Electric car finance

Buying a new or used electric car on finance can be exciting, but with so many options, it can be stressful too. Find out more about electric car finance.

Electric car finance

Buying a new or used electric car on finance can be exciting, but with so many options, it can be stressful too. Find out more about electric car finance.

What is electric car finance?

With the UK’s ban on sales of new petrol, diesel, and hybrid cars set to take effect in 2035, you might be looking to buy an electric car on finance.

Electric car finance is when you borrow money to cover the cost of a new or used electric car. The lender pays the dealership for you, and you’ll make monthly payments until you repay what you’ve borrowed, plus interest.

We offer Conditional Sale (CS) car finance. Unlike other types of finance such as Personal Contract Purchase or Hire Purchase, with CS, there’s no additional payment or fee needed to legally own the car. This means you can keep your new electric car once the finance ends and enjoy more zero-emission driving.

Who is eligible for an electric car on finance?

What is electric car finance?

With the UK’s ban on sales of new petrol, diesel, and hybrid cars set to take effect in 2035, you might be looking to buy an electric car on finance.

Electric car finance is when you borrow money to cover the cost of a new or used electric car. The lender pays the dealership for you, and you’ll make monthly payments until you repay what you’ve borrowed, plus interest.

We offer Conditional Sale (CS) car finance. Unlike other types of finance such as Personal Contract Purchase or Hire Purchase, with CS, there’s no additional payment or fee needed to legally own the car. This means you can keep your new electric car once the finance ends and enjoy more zero-emission driving.

Who is eligible for an electric car on finance?

To finance an electric car, you’ll need:

  • Monthly earnings over £1,000 (after tax)
  • To be aged between 20 and 75
  • A full valid UK driving licence
  • 2 consecutive months of payslips

We can finance electric cars that meet our lending criteria:

  • Priced between £4,000 and £35,000
  • Up to 120,000 miles on the clock
  • No older than 15 years by the end of the agreement
  • We don’t finance cars if their batteries are leased seperately from the manufacturer

To finance an electric car, you’ll need:

  • Monthly earnings over £1,000 (after tax)
  • To be aged between 20 and 75
  • A full valid UK driving licence
  • 2 consecutive months of payslips

We can finance electric cars that meet our lending criteria:

  • Priced between £4,000 and £35,000
  • Up to 120,000 miles on the clock
  • No older than 15 years by the end of the agreement
  • We don’t finance cars if their batteries are leased seperately from the manufacturer

How to finance an electric vehicle (EV)

How to finance an electric vehicle (EV)

One

Get an online quote in under 5 minutes. We use a soft check at the point of application, which won’t impact your credit score and provides an instant decision.

Two

If you’re approved, use our Vehicle Finder to find your dream car. Our friendly experts will be on hand to help with the search, so you can get onto a better road ahead.

Three

We’ll help you with providing any paperwork and signing your agreement. Once your agreement is finalised, we’ll pay the dealership and you can collect your new car!

One

Get an online quote in under 5 minutes. We use a soft check at the point of application, which won’t impact your credit score and provides an instant decision.

Two

If you’re approved, use our Vehicle Finder to find your dream car. Our friendly experts will be on hand to help with the search, so you can get onto a better road ahead.

Three

We’ll help you with providing any paperwork and signing your agreement. Once your agreement is finalised, we’ll pay the dealership and you can collect your new car!

Can I get electric car finance with bad credit?

Can I get electric car finance with bad credit?

If you have bad credit, you might be worried that it stops you from switching to an electric vehicle (EV). Thankfully, that isn’t the case.

We’re one of the UK’s biggest providers of specialist vehicle finance, with over 30 years of experience helping people across the UK onto a better road ahead.

Electric car being charged

We specialise in helping people get bad credit car finance, so we may be able to help you with electric vehicle finance even if:

If you have bad credit, you might be worried that it stops you from switching to an electric vehicle (EV). Thankfully, that isn’t the case.

We’re one of the UK’s biggest providers of specialist vehicle finance, with over 30 years of experience helping people across the UK onto a better road ahead.

We specialise in helping people get bad credit car finance, so we may be able to help you with electric vehicle finance even if:

Electric car being charged

Benefits of owning an electric vehicle

There are a range of benefits to buying an electric car on finance. You can make the switch to zero-emission driving and enjoy the latest technology. However, petrol or diesel cars are often cheaper to buy than electric vehicles, but this is gradually changing as more used electric cars become available.

Benefits of owning an electric vehicle

There are a range of benefits to buying an electric car on finance. You can make the switch to zero-emission driving and enjoy the latest technology. However, petrol or diesel cars are often cheaper to buy than electric vehicles, but this is gradually changing as more used electric cars become available.

