EV, below you will see the three options.

PCP – Personal Contract Purchase

This type of finance is that you only pay for the vehicles predicted depreciation over the length of the finance contract. This means that, the difference between the list price and the vehicles expected value at the end of the agreement, normally up to four years. As you may be aware, most new cars lose around 40 percent of their value over the first three years.

For example; if a new car costs £20,000, after 3 years it is expected to be worth £12,000. The £8,000 difference is to be paid in the form of a small deposit with fixed monthly repayments. At the end of the finance contract, the remaining £12,000 can be paid in full or you can simply hand the car back.

HP – Hire Purchase

This type of agreement involves spreading the cost of a new vehicle over a fixed period, typically 12 months to five years.

This means that at the end of the contract the car is yours, and you will not need to pay any more money. In saying that, if you are considering buying an EV, then HP might not be the best option. As you may find that your EV is slightly outdated by the end of the contract.

It may also mean that if you decide to sell your EV at the end of your contract, the trade-in value will be reduced.

PCH – Leasing an EV

You may see leasing referred to a personal contract hire (PCH), which is the consumer version of a business lease.

Leasing EV’s is growing fast, as many people want to see what the benefits are of having an Electric Vehicle. Drivers also lease the vehicles to see what the running costs are like. Leasing an EV can be much more appealing than other finance options or even buying an EV outright.


There are many benefits of purchasing an Electric Vehicle on finance. However, this will depend on which finance option you take.

With PCP finance, one of the benefits is that if you decide to not pay the remaining finance at the end of the contract, you can hand the vehicle back.

The benefits of HP finance is once you pay your final payment , you will own the vehicle. Another benefit is that you pay monthly for the vehicle with no hidden costs at the end.

Many drivers benefit from leasing an EV, as they can see what the running costs are. Remember that the maintenance cost of the vehicle is included in the lease.

Furthermore, once the contract of the lease is completed, you can upgrade to a better model.

Many people have said that leasing an EV is a more affordable option.

Many dealerships offer good rates, especially when purchasing Electric Vehicles. You can pick up a finance deal starting from just £234.00 per month, but this depends on the length of the finance, your personal circumstances and the type of finance you take.

Taking out a loan to purchase an Electric Vehicle

When you take out a loan, whether it is with the bank or with a loan company, you can find good interest rates. It is true that, interest rates vary depending on how many years you want the loan.

Before taking out a loan, you must think about your monthly budget, to ensure you can keep up with the monthly repayments. Otherwise you could lose your car.

In Scotland they offer interest free loans to people who buy second-hand Electric Vehicles, with a purchase cost of £20,000. Experts have said that the UK should roll out the same deal, to give more incentive to people buying Electric Vehicles. However, at the moment this isn’t the case.

The UK Government offer a grant of up to £2,500, when purchasing an Electric Vehicle, but there isn’t a grant for second-hand Electric Vehicles at the moment.


If you are thinking about taking out a loan to purchase an Electric Vehicle, there are a few benefits.
One of the best benefits of taking out a loan is that it can help build your credit rating. Depending on your credit rate history you can get a good interest rate with your bank.

Many banks offer good interest rates, however each bank varies and you will need to shop around. This will also depend on the amount your want to borrow and the years you have the loan on.

Remember that the Government is offering a grant of up to £2,500, and this will help with the amount your borrow from the bank.

Cheapest Electric Vehicles on the market

It is a known fact that, the prices of purchasing an Electric Vehicle is more expensive than petrol and diesel vehicles. However, in saying that, you can still pick up a good deal, especially with the Governments plug-in grant.

It is said that the Smart EQ ForFour is one of the most affordable Electric Vehicle last year (2021). The cheapest Electrical Vehicles on sale in the UK at the moment are;

⦁ Smart EQ Forfour, starting at a price of £19,795
⦁ Fiat 500, starting at a price of £20,995
⦁ Volkswagon e-up, starting at a price of £21,055
⦁ Nissan Leaf, starting at a price of £25,995

The Government Car Grant

If you are wondering how the grant works, it is easy. You don’t need to do anything, as the dealership does this on your behalf. This will then reduce the price of the vehicle.

Remember that, even on finance the grant will be deducted from the price of the vehicle and this will reduce the monthly payments.

The Government car grant in the UK is only available on new EV’s and not second-hand EV’s. However, the Government has a home charging grant available for people who purchase a new or used EV.

Moreover, it is important to know that the Government does not pay the electric car grant in cash and is only used in dealerships to reduce the price when purchasing the EV.

The upcoming EV’s for 2022-2023

Audi Q6 e-tron
The Audi Q6 e-tron will be available late 2022, with a range of 400 miles.

BMW i4
The new BMW i4 will have a range of up to 367 miles. This vehicle will be priced from £51,905.
The BMW iX will have a range of up to 380 miles and is scheduled to be availabe in November
Citroen Ami
The Citreon Ami will have a range of 43 miles and is set to be on sale in Spring. The price is to be expected to be around £6,000.
Genesis GV60
The Genesis GV60 will have a range of up to 280 miles. This vehicle is scheduled to be available by late 2022.

Mercedes EQB
The Mercedes EQB will have a range of 260 miles. This vehicle will be on sale in the Summer.
Mercedes EQE
The Mercedes EQE will have a range of up to 410 miles and is set to be available by late 2022.
Nissan Ariya
The Nissan Ariya will have a range of up to 310 miles . By September 2022 this vehicle will be on the market.
Cupra Born
The Cupra Born is expected to be on sale early 2022, with a range of up to 335 miles.
Renault Megane E-Tech
The Renault Megane E-Tech will have a range up to 292 miles and will be available by Autumn 2022. The expected purchase price will start from £30,000.
Toyota BZ4X
The Toyota BZ4X will be available in Summer 2022. However, the range has not yet been confirmed.
Volvo C40
The Volvo C40 is due to be available early 2022, with a range of 260 miles.
The VW ID5 is scheduled for mid 2022, with a range of up to 335 miles.

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