Electric
car finance

At CarFinance, we make it easy to finance new and used electric cars. With petrol and diesel bans approaching, switching to an electric is a smart step — cheaper to run, low-emission, and ready for the future.

We compare EV finance options like Hire Purchase (HP), Personal Contract Purchase (PCP) to help you find the best deal. Choose a plan that fits your monthly budget, with or without a deposit.

Why finance an electric car?

• Low running costs – Electric cars are cheaper to run and require less maintenance.
• Tax and charge exemptions – Many EVs qualify for zero road tax and congestion zone discounts.
• Flexible finance – Choose from lease, PCP, or HP, depending on how you want to drive and pay.
• Easy charging – Install a charging point at home or use the UK’s growing public network.

Can I get an electric car on finance?

Yes, you can, and it’s simpler than you might think. At CarFinance, we help you finance an electric car just as easily as a petrol or diesel car. You can choose from flexible finance options like Personal Contract Purchase (PCP), Hire Purchase (HP), or Conditional Sale, depending on how you want to spread the cost.

Electric cars often have a higher upfront price, but monthly payments can make them more manageable. You can apply for electric car finance without needing a large deposit, and we work with a wide panel of lenders to offer you finance deals that fit your credit rating and monthly budget.

Our process is clear, quick, and free. You choose the make and model, and we help you find the best way to finance it.

The different electric car finance options

Hire Purchase

Hire Purchase (HP) is a straightforward type of finance that lets you spread the cost of your electric car into fixed monthly payments. You pay a deposit, then make regular payments over a set term. Once you reach the end of your agreement, the car is yours — no optional final payment required.

This option suits drivers who want to keep the car and avoid mileage limits. It’s available for used electric or new electric cars, and we offer £0 deposit amount options for added flexibility. We work with a wide panel of lenders, including options for those with bad credit (subject to status). Every offer includes a clear total amount payable and representative example, so you know exactly what you’ll pay.

Personal Contract Purchase (PCP)

Personal Contract Purchase (PCP) offers lower monthly payments compared to HP. You pay a deposit, then spread the remaining total cost of credit across a fixed term. At the end of your agreement, you can choose to:

• Make an optional final payment and keep the car
• Return it with nothing more to pay (subject to mileage and condition)
• Part-exchange it for a new electric car

PCP is a flexible car finance deal if you’re not sure how long you’ll keep the vehicle or want to upgrade regularly. We offer PCP finance options with no deposit, and your application won’t affect your credit score thanks to our soft credit check tool.

Can I apply for electric car finance with bad credit?

Of course you can apply for electric car finance with bad credit and still find a deal that works. At CarFinance, we help you compare offers from a wide panel of lenders, including those who consider low or impaired credit scores.

You don’t need to pay an initial deposit to get started. Many of our lenders offer no-deposit options, letting you make monthly payments that suit your budget and credit rating. All finance offers are subject to status, and rates vary depending on your personal circumstances.

All quotes are based on your total amount repayable, so you see the total cost upfront, no surprises here. You’ll also receive a representative APR to help compare car finance deals fairly.

Our process is fast and online. Just tell us the make and model you're interested in, and we’ll guide you through your EV car finance options. You stay in control, we just help you find the best deal.

What to consider before buying an electric car on finance

Before purchasing an electric car on finance, consider the following:

• Budget: Determine how much you can afford for monthly payments and initial costs.
• Charging infrastructure: Ensure convenient access to charging stations in your area.
• Running costs: Estimate electricity costs versus petrol and diesel cars expenses.
• Range: Check the electric car's range to suit your daily driving needs.
• Warranty coverage: Understand warranty terms for the battery and vehicle.
• Financing options: Explore Hire Purchase or Personal Contract Purchase to find the best fit for your financial situation.

Types of electric vehicles that can be financed

You can finance three main types of electric vehicles through CarFinance:

1. Fully Electric Vehicles (EVs): These cars run only on battery power. They produce zero emissions, qualify for low-emission benefits, and charge via a home charger or public charging point. They suit drivers with predictable daily mileage and access to regular charging.
2. Plug-in Hybrid Electric Vehicles (PHEVs): Plug-in hybrids combine a battery-powered motor with a petrol engine. You can drive short distances using electricity only, then switch to fuel for longer trips. They need external charging and offer flexibility for mixed journeys.
3. Hybrid Electric Vehicles (HEVs): Full hybrids use a smaller battery and charge themselves through braking and engine use. You can't plug them in, but they reduce fuel use and emissions compared to petrol or diesel cars.

Each type offers different benefits and charging requirements. Contact CarFinance to explore financing options for these electric vehicle types.

Is it financially better to finance an electric car (EV)?

Electric cars cost more upfront, but often save you more over time. Charging an electric car usually costs less per mile than topping up a petrol or diesel car. You’ll also reduce maintenance costs, since electric vehicles have fewer moving parts and no internal combustion engine.

You can cut running costs further with local exemptions. Many electric cars qualify for zero road tax and avoid congestion or ULEZ charges. These savings add up, especially if you drive regularly in urban areas.

The higher cost of buying an EV comes mostly from the battery, which remains one of the most expensive parts to produce. You should also budget for a home charging point, which typically costs between £500 and £1,500 to install.

If you're flexible on model or brand, there are electric cars that cost less, including used electric vehicles and hybrid cars. Models like the Renault Zoe or Smart EQ ForTwo often offer strong affordability with shorter ranges suited to city driving.

Charging times vary. Most drivers charge overnight, with typical hours to charge from empty ranging between 8 and 12 using a standard home unit.

Benefits of electric vehicles

Environment Advantages

Electric vehicles (EVs) produce no exhaust emissions. They reduce air pollution, especially in cities, and help slow climate change. Unlike a car with an internal combustion engine, an EV doesn't burn fuel. That makes every trip cleaner and low-emission by default.

As electric cars become more popular, many local councils offer free or discounted parking and access to clean air zones — ideal for daily city use.

Economic Advantages

Electric cars tend to be cheaper to run than petrol or diesel cars. You’ll pay less for energy, maintenance, and tax. Most EVs qualify for zero Vehicle Excise Duty (VED) and avoid congestion charges in zones like London.

Many used electric cars also cost less upfront. Popular models like the Renault Zoe or Smart EQ ForTwo offer great value, especially through car lease or flexible vehicle finance options. With fewer moving parts, maintenance stays simple and cheap.

Driving Advantages

EVs offer quick, smooth acceleration. You get instant torque, quiet driving, and no gear shifts. Electric cars work well for stop-start traffic and short commutes. Some EVs offer one-pedal driving and regenerative braking, adding comfort and efficiency.

Most charging points let you charge an electric car from empty in 8 to 12 hours using a standard home setup. Faster options are available at public stations.

Ownership flexibility

You can finance an EV through hire purchase, personal contract purchase, depending on how you want to spread the cost of buying. If you finance through PCP, you’ll have a balloon payment at the end of your agreement if you want to keep the car. Or you can hand it back or trade it in for a new car.

We work with FCA-regulated lenders (Financial Conduct Authority) and approved dealerships to offer secure, competitive finance deals. Every offer includes a clear breakdown of the total cost and terms.