Can I get car finance for an electric car?
Yes, you can get electric car finance regardless of your credit history. Electric car finance works exactly like traditional vehicle finance – you borrow money to cover the cost of your electric car and make monthly payments over an agreed term. We offer hire purchase and personal contract purchase options for used electric vehicles. Your credit score doesn't automatically prevent approval, and Carplus specialises in helping UK drivers switch to electric, even if some lenders have refused you elsewhere.
You're looking at significant savings once you own your EV vehicle: you can charge your car at home for less than petrol costs, and you pay less on road tax compared to conventional vehicles. This makes electric cars that cost less to run accessible regardless of your credit background.
Car finance calculator
These estimates are subject to credit checks and may change when you apply for finance. this is for example purposes only
Hire Purchase (HP)
APR 11.9%60 monthly payments of
£0
- Interest rate
- 11.9% APR
- Amount of interest
- £0
- Total payment
- £0
Personal Contract Purchase (PCP)
APR 11.9%60 monthly payments of
£0
- Optional final payment
- £0
- Interest rate
- 11.9% APR
- Amount of interest
- £0
- Total payment
- £0
Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Representative Hire purchase (HP) example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0, the amount payable would be £185.33 per month, with a total cost of credit of £4,119.81 and a total amount payable of £11,119.81. We look to find the best rate from our panel of lenders and will offer you the best deal that you're eligible for. We receive a fixed fee commission per finance agreement, or we receive a commission based on a percentage of the total amount of finance taken. This will not affect the interest rate offered or the total amount repayable. Our service is free.
What is electric car finance?
Electric car finance lets you borrow a lump sum to buy a car without paying the full price upfront. You spread the cost across monthly payments, repaying the amount you borrowed plus interest over an agreed term. This makes switching from petrol or diesel more accessible, as you can drive an electric car immediately rather than saving for years.
You can choose from several finance types including hire purchase, personal contract purchase, or lease agreements. Electric cars produce zero emissions and typically have lower running costs than petrol or diesel cars, making finance an attractive way to access these benefits without a large upfront payment.
Our customers who have already got car finance!
- High Acceptance Rate
- Representative APR 21.9%
- Rated excellent on Trustpilot
What is the best way to finance an electric car?
The best way to finance an electric car depends on your ownership goals and budget. You can choose between hire purchase or personal contract purchase as your main options. Your decision comes down to owning the car outright or keeping flexibility to upgrade when your electric car becomes outdated.
HP car finance
Hire purchase lets you spread the cost across fixed monthly payments until you own the car completely. You make a deposit followed by regular payments over 12 to 60 months, with a small option-to-purchase fee at the end. Once you pay this final payment, the electric car becomes yours to keep or sell. HP suits drivers who want full ownership and don't need to worry about mileage limits, though monthly payments cost more than PCP alternatives.
PCP car finance
Personal contract purchase offers lower monthly payments by deferring part of the car's value until the end of your agreement. You pay a deposit and fixed instalments over 24 to 48 months, with the total amount covering depreciation rather than the full price. At the car at the end of your term, you have three options: return it with nothing more to pay, make the optional final payment to buy the car, or trade it towards your next vehicle. PCP suits drivers who want flexibility and may be able to upgrade to newer models every few years.
Can I apply for electric car finance with bad credit?
Yes, you can apply for electric car finance with bad credit history. Carplus connects you with specialist lenders across the UK who consider your full financial picture, not just your credit score. We compare electric car finance deals from multiple providers to find the best deal for your circumstances. Your credit history doesn't stop you from switching to an electric vehicle and enjoying the benefits of owning an electric car.
Can I get car finance for an electric car with no deposit?
Yes, you can get electric car finance without putting down a deposit through Carplus. We connect you with lenders who offer zero deposit options, letting you borrow the full vehicle cost. This means you can start driving immediately without spending months saving for an upfront payment.
Your monthly payments will be higher because you're borrowing the entire amount. Our lenders assess your affordability before approving any agreement. You also have the option to choose PCP finance with no deposit, giving you flexibility when your term ends. This approach removes the savings barrier and makes owning an EV accessible regardless of your current financial position.
What are the requirements for EV car finance?
To apply for an EV finance, you must meet basic lending criteria. We verify these details to match you with specialist lenders from our panel.
Your requirements
- Age 18-75 years old
- UK resident with recent address history
- Full UK driving licence
- Monthly income of £1,000 or above from employment or self-employment
- Provide details of income and regular expenses
Vehicle criteria
- Purchase price £4,000-£40,000
- Maximum 120,000 miles on the odometer
- No older than 14 years at the end of the finance agreement
- Meets lender's valuation and condition standards
How to buy an electric car on finance
Getting electric car finance follows a straightforward three-step process through Carplus.
