Zuto can help you find electric car finance or hybrid car finance. As a broker, we work with a panel of lenders who understand the ins and outs of electric car ownership.
Zuto is a credit broker, not a lender. Our rates start from 10.6% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £8,000 over 60 months with a representative APR of 20.9% the amount payable would be £208 a month, with a total cost of credit of £4,486 and a total amount payable of £12,486.
Every year, manufacturers add more electric car models (also called electric vehicles, or EVs) to their product line-ups, as part of a big push ahead of 2030 when you’ll no longer be able to buy a brand-new petrol or diesel car in the UK. Electric car registrations are more than doubling every year, with Zuto’s partner AutoTrader predicting we’ll be buying more EVs than diesel and petrol by 2025.
The huge growth in new models means we’re now also seeing an increase in used electric cars, meaning more choice for different budgets.
Zuto can help you find electric and hybrid car finance deals that are right for you. As a broker, we work with a panel of lenders who understand the ins and outs of electric car ownership.
While electric cars cost more on average than traditional models, this doesn’t mean that you won’t be able to get this type of vehicle on finance. Electric car financing can be a more affordable way of getting a more expensive car, and it’s available to a wide range of people.
Whether or not you qualify for electric car financing is dependent on the same factors that affect accessing finance in general. In other words, your credit rating, your income and how stable it is, plus certain age requirements. But even people with low credit scores may be able to get finance for an electric or hybrid car depending o n their individual circumstances.
That opens up the possibility of driving a car that offers both environmental and economic benefits. It’s cheaper to run an electric car than its diesel or petrol equivalent in terms of fuel cost, while the reliability of electric models also offers the very real possibility of lower maintenance costs.
You can pay for an electric car on finance, just as you can a traditional car, with three main types – Zuto HP finance, Personal Contract Purchase finance and personal loans. However, there are some ways that EV finance differs to standard petrol, diesel, or hybrid:
In the long term, you’re likely to save money financing an electric vehicle, with less to pay than petrol or diesel on vehicle tax and running costs – even with the extra spend on electricity.
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An electric car’s battery might not be included in its price, so you might have to lease it separately. The difference in the prices of cars with and without batteries can be large, so it’s best to be sure before you commit.
Although this is different to what we’re generally used to with car ownership, it can be useful – if the battery’s efficiency drops below a set level, it’ll be replaced.
The basics are still the same for buying an electric car on finance as they are for a petrol or diesel vehicle. However, it’s worth thinking about the following for an EV:
It’s a great time to go electric; EVs are becoming more affordable and there’s an ever-increasing selection to choose from. And of course, there are the obvious reasons – they’re good for the environment and fun to drive.
Here are the key benefits to be aware of.
Buying an EV comes with plenty of environmental and economic benefits, but there are a few areas you should be aware of before committing to electric car finance:
If you’re keen to help the environment but don’t think an EV fits your lifestyle, you could consider hybrid car finance. Hybrid cars combine normal petrol/diesel engines with electric. There are two different types of hybrid cars to finance:
Used electric cars are getting more and more affordable, with more manufacturers involved in the sector than ever before. Here are some examples of what’s available, although the estimated price quotes can vary depending on condition, mileage and other factors.
Finance costs are just an estimate, based on a four-year Hire Purchase agreement.
2020 Vauxhall Corsa-e
Estimated price = £16,000
Approximate monthly finance cost = £483
2018 Nissan Leaf
Estimated price = £9,500
Approximate monthly finance cost = £287
2019 Tesla Model 3
Estimated price = £24,000
Approximate monthly finance cost = £725
Zuto is a credit broker, not a lender. Our rates start from 9.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £7,500 over 48 months with a representative APR of 21.4% the amount payable would be £226 a month, with a total cost of credit of £3,369 and a total amount payable of £10,869.
Running an electric car comes with different costs to those we’re used to with petrol- or diesel-engine vehicles.
