Electric Car Finance

Buying an electric vehicle can sometimes be a puzzling and exciting experience, especially for startups, corporate businesses, and generation Z buyers who are all new to the concept of electric vehicles. The world is becoming more economical and ecological by adopting green technology, and we appreciate that. “Electric vehicles are undoubtedly fast” according to Car Dealer Magazine. “Electric vehicles are responsible for considerably lower emissions over their lifetime than conventional (internal combustion engine) vehicles across Europe as a whole.” according to Carbon Brief.

Carbon emissions are a significant contributor to climate change. Most people are still concerned about the cost of electric vehicles and the financial options of  acquiring an electric vehicle or a hybrid car. As part of our customer service, New Look loans can provide you with all you need to know about electric car finance, electric car PCP and hybrid car finance.

Electric Car Finance

Electric cars have risen in popularity following the UK (United Kingdom) government anticipated ban on new petrol, diesel, and hybrid vehicles by 2030. Electric vehicles are, of course, slightly more expensive than conventional cars, but it is worth financing them for these reasons listed below.

• They are cheap to maintain.
• ICCT calculated that a battery electric car running on UK grid electricity produces 35g of CO2 per km, compared to an average petrol car which emits 211g of CO2 per km. 1 Jan 2022
• Lower tax payable because of government incentives.

Because of the above reasons, there is a massive shift of people from purchasing traditional vehicles to buying electric cars. The motor industries have also increased the production of new electric models as each year ends. This has led to the expansion of new electric car markets as well as used electric car markets. What has remained a mist on people’s minds is how electric car finance works.

Well, there are three options for getting an electric vehicle. You can either buy an EV (Electric Vehicle), lease or finance it. Electrical car financing involves spreading the cost of a new car by using three options: personal contract purchase, leasing or through hire purchase.

Leasing

Leasing an electric car is just like renting. It allows you to enjoy your new car by spreading the rental cost of the vehicle. Most companies will lower rental costs when a business lease the car compared to when leased to an individual. It is of great advantage to lease an electric car instead of buying because of the following reasons:

• “Electric vehicles value depreciates quickly, about 60% in three years if you do 10,000 miles per annum” according to JamJar.com. So, if you want to purchase an electric vehicle and sell it after some years, then get ready to lose more money than you could lose with a petrol- or diesel-powered car.
• EV batteries obey the law of diminishing return, and therefore, they are likely to be less dependable over some years. Some lose their ability to recharge after few years of operation.
• The technology used in Electric vehicles is evolving faster, and therefore, your EV risk quickly being outdated.

Electric Car PCP

Personal Contract Purchase (PCP) is a finance option for customers who want a car but cannot raise the requisite amount to pay for the new car upfront. If you need to buy an electric car on PCP, you will need to pay a deposit and monthly payments for some agreed duration. The interest charged is usually calculated at the beginning and is fixed throughout the length of the agreement. At the end of the agreement, you will have a chance to purchase the vehicle, but you will have to pay additional purchasing costs. The key benefits of using this method are that fixed monthly payments are friendly to your financial situation. You also have a wide range of cars to choose from. You will also have a chance to have full ownership of the vehicle after paying the purchase fee.

Hybrid Car Finance

Hybrid cars are tailor-made to lower your carbon footprint while offering you the opportunity to cover greater mileage. Buying a hybrid car on finance can be the best wallet-friendly way of owning this vehicle. There are more than a million reasons you might want to finance a hybrid car, but it might not be easy to decide the best way of financing that will blend well with your wallet.

To be precise, there are two dominant types of hybrid cars, plug-in hybrid vehicles and self-charging hybrid cars. The difference is that plug-in hybrid cars need to be plugged in to charge, while self-charging hybrid cars will self-charge as you are driving.

The question that may linger most in your mind is, “What hybrid car is the best for your needs and what type of finance is the best?” The best will depend on your personality and preferences but keep in mind that there are some hidden costs you might have to pay. For instance, Toyota Auris is a self-charging car, but it is so unfortunate that you will have to pay road tax when using it. There are two types of hybrid car financing. That is Lease (PCP) and finance (HP). Businesses, individuals, startups can go green with hybrid lease deals with the help of New Look Loans. New Look loans provide you with a fantastic finance option that is fixed to meet your financial status. We work to ensure you have a friendly and affordable monthly repayment plan that will fit your budget, lifestyle, and circumstance.

Disadvantages Of Electric Cars

According to CarsGuide, one of the main disadvantages of electric vehicles is ‘range anxiety’ the fear that your electric vehicle might run out of charge before you find a suitable charging station to recharge your battery.

Electric vehicles tend to cost more money than their combustion engine counterparts. In particular the battery packs. You are required to replace the battery between 3 to 10 years.

The lack of accessible fueling points could be seen as problematic and if you are not lucky enough to own a drive at home, an electric vehicle is a potential non-starter.

It takes longer to refuel an electric vehicle compared to a petrol or diesel engine.