Step 1: Submit your online application
Complete our quick application form with your personal and financial details. We compare electric car finance deals from our lender panel without affecting your credit score. Your instant quote displays your approved amount, monthly payments, and total amount payable within minutes.
Step 2: Lender assessment and approval
Our specialist lenders assess your credit history, employment status, and affordability. This stage includes verifying your income and ability to make monthly payments. You may need to provide bank statements or payslips. Final approval typically takes 24-48 hours.
Step 3: Sign your agreement and collect your vehicle
Review your finance agreement carefully before signing. Submit your driving licence, proof of income, and proof of address. Choose your electric car from our approved dealer network. Lenders release funds directly to the dealership, and you collect your vehicle within days.
Types of electric vehicles that can be financed
Carplus offers finance for hybrid or electric vehicles to suit different driving needs. You can choose from pure electric cars, plug-in hybrids, or self-charging hybrids.
Electric vehicles
Pure electric vehicles run entirely on battery power with no petrol or diesel engine. You charge them at home or at public charging stations. Electric cars have fewer moving parts than conventional vehicles, reducing maintenance costs over time. These environmentally friendly vehicles produce zero emissions while driving and offer the lowest running costs per mile.
Plug-in hybrid electric vehicles (PHEVs)
Plug-in hybrids combine an electric motor with a petrol or diesel engine. You can charge the battery by plugging in, giving you 20-50 miles of electric-only driving. The petrol engine automatically takes over when the battery runs low. PHEVs suit drivers who want electric benefits for daily commutes but need petrol backup for longer journeys.
Full hybrid electric vehicles (FHEVs)
Full hybrids use both an electric motor and a petrol or diesel engine but cannot plug in to charge. The battery recharges automatically through the engine and regenerative braking. These vehicles work best at low speeds, with the petrol engine supporting at higher speeds. FHEVs cost less than plug-in models and require no charging infrastructure.
Benefits of electric vehicles
Running an electric car costs significantly less than petrol and diesel cars across multiple areas. You need to pay less for fuel, maintenance, and road tax when you switch to electric power. The table below compares the key financial and environmental benefits:
| Benefit | Electric Cars | Petrol and Diesel Cars |
|---|---|---|
| Fuel costs | Charge at home for £3-£10 per 100 miles depending on your electric bill | Fill up at petrol station for £12-£18 per 100 miles |
| Road tax (Vehicle Excise Duty) | £0 for zero-emission vehicles | £190-£600+ annually depending on emissions |
| Clean Air Zones | Free or heavily discounted entry to clean air zones | Daily charges of £8-£15 in cities like London, Birmingham, Manchester |
| Maintenance | Cars have fewer moving parts - no oil changes, fewer brake replacements | Regular servicing including oil, filters, exhaust systems |
| Emissions | Zero tailpipe emissions - environmentally friendly driving | Produces CO2 and harmful pollutants |
| Home charging | Install a charging point at your home for convenient overnight charging | Must visit petrol stations regularly |
Electric cars we can finance
Carplus provides the best electric car finance deals for used electric vehicles from all major car brands in the UK. Our approved dealer network stocks quality used models with verified history and remaining warranty coverage.
Popular used electric car models we finance:
- Nissan Leaf - Reliable and affordable, offers ranges up to 100 miles on older models
- Renault Zoe - Compact city car with low running costs
- Tesla Model 3 - Premium performance with long-range capability
- Volkswagen ID.3 - Practical hatchback with modern technology
- MG4 - Excellent value with competitive range
- BMW i3 - Distinctive design with premium interior
- Hyundai Kona Electric - Versatile crossover with family-friendly space
- Kia e-Niro - Long range and comprehensive warranty coverage
Used electric vehicles offer better value than new models whilst delivering the same zero-emission benefits. We finance electric cars from reputable dealers across the UK who meet our lending criteria, ensuring you drive away in a quality vehicle.
What are the prices of electric vehicles?
Used electric vehicles offer excellent value compared to buying new, with quality models available from £8,000 upwards in the UK. Prices vary based on age, mileage, battery condition, and model specification. A used EV delivers zero-emission driving at a fraction of the cost of new models, making electric ownership more accessible.
| Price Bracket | Example Models | What to Expect |
|---|---|---|
| Budget (£8,000-£15,000) | Nissan Leaf (2015-2018), Renault Zoe (2015-2017), BMW i3 (2014-2016) | 80-150 mile range, higher mileage 40,000-70,000 miles, basic technology |
| Mid-range (£15,000-£25,000) | Nissan Leaf (2019-2021), Hyundai Kona Electric (2019-2020), MG ZS EV (2020-2021) | 150-250 mile range, moderate mileage 20,000-50,000 miles, modern features |
| Premium (£25,000-£40,000) | Tesla Model 3 (2019-2021), Volkswagen ID.3 (2021-2022), BMW i4 (2022-2023) | 250-350 mile range, low mileage under 30,000 miles, advanced technology |
Used electric cars from reputable car brands typically include remaining manufacturer warranty on the battery, often covering 8 years or 100,000 miles. Older models tend to be more expensive to insure than newer equivalents, but running costs remain lower than petrol and diesel models. Most used EVs have undergone battery health checks, ensuring the power storage retains 80%+ of original capacity.
