Electric
Car Finance
EV, PHEV and hybrid cars consideredSoft credit check, no impact on your credit score15+ specialist UK lenders compared
Finance an electric car from 15+ specialist UK lenders with rates from 9.9% APR, representative 21.9% APR. Whether you're looking at a new BEV, a plug-in hybrid or a used EV, CarFinance compares electric car finance deals across our full lender panel in one soft credit search. Monthly payments from £228.11/month on a £7,500 car over 48 months at 21.9% APR representative. Free quote, no impact on your credit score. A full credit check is carried out by the lender if you proceed to a formal application.
No minimum credit score: all credit profiles considered
Finance type: HP and PCP both available for EVs; HP recommended for used electric cars
Rates: from 9.9% APR, representative 21.9% APR (varies by lender, deposit and credit profile)
Term: 24 to 60 months
Deposit: optional; a larger deposit reduces the monthly payment
Moneyrepublic Ltd (FRN: 967024) trading as car-finance.co.uk acts as a credit broker, not a lender, regulated as an Appointed Representative of F&I Online Ltd (FCA No. 731217), authorised by the Financial Conduct Authority.
Last Updated: Aug 2026
How to get electric car finance?
Getting a car loan is easy - you just need to follow a few steps to get the most favourable offer possible.
Check your eligibility
Compare lenders and choose your deal
Drive away your electric car
We Work with 15+ Trusted UK Car Finance Lenders
We work with over 15 lenders offering 100+ HP and PCP deals so that you could have the best offer.
We are credit broker, not a lender.
Electric car finance calculator
With the help of the calculator you can roughly estimate possible car loan options.
Finance calculator
- 36 mo
- 42 mo
- 48 mo
- 60 mo
Your estimated examples
Representative example: Borrowing £7,500 over 48 months with a representative APR of 21.9%, monthly payment of £228.11, total cost of credit £3,449.21, total amount payable £10,949.21. Rates from 9.9% APR. We are a credit broker, not a lender.
With the help of the calculator you can roughly estimate possible loan options.
Total payable includes interest, the option-to-purchase fee, and any documentation fees. The actual rate depends on credit profile, deposit, and chosen lender.
Rates from 9.9% APR. We are a credit broker, not a lender.
What is electric car finance?
Electric car finance is a Hire Purchase (HP) or Personal Contract Purchase (PCP) agreement used to buy an EV. The product covers battery electric vehicles (BEV), plug-in hybrids (PHEV) and self-charging hybrids (HEV). You pay a deposit and fixed monthly instalments over 24 to 60 months. EV-aware lenders on the CarFinance panel price residual values for electric vehicles more accurately than general lenders.
Buying an electric car on finance suits drivers who want to spread costs over 24 to 60 months instead of paying £30,000+ upfront. PCP suits new EVs because the high Guaranteed Future Value (GFV) reduces monthly payments. HP is recommended for used electric car finance, since you own the car at the end. Popular models include the Tesla Model 3, Nissan Leaf, Kia EV6 and Hyundai Ioniq 5.
CarFinance compares 15+ UK lenders in one soft credit search, including EV-specialist lenders that mainstream brokers may not access. The service is free and works with any FCA-registered UK dealer. A full credit check applies only if you proceed to a formal application. CarFinance is regulated as an Appointed Representative of F&I Online Ltd (FCA No. 731217).
How do electric car finance payments work?
Electric car finance payments combine an optional deposit, fixed monthly instalments and, for PCP, a final balloon payment. The size of each component depends on the car price, term length and APR offered by the lender.
HP example: Representative Example: Borrow £7,500 over 48 months with a £0 deposit. Representative 21.9% APR fixed rate. Monthly payment: £228.11. Option to purchase fee £10 payable. Total cost of credit: £3,449.21. Total amount repayable: £10,949.21. You own the car after the final instalment.
PCP electric car example , indicative: £25,000 new EV, £3,000 deposit, 48 months at 9.9% APR with an £8,500 optional final payment. Monthly payment works out at around £412. At the end of the term, three options apply. You can pay the balloon to keep the car, return it, or use any equity towards another vehicle.
Six factors affect the monthly payment:
- Deposit amount: optional; a 10% deposit reduces the monthly payment and may improve the rate offered.
- Loan term: 24 to 60 months, with longer terms reducing the monthly payment but raising total interest paid.
- Credit profile: stronger credit scores attract lower APRs from prime lenders on the panel.
- APR rate: rates from 9.9% APR, with representative 21.9% APR; the rate offered depends on lender appetite and applicant profile.
- Vehicle value: new EVs carry higher GFVs on PCP, which lowers the monthly payment on a PCP electric car.
- PCP balloon payment: the optional final payment, also called GFV, is set at the start of the agreement and is paid only if you choose to keep the car.
BEV vs PHEV vs HEV: which electric car finance option is right for you?