We’ve compared how much a used electric car can cost compared to a diesel-engine vehicle - the Nissan Leaf is one of the most popular EVs on AutoTrader at the moment and the Golf remains one of the UK’s top-selling cars.
Rather than choosing the cheapest cars on the market, we’ve selected ones in a really competitive area – almost £8,000 to buy outright. We’ve excluded MOT, tyres and consumables.
Used Nissan Leaf £7,950
Finance repayments = £232.14
Insurance per month = £22.04
Tax = £0
Dealer servicing - divided by 12 (actual cost in brackets) = £13.25 (£159)
Cost in fuel/energy (20 miles per day) = £24
Monthly total = £350.72
Used VW Golf 1.6 TDI BlueMotion Hatchback £7,995
Finance repayments = £253.76
Insurance per month = £22.31
Tax = £0
Dealer servicing - divided by 12 (actual cost in brackets) = £15.33 (£184)
Cost in fuel/energy (20 miles per day) = £49.04 (based on combined 74.3mpg)
Monthly total = £427.13
Estimated costs from real-world examples: a 2015 VW Golf 1.6 TDI BlueMotion Tech (s/s) 5dr with 74,500 miles, on the market at £7,795 and a 2015 Nissan Leaf Tekna with 42,559 miles, on the market at £7,950. Prices correct as of July 2021.
Insurance estimates based on a 42-year-old male driver with 9 years' no claims and living in a low-risk area.
The Leaf works out at an estimated £76.41 cheaper per month than the Golf.
Of course, cheaper versions of both cars are available, and money can be saved through servicing and insurance – but for day-to-day driving? Electric is simply much cheaper.
Fully electric cars are currently exempt from car tax (Vehicle Excise Duty, VED) and the benefit-in-kind (BiK) tax rate for vehicles is also 0%.
It’s also worth noting that cars registered between 1 March 2001 and 31 March 2017 have different tax rates to those built before or after, which is why the Golf in our example (emitting 99g/km CO2) pays no tax – but the identical car registered today would pay £160 a year.
Now you know more about electric cars and the differences between EVs and traditional vehicles. If you’d like to buy a used one on finance, it’s easy with Zuto.
We need some details from you such as your address and how much you're looking to borrow. This should only take a couple of minutes and you’ll receive a decision within 60 seconds.
We’ll carry out a soft credit check, which won’t affect your credit score. If approved with one of our lenders, we will call you to discuss the quotes and any next steps.
If you're happy with the quotes provided, all that's left to do is to find you the perfect electric car and drive away happy.
Some lenders will only finance the car and you will have to lease the battery separately. It’s another monthly cost to consider when you budget before committing. But if your battery becomes faulty, most manufacturers will it replace free of charge.
It’s recommended you lease the battery for the same term as the loan itself. The benefits of leasing the battery is if something goes wrong, or the battery life reduces, you should be covered for a replacement through the leasing company.
There are no grants for used electric cars.
A government plug-in grant is available for buying a new EV. To be eligible, the car must cost less than £35,000. This is the recommended retail price and includes VAT and delivery fees. The grant will pay for 35% of the purchase price, up to a maximum of £2,500.
Electric car batteries typically last eight to 10 years. Refurbished replacements cost around £2,500 and new ones are around £5,000.
The latest EV batteries are less susceptible to cold weather and battery range is much-improved. It’s unlikely to be an issue in the UK.
If you finance the car through HP car finance, you would have to sell the car and pay off the current finance agreement with the money you have sold it for. If this leaves you in negative equity, you may have to add money to it, or account for it in your next finance agreement.
If you finance an EV through PCP finance, you need to be at least half-way through your agreement to do a voluntary termination.
Yes, it’s possible to get finance for an electric car even if you have bad credit. A poor credit score may mean that you pay higher interest rates on your electric car finance deal, or perhaps you may have to pay a larger deposit or balloon payment, although that will depend on the individual lender and the type of financing you want. As electric cars tend to be more expensive than traditional petrol-fuelled cars, more credit may be required and that can also impact on the size of deposit required.