Best electric car finance deals

Hunting for the best electric car finance deals has become a priority for many motorists. More and more drivers are seeing the benefits of an electric car - especially with the range of incentives available to make buying and running an EV more affordable. Plus, the idea of a quiet, relaxing car which can be refuelled as you sleep sounds pretty appealing.

Additionally, if you charge using electricity from renewable sources, the carbon footprint of each mile you drive is tiny. For certain types of motorists - especially those who drive company cars - an electric car can present significant financial savings, too.

To help with this, the government's Electric Car Grant, which can give you up to £3,750 off a new electric car, provided it costs no more than £37,000 to start with and meets certain sustainability criteria, is rolling out and will begin to be reflected in EV prices at dealerships. The government's list of eligible vehicles is updated here.

As demand for battery-powered cars is growing, so too are the number of makes and models available. Given the size demands of packaging a big enough battery under an electric vehicle, combined with their popularity, it's no surprise that the number of electric SUVs to choose from is growing quickly.

We've been busy searching online to find what we think are the best finance deals on electric cars. You may be surprised at how affordable switching to an electric car can be. Plus of course, don't forget about the far cheaper running costs, especially if you switch at an EV specific energy tariff.

See also

• 0% APR car deals
• Best cars for £99 a month
• Best PCP car deals
• Best car leasing deals
• Zero deposit finance deals
• Best car subscriptions
• Nearly new car deals
• Best van finance deals
• New cars with free insurance
• All car finance deals

Best electric car finance deals A-Z

Best finance deals on electric cars

Tesla Model Y

PCP from £349 a month
Deposit from £3,748

The Tesla Model Y was one of the biggest selling cars on the entire planet in 2024, and the UK's best-selling EV by far. That means Elon Musk's electric vehicle brand must be doing something worth considering for so many new Model Ys to find homes. A heavily updated version of the Model Y, featuring a new look inside and out, and retuned suspension, is now available in the UK.

Tesla offers PCP and the ability to buy its cars direct through its website. Prices are subject to change on a regular basis, so it's worth checking the website often and only buying once APR rates and monthly payments drop to affordable levels. At the time of writing, Tesla was offering 0% APR and a £2,000 deposit contribution on 36-month PCP deals.

Tesla Model Y RWD
Price: £44,990 or £349 a month
Annual mileage limit: 10,000
Deposit: £9,488
Monthly payments: 36 x £349 (£12,564)
Optional final payment: £23,288
Total payable: £44,990
APR representative: 0%
PCP agreement length: 36 months
See this deal

Audi Q4 e-tron

PCP from £509 a month
Deposit from £7,625
Audi Q4 e-tron review

Almost 18,000 examples of the Audi Q4 e-tron found homes in the UK in 2024, making it runner-up to the Tesla Model Y as the UK's most popular EV. And it's not hard to see why, thanks to the Q4's well-equipped and spacious interior, usefully long electric range and choice of different powertrains.

If you're looking for a brand-new Q4, Audi has a PCP deal for £509 a month with a decent 10,000 miles per year limit and healthy £7,750 deposit contribution. The deal also includes a choice between a free Ohme home charger worth up to £999, or an extra £500 off the list price and 30,000 free miles of charging over three years if you use an OVO energy tariff. And, if you buy by the end of August, you get an extra £1,500 off. 

Audi Q4 e-tron S Line 40
Price: £49,855 or £509 a month
Annual mileage limit: 10,000
Deposit: £7,625
Monthly payments: 47 x £509 (£23,923)
Optional final payment: £17,560
Total payable: £49,118
APR representative: 6.9%
PCP agreement length: 48 months
See this deal

MG4

PCP from £269 a month
Deposit from £4,630

The MG4 is one of the most popular electric cars in the UK thanks to its value price tag, generous equipment levels and spacious cabin. The MG4 is also surprisingly good to drive, while its electric range of up to 281 miles will be more than adequate for most.

MG offers two PCP deals on the MG4. A 37-month 0% APR deal costs from just £269 a month, but requires a deposit of almost £5,000. A four-year 2.9% APR deal costs from £269 with a £5,259 deposit. MG is also running a promotion equivalent to the government's Electric Car Grant. Opt for the 0% APR deal and you get £1,500 off the list price, while the 2.9% deal includes the same discount plus an extra £1,000 test drive discount if you sign up and bring it with you to the dealer.