Most UK drivers switching to EV car finance pick one of two routes. A new BEV on PCP gives the lowest monthly payment. A used BEV on HP is the most affordable entry point. The table below compares the three powertrain types across the factors that matter most for finance.
| Factor | BEV (full electric) | PHEV (plug-in hybrid) | HEV (mild or self-charging hybrid) |
|---|---|---|---|
| Tailpipe CO₂ emissions | 0 g/km | Low when running on battery | Petrol/diesel emissions |
| Electric Car Grant eligible | Yes, if under £37,000 and listed by OZEV | No | No |
| Home charger recommended | Yes for daily use | Optional, useful but not essential | Not required |
| PCP balloon (GFV) profile | High GFV on new models from major brands | Moderate GFV | Lower GFV than BEV or PHEV |
| APR range on CarFinance panel | From 9.9% APR, rep. 21.9% APR | From 9.9% APR, rep. 21.9% APR | From 9.9% APR, rep. 21.9% APR |
| Mileage limit (PCP) | Set per agreement | Set per agreement | Set per agreement |
| Term length | 24 to 60 months | 24 to 60 months | 24 to 48 months |
| Road tax (VED) 2026/27 | £10 first year, £200 standard | First year by CO₂, £200 standard | First year by CO₂, £200 standard |
| ULEZ compliant | Yes | Yes (most) | Yes (Euro 4 petrol or Euro 6 diesel) |
For a full move to zero tailpipe emissions, a BEV on PCP or HP is the cleanest choice. PHEVs suit drivers with longer journeys. HEVs use the same CarFinance lender panel but are not zero-emission.
The pros and cons of electric car finance
Pros
- Comparing quotes with CarFinance can significantly reduce the cost of electric car finance
- Soft credit check on the initial quote; applying for an electric car on finance does not affect your credit score (full check at formal application only)
- Lower fuel costs; home charging on an EV tariff costs roughly £5 per 100 miles vs around £15 in petrol
- Comparing 15+ lenders helps secure cheap electric car finance options, with new EVs under £37,000 also eligible for the UK Electric Car Grant worth up to £3,750
- ULEZ and most UK Clean Air Zones exempt fully electric cars from daily charges
- PCP option preserves flexibility at the end of the term: return, buy or part-exchange
- Company directors and sole traders pay only 4% Benefit-in-Kind on EVs in 2026/27, vs up to 37% for petrol or diesel
- HP and PCP both offered on the same lender panel, with terms from 24 to 60 months and flexible deposit options
Cons
Higher vehicle purchase price than equivalent petrol or diesel models- PCP mileage limits apply; exceeding them triggers per-mile penalty charges at the end of the term
- Home charger installation costs around £800 to £1,200 for a 7kW unit
- Used EV battery health varies with age and mileage, which may affect range and resale value
- Electric vehicles now pay VED from April 2025; £200 standard rate from year two
- Longer loan terms on high-value EVs increase the total interest paid over the agreement
- Public rapid charging is more expensive than home charging, and the network is patchier outside major cities
- BEVs lost the 100% London Congestion Charge discount on 2 January 2026; central London journeys now cost £18 per day (£9 with Auto Pay)
Who can apply for electric car finance?
Electric car finance UK is open to UK residents aged 18 or over with a regular income and a valid UK driving licence. There is no minimum credit score, and the panel includes lenders that consider adverse credit. Most applications receive a decision the same day. The initial check is a soft search; a full credit check is carried out only if you proceed to a formal application.
Five eligibility profiles accepted on the CarFinance panel:
- First-time EV buyers: no prior EV ownership history is required; all driving histories accepted.
- Bad credit, CCJs, defaults or IVAs: specialist lenders on the panel consider adverse credit for electric car finance; see bad credit car finance for the full eligibility list.
- Self-employed and limited company directors: accepted with 2 to 3 months of bank statements or the most recent SA302 tax return; business EV finance is tax-efficient at 4% BIK in 2026/27.
- Used EV buyers: used electric car finance deals are available on vehicles up to 10 years old; lenders may request a battery health report on older vehicles.
- No deposit applicants: no deposit car finance is available, though adding a 10% deposit may improve the rate offered.
All lenders on the panel are FCA-regulated and required to carry out an affordability assessment before approval. CarFinance acts as a credit broker, not a lender. Whether you want to compare electric car finance deals UK-wide or buy an electric car on finance from a specific dealer, the quote process takes under 2 minutes.
Why choose us?
We offer many favourable car loan options for your needs and select the best deals from reliable providers
Check your eligibility online
Soft credit check, no impact on your score; a full check is carried out only if you proceed to a formal application. Apply online in minutes, no paperwork, decision the same day in most cases.
Buy an EV from any dealer
Buy from any FCA-registered dealer across the UK, new or used. Once approved, collect in person or arrange delivery.
EV finance quality assured
Every electric car financed through CarFinance is HPI checked, covering outstanding finance, write-off history, mileage verification and MOT history.
15+ UK lenders compared
CarFinance compares electric car finance deals from 15+ specialist UK lenders in one search and finds your best available rate automatically.