Electric cars offer an environmentally friendly way to get around, as they produce zero emissions when driven.

There are fewer mechanical components in an EV compared to a petrol or diesel car. This often results in lower servicing and maintenance costs.

EVs are generally charged at a lower rate than petrol and diesel cars in Clean Air Zones and London’s Ultra-Low Emission Zone (ULEZ).

Depending on the cost of electricity, charging an electric car is often cheaper than fuelling a petrol or diesel car.

Electric cars offer an environmentally friendly way to get around, as they produce zero emissions when driven.

There are fewer mechanical components in an EV compared to a petrol or diesel car. This often results in lower servicing and maintenance costs.

EVs are generally charged at a lower rate than petrol and diesel cars in Clean Air Zones and London’s Ultra-Low Emission Zone (ULEZ).

Depending on the cost of electricity, charging an electric car is often cheaper than fuelling a petrol or diesel car.

Why choose Moneybarn?

Great customer service

We support thousands of people up and down the country each month, even if they’ve been refused elsewhere. Our customers rate us as Excellent on Trustpilot.

Award-winning finance

We continue to win industry awards for our approach to responsible lending, including ‘Vehicle Finance Provider of the Year’ and ‘Sub-Prime Lender of the Year’ for 2023.

Leading specialist lender

As one of the UK’s leading lenders for bad credit, we accept people let down by mainstream lenders, with over 30 years of experience helping people onto a better road ahead.

Why choose Moneybarn?

Great customer service

We support thousands of people up and down the country each month, even if they’ve been refused elsewhere. Our customers rate us as Excellent on Trustpilot.

Award-winning finance

We continue to win industry awards for our approach to responsible lending, including ‘Vehicle Finance Provider of the Year’ and ‘Sub-Prime Lender of the Year’ for 2023.

Leading specialist lender

As one of the UK’s leading lenders for bad credit, we accept people let down by mainstream lenders, with over 30 years of experience helping people onto a better road ahead.

Electric cars we can finance

Electric cars we can finance

If you’re looking to buy a new electric car, we can help. We understand the importance of finding a reliable car, especially when switching from petrol or diesel to an electric vehicle.

We can finance electric vehicles that meet our lending criteria.

Below are some examples of electric cars for sale that we can finance. You can use them to understand which car brands and models are within your budget.

Get inspired for your new EV

According to our EV charging report, some of the cheapest electric cars to charge include:

If you are still unsure which EV you’d like to finance, don’t worry. Our team would be happy to help you find the right one.

We use a soft credit check at the point of application, which doesn’t affect your credit score. We only use a hard check when you decide to enter into an agreement with us.

It takes less than 5 minutes to get a quote online. If you’re approved, we’ll show you how much you could borrow and what your agreement might look like.

If you’re looking to buy a new electric car, we can help. We understand the importance of finding a reliable car, especially when switching from petrol or diesel to an electric vehicle.

We can finance electric vehicles that meet our lending criteria.

To the right are some examples of electric cars for sale that we can finance. You can use them to understand which car brands and models are within your budget.

According to our EV charging report, some of the cheapest electric cars to charge include:

If you are still unsure which EV you’d like to finance, don’t worry. Our team would be happy to help you find the right one.

We use a soft credit check at the point of application, which doesn’t affect your credit score. We only use a hard check when you decide to enter into an agreement with us.

It takes less than 5 minutes to get a quote online. If you’re approved, we’ll show you how much you could borrow and what your agreement might look like.

Get inspired for your new EV

What is the best way to finance an electric car?

The most popular ways to finance an electric car include PCP, HP, PCH, and CS. Which one is the best for you depends on several factors including whether you want to legally own the EV once the agreement ends.

We offer CS finance, designed to help people who know they want to legally own the car. Once you make your final payment, we’ll transfer legal ownership of the EV to you, so you can continue on the journey of zero emissions driving even after your finance ends.

To help you make an informed decision, the table below shows some of the differences between the types of finance.

Ways of buying an electric car Owning the car Using the car
Conditional Sale (CS) Once you make the final payment, you'll legally own the car You have full use of the car and are responsible for things like servicing and maintenance
Personal Contract Purchase (PCP) At the end of the agreement, you must make the 'balloon payment' in order to legally own the car There is a permitted mileage limit and charges may apply if you exceed that
Hire Purchase (HP) At the end of the agreement you will legally own the car if you pay the 'option to purchase' fee You have full use of the car and must maintain and service it
Leasing (PCH) You will never legally own the car, and must return it at the end of the lease agreement There is usually a mileage limit and limits on wear and tear that you may incur charges for

For more details about the pros and cons of each type of finance, check out our guide which explains how financing a car works.

