Taking out a loan or finance is an important decision and shouldn’t be taken lightly.

However, there are plenty of advantages of finance options, like paying in smaller instalments and improving your credit score, but it can be tricky to know where to start.

Read on as we break down the main things you should know about finance for electric vehicles (EVs).

Types of finance for electric vehicles

Personal contract purchase

A personal contract purchase (PCP) spreads the cost of finance across monthly payments where you’ll pay the depreciation value of the car.

At the end of your agreement you won’t own the car, but you’ll have the choice to purchase your car outright or hand it over and opt for something newer.

Hire purchase

Hire purchase (HP) contracts include a deposit and monthly instalments, agreed between yourself and the lender.

At the end of the set period, you’ll own the vehicle for yourself, meaning you can continue to drive or sell it.

Student car finance

Student car finance is an excellent way to access the car of your dreams while you’re still studying. Opting for student finance increases your chances of being accepted for a credit agreement, regardless of your credit score.

With flexible terms and both HP and PCP available, you can find an agreement to suit your requirements and tweak them if needed.

Joint car finance

Joint car finance allows you to enter a finance arrangement with a family member or significant other, enabling you to share a vehicle and split the costs between you.

This means joint liability and is an outstanding way to boost the credit score of both parties.

Benefits of finance for electric vehicles

Increase your credit score

By getting an electric car on finance, you can demonstrate your ability to manage credit responsibly by returning payments in full and on time.

This will impact your credit score positively and increase your chances of getting approved for loans in the future, such as contracts and mortgages.

Manageable payments

Electric vehicles are an excellent way to reduce your carbon footprint as you aren’t producing harmful emissions.

They also tend to offer a better driving experience with smoother, more powerful and responsive features.

However, electric vehicles tend to have more expensive upfront costs due to their state-of-the-art technology and progressive batteries.

Using finance makes the benefits of electric vehicles more accessible, splitting payments into smaller, more manageable payments. When you sit down with a lender, you can discuss your income and lifestyle to find an agreement that works for you.

How to improve your credit score

Increasing your credit score can sometimes seem complicated, but there are a couple of easy ways to alleviate your rating. You can benefit from completing the following:

1. Registering on the electoral roll

2. Making payments on time

3. Using credit responsibly (e.g. a credit card)

4. Keeping your oldest bank account open

5. Refraining from opening new bank accounts too frequently

Where to shop

Ready to discover specialist car finance for electric vehicles?

Concept Car Credit offers car finance for EVs in Manchester. They’re committed to delivering a high standard of customer service and outstanding vehicles, no matter your needs. 

Apply for your dream car and experience the benefits of finance for electric vehicles today.

by Gavin Johnson

Gavin Johnson is a dynamic entrepreneur and the visionary force behind EV Cable Shop. With a passion for environmental sustainability and automobiles.

Gavin has created a brand in the market by providing high-quality, eco-friendly charging solutions for the growing electric vehicle (EV) landscape. His commitment to innovation and customer satisfaction has propelled EV Cable Shop to the forefront of the EV charging industry.