Financing Used Electric Cars: What UK Drivers Should Know
Buying a used electric car is a practical way to save money and reduce emissions. But financing one isn’t the same as financing a petrol or diesel car.
From battery ownership to loan types, there are key details you need to check before making a decision. If you’re thinking about financing a used EV, keep reading to avoid costly mistakes.
Understand The Total Cost Of Ownership
While the price of a used EV is affordable, it’s important to factor in extra costs. These include charging equipment, insurance, servicing, and potentially, a separate battery lease. Some early electric cars were sold with battery leasing arrangements, meaning the car’s price doesn’t include the battery. That monthly fee needs to be added to your calculations.
Always check the battery health. A degraded battery can reduce your range and affect resale value. That’s why it’s important to ask for a battery health certificate or inspection from a qualified technician.
How PCP Car Finance Works With Used EVs
Personal Contract Purchase (PCP) is often used to spread the cost of buying a car. However, it’s important to understand how pcp car finance works with used electric vehicles.
Monthly payments may be lower, but there’s usually a large final payment if you want to keep the car. Since predicting the future value of an EV can be tricky, lenders may offer shorter terms or ask for a higher deposit.
Check Eligibility For EV Incentives
While most grants focus on new electric cars, some local councils and schemes still offer support for second-hand EVs. You may also qualify for cheaper road tax or access to low-emission zones.
Even if you’re buying used, ask the seller whether any warranty or support packages are still active. Some models come with battery warranties that last eight years or longer, which can save you money in the future.
Comparing Loans And Lease Options
Some dealerships offer hire purchase (HP), which spreads the cost with fixed payments and ends in ownership. Others may suggest PCP or leasing, depending on your needs. When comparing, don’t just focus on the rate. Look at:
- Deposit required
- Monthly cost
- Total payable
- Balloon payment (if any)
Used EVs often have higher APRs than new cars, so it’s important to run the numbers using a finance calculator. Check if early settlement fees apply in case you want to pay off the car sooner.
Make Informed Decisions With Confidence
Financing a used electric car is different from buying a petrol model. You’re not just paying for the car, but investing in a different way of driving. Know what’s included in the price, ask about battery ownership, and get clear terms before signing anything.
With a bit of homework, you can drive away in a reliable used EV without overpaying. Compare lenders, check the small print, and don’t be afraid to ask questions. A good finance deal is clear, fair, and right for your needs.