What is the best way to finance an electric car?

The most popular ways to finance an electric car include PCP, HP, PCH, and CS. Which one is the best for you depends on several factors including whether you want to legally own the EV once the agreement ends.

We offer CS finance, designed to help people who know they want to legally own the car. Once you make your final payment, we’ll transfer legal ownership of the EV to you, so you can continue on the journey of zero emissions driving even after your finance ends.

To help you make an informed decision, the table below shows some of the differences between the types of finance.

Ways of buying an electric car Owning the car Using the car
Conditional Sale (CS) Once you make the final payment, you'll legally own the car You have full use of the car and are responsible for things like servicing and maintenance
Personal Contract Purchase (PCP) At the end of the agreement, you must make the 'balloon payment' in order to legally own the car There is a permitted mileage limit and charges may apply if you exceed that
Hire Purchase (HP) At the end of the agreement you will legally own the car if you pay the 'option to purchase' fee You have full use of the car and must maintain and service it
Leasing (PCH) You will never legally own the car, and must return it at the end of the lease agreement There is usually a mileage limit and limits on wear and tear that you may incur charges for

For more details about the pros and cons of each type of finance, check out our guide which explains how financing a car works.

Useful EV & hybrid guides

Useful EV & hybrid guides

New car or used car?

If you’re looking to upgrade, you might be considering a brand new or nearly-new car. Find out more about the differences between buying new and used in our guide.

Hybrid and electric cars

Stuck between hybrid and electric? Our guide explains the differences between EVs and hybrids so you can decide which is best for you.

Hybrid and electric vans

If you need something bigger than an electric car, you might be considering a hybrid or electric van. Find out more in our guide.

New car or used car?

If you’re looking to upgrade, you might be considering a brand new or nearly-new car. Find out more about the differences between buying new and used in our guide.

Hybrid and electric cars

Stuck between hybrid and electric? Our guide explains the differences between EVs and hybrids so you can decide which is best for you.

Hybrid and electric vans

If you need something bigger than an electric car, you might be considering a hybrid or electric van. Find out more in our guide.

FAQs when buying an electric car on finance

There are many different factors that determine whether an electric car will last as long as or longer than a petrol or diesel equivalent. Many manufacturers offer warranties on the battery, as they can otherwise be expensive to replace.

Over time, the battery in an electric car becomes less effective with use. However, an EV battery is expected to last around 10-20 years, so it is likely that some other part of the EV would need repair before then (according to EDF).

It’s important to remember that the battery is not the only part of an electric car that might need replacing, and an electric car needs to be serviced just as often as any other car.

The main factors that affect the range include the make and model of the car you buy, how you drive it, and the conditions in which it is driven. Using the heating and air conditioning also drains the battery, reducing the range you can drive.

Octopus Energy found that, for 2009-2019 registered EVs, a range of around 100 miles was achievable. But with the latest technology, a brand-new electric car often boasts a range of over 400 miles.

It depends on the size of the car’s battery, the speed of the charger, the ambient temperature, and how much charge is left in the battery.

Charging an electric car can take anywhere from 30 minutes to overnight. For a typical EV with a 60kWh battery, it takes around 8 hours to charge from empty to full at a 7kW charging point. This is according to research by Pod Point.

You can either charge your car at home or use a public charging station. To charge your car at home safely and legally, you can have a charging station fitted. Public charging stations can be found at supermarkets and motorway services.

If you’re not sure, try Zap Map to find nearby charging points.

There may be grants available to help with the cost of home charger installation. For the latest information, check GOV.UK.

According to Admiral, electric cars are, on average, 5% more expensive to insure than the UK average for all car types. This could be because certain parts, like the battery, can be expensive to replace if damaged. Also, repairs may be pricier as only technicians trained in electric vehicles can work on them.

Maintaining and servicing an electric vehicle can be cheaper because they have fewer moving parts that can break. However, one of the biggest potential costs with an EV is the battery, although many manufacturers offer warranties for them.

There are many electric cars that cost less than £15 to fully charge at home. However, the cost of charging depends on how much charge your battery has left, the condition of your battery, whether you’re using a public or home charger, and the cost of electricity.

Our study on EV charging costs found some of the cheapest car brands and models to charge at home. These include the Fiat 500e, Mini Electric, Mazda MX-30, Volkswagen e-Up!, Nissan Leaf, and Hyundai Kona Electric (39 kWh model).

A brand-new, zero-emission vehicle, such as an electric car, qualifies for the 100% first-year allowance. This means you may be able to deduct the cost of your new EV from your self-employed or business profits before you pay tax. This is according to GOV.UK.

