Electric Car Finance

13 Posted: 13th Oct 2022
Electric Car Finance
  • Find out the best way to finance an electric car

    Are you looking to buy an electric car on finance? We understand that finance can be confusing, especially when exploring the world of EVs. However, there’s a variety of electric car finance available, including flexible options such as PCP, HP and leasing. But, how do you know which is right for you? 

    Below, our guide delves into the details of electric car finance. Alternatively, if you have any further questions, contact our team who’ll be happy to help.

    Get in touch



  • Electric car PCP

    EV car finance
  • What is electric car PCP?

    Electric car Personal Contract Purchase (PCP) is a popular funding option for new and used electric cars.


  • What does PCP stand for?

    PCP stands for Personal Contract Purchase:

    Personal – The agreement is for individual users rather than businesses

    Contract – You agree to a contract over a fixed term, for example, between 24 and 48 months

    Purchase – There’s an option to purchase the vehicle at the end of the agreement


  • How does EV PCP work?

    Are you looking to buy an electric car on finance? We understand that finance can be confusing, especially when exploring the world of EVs. However, there’s a variety of electric car finance available, including flexible options such as PCP, HP and leasing. But, how do you know which is right for you?

    Below, our guide delves into the details of electric car finance. Alternatively, if you have any further questions, contact our team who’ll be happy to help.


  • How often can you change your EV?

    Most PCP finance deals last between 24 and 48 months. So, this gives you a flexible loan period to switch more easily. You can drive the latest electric vehicles every couple of years.


  • Who is EV PCP suited to?

    If you’re looking to drive the latest models at a lower monthly cost, EV PCP is a great option. This finance also offers a way to upgrade more regularly with low & locked monthly payments


  • The main benefits of EV PCP

    The benefits of EV Personal Contract Purchase finance are:

    Low monthly instalments – Payments are fixed and lower compared to other finance options.

    Flexible terms – Agreements typically last between 2 and 48 months.

    End of lease options – Choose whether to pay the balloon payment, trade-in your car or hand it back.

    Regular upgrades – Upgrade your vehicle every few years with short-term loan options.

    Protected against depreciation & inflation – No need to worry about any surprises charges or interest fluctuations.


  • Electric car HP

    Finance electric cars
  • What is EV HP?

    Hire Purchase (HP) for electric cars is like a traditional loan where you pay fixed instalments for the car’s full value.


  • What does HP stand for?

    HP stands for Hire Purchase:

    Hire – You don’t own hiring the vehicle until it’s paid for in full.

    Purchase – At the end of the agreement, you own the car.


  • How does EV HP work?

    You pay a deposit which is flexible according to your budget. This is taken off the car’s value, and the remaining amount is split over the loan term with interest added.

    At the end of the contract, you pay a nominal ‘option to purchase’ fee to own the car.


  • How often can you change your EV?

    You can change your car at the end of the loan term, which is typically between one and five years.


  • Who is EV HP suited to?

    HP EV finance is a top choice for drivers wanting to own a car longer than the loan period. There’s also no mileage limit, and you own the vehicle outright on the last payment.


  • EV HP benefits

    The main benefits of EV Hire Purchase finance are:

    Flexible terms – Loan periods range from one to five years, depending on your budget.

    Low deposit – Around 10% of the car’s value is required to secure an EV, but you can put down less or more.

    Fixed payments and interest – Your payments are locked in so you always know what you’re paying.

    No mileage cap – Drive as far as you want with no worry of excess mile charges.

    Small option to purchase fee – Pay a nominal fee between £100-£200, and the car is yours! 

    Low-credit score friendly – Finance is secured against the car, so most drivers should be able to secure funds.



  • Electric car leasing

    Electric Car Finance
  • What is electric car leasing?

    Electric car leasing gives you all the benefits of driving an EV for a monthly fee with regular upgrades. EV leasing offers pure convenience.


  • How does electric car leasing work?

    Electric car leasing is just like renting a car but for a longer period. Leasing terms are typically between 24 and 48 months. There’s an initial cost, usually the equivalent of six monthly payments. However, this is not a deposit and it forms part of the leasing contract.


  • How often can you change your car?

    You can change your car at the end of the leasing period, for example, every two to four years.


  • Who is electric car leasing suited to?

    Electric car leasing is a great alternative to other finance options if you don’t want the hassle of owning a car outright. Monthly payments are slightly higher than PCP or HP loans. But you get road tax included in the cost and you can regularly upgrade cars. You can also include servicing in your monthly costs too.