Carplus offers the best electric car finance deals on used electric vehicles across the UK. We work with approved dealers who provide comprehensive vehicle history and battery certification. Finance makes quality used EVs affordable through monthly payments tailored to your budget.
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FAQ
Where can I finance an electric car online?
You can finance an electric car online through Carplus by completing our quick application form. We compare electric car finance deals from multiple specialist lenders and provide instant decisions. Our online process takes under 10 minutes, and we connect you with approved dealers across the UK who stock quality used electric vehicles.
Do Carplus offer 0% car finance on electric cars?
Carplus does not offer 0% finance on electric cars. We provide realistic, transparent rates from specialist lenders based on your circumstances. Each quote includes a representative example showing the total amount payable, interest rate, and monthly payments. Our competitive rates make the best electric car finance accessible regardless of credit history.
How do I find the cheapest electric car finance?
Compare electric car finance deals from multiple lenders through Carplus to find the best deal for your circumstances. We assess your affordability and credit profile, then present competitive rates from our lender panel. The cheapest option depends on your deposit amount, loan term, and credit history rather than advertised headline rates alone.
Are there car finance options that support people with poor credit who want to buy an electric car?
Yes, Carplus offers hire purchase and personal contract purchase finance for people with poor credit. We work with specialist lenders who assess your full circumstances, not just credit scores. Our panel accepts applications with CCJs, IVAs, or defaults, and considers guarantor arrangements. You can finance quality used electric vehicles regardless of credit history.
Is it financially better to buy an electric car?
Electric cars offer lower running costs than petrol and diesel cars. You need to pay less for fuel (£3-£10 per 100 miles vs £12-£18), zero vehicle excise duty, and reduced maintenance as cars have fewer moving parts. Add free entry to clean air zones and cheaper home charging via your electric bill.
Is it worth buying a used electric car?
Yes, used electric vehicles deliver excellent value compared to buying a brand-new electric car. Quality used EVs from major car brands cost £8,000-£25,000 versus £25,000+ for new models. You get the same zero-emission benefits, lower insurance costs, and slower depreciation. Most include remaining battery warranty coverage from reputable manufacturers.
How expensive is an electric car to insure and maintain?
Electric cars tend to be more expensive to insure, averaging £200-£400 more annually than petrol and diesel cars. However, maintenance costs are lower as cars have fewer moving parts - no oil changes, exhaust systems, or clutch replacements. Your electric bill increases for home charging, but overall running costs remain significantly lower.
Do electric cars hold their value?
Used electric vehicles from established car brands like Tesla, BMW, and Hyundai depreciate slower than budget models. Premium EVs retain 50-60% value after three years, similar to petrol and diesel models. Battery degradation concerns affect older models more, but modern EVs with 8-year warranties hold value better than early generations.
What are typical monthly payments for electric cars?
Monthly payments for used electric vehicles range from £180-£450 depending on car price, deposit, loan term, and credit profile. A representative example: financing a £15,000 used EV with £1,500 deposit over 48 months costs approximately £320 monthly. The total amount payable includes interest and varies by individual circumstances and lender rates.
What government help is available when financing an electric car?
The UK government provides a car grant of up to £3,750 on electric cars priced under £37,000. You pay zero vehicle excise duty in the first year and £10 annually thereafter. Government support also covers installing home chargers for eligible properties. These incentives reduce the total purchase cost for an electric car in the UK significantly.
Do electric cars have the same lifespan as petrol or diesel cars?
Electric cars typically last 15-20 years, matching or exceeding petrol and diesel cars. Cars have fewer moving parts, reducing mechanical wear. Most car brands warranty the 60kWh battery for 8-10 years or 100,000 miles. Battery degradation is gradual - modern EVs retain 80%+ capacity after a decade, with other components requiring replacement first.
Are electric cars 100% tax deductible?
Buying a new zero-emission electric car qualifies for 100% first-year capital allowance, letting businesses deduct the full cost from taxable profits. Private buyers don't get tax deductions but benefit from low vehicle excise duty and reduced benefit-in-kind rates. Electric car salary sacrifice schemes offer significant tax savings for employees through pre-tax salary reductions.