If you choose to buy an EV on finance, the car finance payments may be tax-deductible, depending on your circumstances.

For further information, you should consult HMRC or a qualified tax professional.

There are several grants available to help with the cost of buying an electric car in the UK. These include the Electric Vehicle Chargepoint Grant (for renters or flat owners) and the Plug-In Car Grant.

Used electric cars tend to be cheaper than brand-new models. Buying a used EV means that while you won’t get the latest technology, you’ll still benefit from driving with zero emissions and no charges for entering Clean Air Zones.

The main downside to buying a used EV is the anxiety around battery life. Although it might feel uncertain buying a used EV because you don’t know if the car and the battery have been kept in good condition, know that the vast majority of batteries will outlast the life of the vehicle and never need to be replaced. This is according to a study by Geotab on over 6,000 EVs spanning many car brands and models.

FAQs when buying an electric car on finance

There are many different factors that determine whether an electric car will last as long as or longer than a petrol or diesel equivalent. Many manufacturers offer warranties on the battery, as they can otherwise be expensive to replace.

Over time, the battery in an electric car becomes less effective with use. However, an EV battery is expected to last around 10-20 years, so it is likely that some other part of the EV would need repair before then (according to EDF).

It’s important to remember that the battery is not the only part of an electric car that might need replacing, and an electric car needs to be serviced just as often as any other car.

The main factors that affect the range include the make and model of the car you buy, how you drive it, and the conditions in which it is driven. Using the heating and air conditioning also drains the battery, reducing the range you can drive.

Octopus Energy found that, for 2009-2019 registered EVs, a range of around 100 miles was achievable. But with the latest technology, a brand-new electric car often boasts a range of over 400 miles.

It depends on the size of the car’s battery, the speed of the charger, the ambient temperature, and how much charge is left in the battery.

Charging an electric car can take anywhere from 30 minutes to overnight. For a typical EV with a 60kWh battery, it takes around 8 hours to charge from empty to full at a 7kW charging point. This is according to research by Pod Point.

You can either charge your car at home or use a public charging station. To charge your car at home safely and legally, you can have a charging station fitted. Public charging stations can be found at supermarkets and motorway services.

If you’re not sure, try Zap Map to find nearby charging points.

There may be grants available to help with the cost of home charger installation. For the latest information, check GOV.UK.

According to Admiral, electric cars are, on average, 5% more expensive to insure than the UK average for all car types. This could be because certain parts, like the battery, can be expensive to replace if damaged. Also, repairs may be pricier as only technicians trained in electric vehicles can work on them.

Maintaining and servicing an electric vehicle can be cheaper because they have fewer moving parts that can break. However, one of the biggest potential costs with an EV is the battery, although many manufacturers offer warranties for them.

There are many electric cars that cost less than £15 to fully charge at home. However, the cost of charging depends on how much charge your battery has left, the condition of your battery, whether you’re using a public or home charger, and the cost of electricity.

Our study on EV charging costs found some of the cheapest car brands and models to charge at home. These include the Fiat 500e, Mini Electric, Mazda MX-30, Volkswagen e-Up!, Nissan Leaf, and Hyundai Kona Electric (39 kWh model).

A brand-new, zero-emission vehicle, such as an electric car, qualifies for the 100% first-year allowance. This means you may be able to deduct the cost of your new EV from your self-employed or business profits before you pay tax. This is according to GOV.UK.

If you choose to buy an EV on finance, the car finance payments may be tax-deductible, depending on your circumstances.

For further information, you should consult HMRC or a qualified tax professional.

There are several grants available to help with the cost of buying an electric car in the UK. These include the Electric Vehicle Chargepoint Grant (for renters or flat owners) and the Plug-In Car Grant.

Used electric cars tend to be cheaper than brand-new models. Buying a used EV means that while you won’t get the latest technology, you’ll still benefit from driving with zero emissions and no charges for entering Clean Air Zones.

The main downside to buying a used EV is the anxiety around battery life. Although it might feel uncertain buying a used EV because you don’t know if the car and the battery have been kept in good condition, know that the vast majority of batteries will outlast the life of the vehicle and never need to be replaced. This is according to a study by Geotab on over 6,000 EVs spanning many car brands and models.

Hybrid car finance

Looking to do some low-emission driving but not sure about the switch to electric? Find out more about financing a hybrid.

Refused car finance?

We specialise in helping people turned down by mainstream lenders. Find out the most common reasons for refusal in our guide.

Our application process

Buying a new car on finance can be exciting, so make sure you understand how it works before applying.