  • Benefits of electric car leasing

    The main benefits of electric car leasing are: 

    Flexible terms – Choose between two to four-year contracts to suit your needs.

    No deposit – The initial payment forms part of your lease agreement.

    Fixed monthly payments – Instalments are locked in, so there are no surprise charges.

    Easy to upgrade – Just hand the car back and select a new model, no hassles.

    Include servicing – with the option to add servicing as part of your monthly payments, you have one less thing to worry about.


  • Benefits of driving an electric car

    Alongside the variety of affordable ways to finance an electric car, there are numerous benefits to actually driving one. These include:

    Zero emission driving – No tailpipe emissions means cleaner air for the community.

    Cheaper to run – It’s typically cheaper to recharge at home than fill up at the pumps.

    More affordable to maintain – With fewer moving parts, an EV costs less to maintain.

    No road tax – All-electric cars are exempt from paying road tax, as VED is worked out based on tailpipe emissions.

    Exemptions - Drive through Clean Air Zones, ULEZ, LEZ and Congestion Charges for free.


  • Would an electric car suit my lifestyle?

    Electric Car Finance

    Owning an EV is easier than you might think. However, below are a few common questions that answer whether this type of car is suited to your lifestyle.


  • Do you have regular access to a charging point at home, if not at work or on the street?

    While it’s handy to have a charge point at home, other options such as on-street charging, public charging and workplace charge points make topping up easy.


  • Can you get a wallbox installed?

    Most EVs come with a standard wall socket. But the most effective and faster way to charge is via a wallbox. Getting one installed is easier than you think, and you may be eligible for the Electric Vehicle Home Charge Scheme.

    Learn more about EV grants & incentives


  • Will you have time to charge your EV?

    Depending on the car model and charge point, EVs can take between 30 minutes and several hours to recharge. If you install a wallbox, charging overnight is a great option. This also allows you to schedule charges around your lifestyle.

    But you if won’t have time to charge your electric car at home or on the go, you have a few other options.


  • How about a hybrid?

    Hybrids are a great alternative if you’re not ready to transition to an all-electric car just yet due to charging restrictions.


    Plug-in hybrid cars

    A plug-in hybrid utilises the power of an electric motor alongside an efficient combustion engine. These models are more affordable than full EVs and convenient for people driving long distances. This type of hybrid typically offers around 40 miles of pure electric driving.

    Just plug it in to recharge and you’re good to go. This type of hybrid car is ideal if you have semi-regular access to a charging point.


    Hybrid cars

    Hybrid vehicles, also known as full or self-charging hybrids, don’t need to be plugged in to get the benefits of electric power. The motor boosts the engine efficiency and provides an all-electric range at slow speeds and short distances.

    Regenerative braking works in the background to recharge the battery, with most hybrid cars offering electric-only driving too.


    Mild-hybrid cars

    Mild hybrid cars are the most affordable option for drivers looking to dip their toe in the EV market. The small electric motor is self-charging via regenerative braking, and this supports the engine for better fuel economy.

    This type of hybrid powertrain doesn’t allow for electric-only driving, but instead assists the engine and powers electrical systems for added efficiency.


  • Why get an electric car on finance through Pentagon

    Making the switch to an electric vehicle can be daunting. However, our EV experts at Pentagon make the process hassle-free and convenient. So, you can choose the best EV finance for your new car.

    We offer a wide range of funding options, including PCP, HP and PCH. Plus, our SAF-approved specialists guide you through each option to get the best deal for your budget. 

    Our panel of accredited lenders offer:

    Fixed rates – Your monthly payments and interest rate are fixed for the duration of your agreement. So you always know what you’re paying.

    Low or no deposit – Secure your dream car with a low deposit of £99. In addition, some lenders don’t require a deposit at all. 

    Easy application – Just a few details gets the ball rolling on your new EV purchase.



If you have a query relating to Discretionary Commission Agreements please email customer.care@pentagon-group.co.uk However, please note that if your query related to a purchase more that 7 years ago we will no longer hold any details due to our data retention policy.

Representative Finance Example
APR Representative 13.9%
Cash Price £5,995
Deposit £0
1st Monthly Payment £136.55
58 Monthly Payment £136.55
Final Monthly Payment £146.55
Amount of Credit £5,995
Total Amount Payable £8,203.00
Total Charge for Credit £2,198
Duration 60 Months

Please Wait

This won't take a moment...