Affording an Electric Car: Is Finance the Answer?

If you've found yourself wondering, 'How can I afford an electric car?', you're in the right place. Electric vehicles are becoming more and more popular in the present day, particularly with the current threat of climate change looming.

At cartime, we're a trusted car sales company based in the North West of England, offering a wide range of affordable cars for all our customers. We pride ourselves on our knowledge of the car industry, so we've created this blog to help you discover all you need to know about driving an electric vehicle.

If you'd like to find out what your ideal electric car finance deal could look like, please enquire today, and we'll have you test-driving your perfect car in no time.

How can I afford an electric car? Your finance options explained

Electric vehicles can be rather expensive to purchase outright, so choosing finance could be the ideal solution. But if you've never bought a car with finance before, it can be hard to know where to start. Which option you go for will depend on your own personal preferences and circumstances, so it's important to think carefully before committing.

One thing you may not be aware of is that you can purchase used vehicles on finance. A used car will undoubtedly be cheaper than going for a new car, making your finance deal much more affordable. 

Essentially, you have two finance options available to you:

• Hire purchase (HP) finance

• Personal contract purchase (PCP) finance

With HP deals, you essentially hire your car until the finance agreement ends. You may pay a deposit upfront, followed by regular monthly payments until your contract expires. You will then own your car. 

PCP agreements are slightly different. When you buy a car with a PCP finance deal, you'll pay a deposit upfront (usually less than with HP deals), as well as a set of monthly installments until the contract ends. The monthly repayments tend to be cheaper than those associated with hire purchase deals, but if you want to keep your car at the end of your term, you'll need to pay a balloon payment. Otherwise, you can just hand your vehicle back and take out a new agreement on another car, if you so wish.

Financing vs leasing vs an outright purchase

There are many benefits to financing an electric vehicle, but how does it compare to leasing or purchasing a car? Each option has its own merits and benefits, so again, it's another situation that will largely depend on your personal circumstances at the time of purchase.

With leasing, you rent your chosen vehicle for a fixed period of time, usually with lower monthly payments when compared to financing. Leasing also offers a great deal of flexibility in terms of newer models and lower maintenance costs for modern drivers. Whilst this aspect may be preferable to people on a budget, you never have the chance to own your vehicle - you may also face additional mileage and wear-and-tear restrictions.

Of course, when you buy a car outright, you'll naturally own the vehicle from the date of purchase. However, newer vehicles tend to depreciate in value quickly and you may find yourself unable to afford your ideal car if you have to pay the full cost at the point of purchase. In cases like this, finance could be a perfect alternative, allowing you to drive a new car by paying affordable monthly payments instead.

Ultimately, your choice depends on factors like your budget, your personal preferences and your predicted future financial situation. Whilst we love affordable car finance at cartime, we also offer cash purchase options - get in touch to find out which solution is best for your needs.

Electric cars: What’s the fuss about?

If you're an eagle-eyed petrolhead, you've likely noticed the increase in electric cars over the past few years, with 2024 sales set to reach 17 million units. Whilst diesel and petrol cars are still popular, it's expected that electric vehicles will take over from traditional ICE (internal combustion engine) vehicles in the near future.

So, what's all the fuss about? Let's find out...

The sustainable option

The main reason for the rise of electric cars is the threat of climate change. Many nations around the world are making an effort to curb the use of petrol and diesel cars in the future, setting a date to ban the manufacture of ICE cars. For example, in Britain, the sale of new diesel and petrol cars will be banned from 2030 - you'll still be able to purchase second-hand ICE cars however. 

Put simply: Electric vehicles are the future of the car industry. If you're environmentally minded, driving an electric car is the only real option, as opposed to unreliable public transport networks across the UK. 

The use of petrol and diesel cars leads to a high amount of CO2 being released into the atmosphere every year, which is thought to contribute to the current climate emergency. However, electric cars do not release any emissions when driving - they also reduce pollution emitted when braking, which is another environmental benefit to driving an electric car.

The future of the car industry

At cartime, we believe that electric vehicles are the future of the car industry. This is partly due to the previously mentioned ban on new ICE cars looming in 2030, which will make purchasing a non-electric vehicle harder - particularly if you prefer to drive new cars. The industry is slowly transforming before our eyes, with manufacturers expanding their electric vehicle ranges, giving modern drivers more choice over their cars.

However, you’ll still be able to purchase used petrol and diesel vehicles through cartime after the 2030 ban, so if you’d prefer an ICE alternative, there’s nothing to worry about.

When electric cars first emerged on the car market, they were unreliable for many motorists, due to their slow charging times and low range. However, in recent years, technology has advanced rapidly, improving charge times and range, as well as lowering battery prices. Finding an adequate charging point used to be difficult, but the infrastructure has been rapidly expanded, with many fast charging stations now installed across the UK.

Of course, one of the main concerns when driving a new vehicle is the driving experience. Luckily, this is another area in which electric cars take centre stage. Electric motors tend to be much smoother to drive than ICE vehicles, as they deliver instant torque when driving. Modern electric vehicles also have automatic gearboxes, making the process of driving much easier. 

Electric vehicles really are the future of the car industry, and it seems that they're here to stay.

Cheaper running costs

Another key benefit of driving an electric car is that they're typically cheaper to run than their petrol and diesel equivalents. 

As concerns about climate change grow, governments worldwide are incentivising the use of electric cars, which could make driving one much more cost-effective. For example, some low-emission vehicles are available with a plug-in grant from the government, enabling more people to purchase them. Many workplaces have now introduced salary sacrifice schemes that involve cheaper finance deals and the free installation of home charging points, adding another cost benefit to financing an electric car.

The cost advantages don't stop there though. Whilst you will need to pay for electricity to charge your car, it's generally much cheaper than paying for petrol or diesel fuel. Electric motors are naturally more efficient to run than their ICE counterparts, which translates into lower overall energy consumption and reduced operating costs over the lifetime of your vehicle.

As you can see, financing could be the best way to afford an electric car, depending on your circumstances. If you’d like to discuss our new and used electric car finance deals in greater detail, we’ll be happy to help - just make an enquiry with our experienced team today.