FCA-regulated, free service
CarFinance is regulated as an Appointed Representative of F&I Online Ltd (FCA No. 731217). The service is free, with no hidden fees and no commission added to your rate.
EV-specialist lenders: rates from 9.9% APR
The CarFinance panel includes specialist lenders that price electric vehicle depreciation, battery health and residual values accurately, giving access to cheap electric car finance options that general lenders may not match.
Frequently asked questions about electric car finance
We've collected the most popular questions about car loans from our customers
Can I get electric car finance with bad credit?
Yes. Specialist lenders on the CarFinance panel consider electric car finance applications from customers with bad credit, CCJs, defaults and IVAs. There is no minimum credit score. The soft credit check compares 15+ specialist UK lenders in one search, with no impact on your credit score. A full credit check is carried out only if you proceed to a formal application.
Does applying for electric car finance affect my credit score?
No. CarFinance uses a soft credit search to match you with lenders, which leaves no footprint on your credit file. A full credit check is only carried out by the lender you choose to proceed with, after you have reviewed and accepted your personalised EV finance offer.
How quickly can I get approved for electric car finance?
Most customers receive a decision the same day. Once your electric car finance is approved, your CarFinance specialist liaises directly with the dealer. Most customers collect their EV within 2 to 5 working days. The process starts with a free soft-check quote that takes under 2 minutes online.
What is the difference between PCP and HP for electric cars?
A PCP electric car deal suits new EVs: lower monthly payments, an optional balloon payment at the end, and mileage limits apply. HP (Hire Purchase) suits used electric cars: you own the vehicle after the final payment, with no mileage restrictions. CarFinance compares both options from 15+ specialist lenders in one search if you want to buy an electric car on finance.
What APR can I expect on electric car finance?
Electric car finance rates start from 9.9% APR, with a representative APR of 21.9%. Your actual rate depends on credit profile, deposit, loan term and the lender matched to you. Representative Example: Borrow £7,500 over 48 months with a £0 deposit. Representative 21.9% APR fixed rate. Monthly payment: £228.11. Option to purchase fee £10 payable. Total cost of credit: £3,449.21. Total amount repayable: £10,949.21.
Can I get electric car finance with no deposit?
Yes. No deposit electric car finance is available through specialist lenders on the CarFinance panel. Applying without a deposit may affect the APR offered. Adding even a small deposit of around 10% can improve both your approval odds and the rate you are offered.
Can I finance a used electric car?
Yes. Used electric car finance deals are available through CarFinance on vehicles up to 10 years old. Lenders may request a battery health report on older EVs. Hire Purchase is the most common finance type for used electric cars, with no mileage limits, and you own the vehicle outright after the final payment.
Are there government grants available alongside electric car finance?
Yes, the UK Electric Car Grant launched on 16 July 2025 offers up to £3,750 off eligible new EVs under £37,000 (Band 1) or £1,500 (Band 2). The grant is applied automatically by the dealer at point of sale. Business buyers can also claim 100% first-year capital allowance on new EVs via HMRC.
Can I get electric car PCP no deposit on a new EV?
Yes. Electric car PCP no deposit is available through specialist lenders on the CarFinance panel. On a new EV, the high Guaranteed Future Value (GFV) already lowers monthly payments. Combining this with no deposit makes new EV ownership accessible. Mileage limits and end-of-term options, return, buy or part-exchange, still apply.
Which electric cars can I finance through CarFinance?
CarFinance can finance any EV available from an FCA-registered UK dealer, including the Tesla Model 3 and Y, Nissan Leaf, Kia EV6, Hyundai Ioniq 5 and 6, BMW iX and i4, Volkswagen ID.3 and ID.4, Polestar, MG ZS EV, and PHEV models from most mainstream manufacturers. Both new and used electric cars on finance are eligible. UK Electric Car Grant eligibility is a separate question; check the current Band 1 and Band 2 list at GOV.UK.
Is electric car finance cheaper than petrol or diesel car finance?
Not automatically. Broker-arranged finance through CarFinance starts from 9.9% APR for both petrol/diesel and EVs. However, new EVs often come with manufacturer-funded 0% APR or low-APR PCP deals direct from the dealer. Combined with lower fuel costs, around £5 vs £15 per 100 miles, and 4% BIK for company cars, total EV running costs are usually lower.
Can self-employed people get electric car finance?
Yes. Self-employed applicants, sole traders and limited company directors can all apply for electric car finance through CarFinance. Lenders require 2 to 3 months of bank statements or an SA302 tax return as proof of income. Business EV finance also offers tax advantages, with EV company cars taxed at just 4% Benefit-in-Kind in 2026/27. Compare electric car finance with CarFinance today: free quote, no obligation, soft check only. A full credit check is carried out only if you proceed to a formal application.
Apply for electric car finance today: free and no credit impact
Soft credit check only; full credit check carried out by the lender if you proceed to a formal application. No deposit needed. Decision in minutes.