MG4 SE NAV MY24 125kW 51kWh Auto
Price: £27,245 or £269 a month
Annual mileage limit: 8,000
Deposit: £4,629.50
Monthly payments: 48 x £269 (£12,912)
Optional final payment: £8,203.50
Total payable: £27,245
APR representative: 0%
PCP agreement length: 49 months
See this deal

Skoda Enyaq

PCP from £473 a month
Deposit from £7,022

The Skoda Enyaq is an excellent electric family car, with plenty of range, lots of standard equipment and room for growing kids and all their assorted paraphernalia. It might not be quite as exciting to drive as something like a Tesla Model Y, which is very quick to accelerate, but the Enyaq is more about being easy to drive and comfortable for all.

The Enyaq and Enyaq Coupe have just been treated to a mid-life update, and both new models are available new from Skoda on PCP. There are two options to choose from, too. There's a 0% APR offer over 24 months, and this starts at £473 a month on a 10,000 miles a year deal and requires a £7,022 deposit. Order before the end of August and you get a £1,000 deposit contribution, too.

The second option is a 6.4% APR deal over 49 months with the same deposit and mileage allowance, but monthly payments start at £367 thanks to a £3,750 deposit contribution.

Skoda Enyaq SE L 60
Price: £39,010 or £473.17 a month
Annual mileage limit: 10,000
Deposit: £7,021.99
Monthly payments: 23 x £473.17 (£10,882.91)
Optional final payment: £20,105.10
Total payable: £39,010
APR representative: 0%
PCP agreement length: 24 months
See this deal

Hyundai Ioniq 5

PCP from £609 a month
Deposit from £0

Hyundai has one of the most striking and comprehensive ranges of electric cars in the UK. Alongside the tiny Inster and Kona Electric, the firm offers the streamlined Ioniq 6, family-focused Ioniq 9 and the actually larger than it looks in pictures Ioniq 5. That size means it features a spacious interior and excellent equipment levels, while a recent update ensures that its design remains fresh and unlike anything else on the road.

Hyundai is currently offering two PCP deals on the Ioniq 5. The offer we're featuring below runs over 36 months, requires zero customer deposit, and includes 0% APR, a £1,000 deposit contribution and £1,500 Hyundai Electric Car Grant that's equivalent to the one the government has introduced but for which the Ioniq 5 is too expensive to qualify.

The second option runs for 49 months and requires a deposit, but you do get a £2,000 deposit contribution plus the £1,500 Grant to drop monthly payments to £469. This deal has 4.9% APR.

Hyundai Ioniq 5 Advance
Price: £38,410 or £608.78 a month
Annual mileage limit: 10,000
Deposit: £0
Monthly payments: 36 x £608.78 (£21,916.08)
Optional final payment: £15,493.75
Total payable: £38,410
APR representative: 0%
PCP agreement length: 37 months
See this deal

What is the government Electric Car Grant?

The UK Electric Car Grant is part of a £650 million fund intended to make buying a brand-new electric car more affordable and encourage people to switch to an EV before new petrol and diesel car sales are phased out in 2030. 

The maximum grant amount is £3,750 off the car's OTR price, although a £1,500 grant is available for models that partially meet the scheme criteria. Carmakers have to apply to add their models to the scheme, and only models that cost £37,000 or less are eligible. 

Applications began on July 16, and the first models to qualify will be announced on August 11. However, carmakers including Cupra, Fiat, Skoda, Leapmotor, GWM, Skywell, Hyundai, Volkswagen and Volvo have all announced equivalent grant discounts so you don't have to wait to get behind the wheel of a shiny new EV at a discounted price.

How much does it cost to run an electric car?

Leasing an electric car should mean rock-bottom running costs, as lease agreements are normally for new or nearly new cars. This means they are less likely to need major repairs and if there are any faults with the car, they should be covered by the warranty provided by the car manufacturer. In addition to this, electric cars should be even less likely to need work compared to a petrol or a diesel vehicle as they have fewer moving parts to wear out.

Furthermore, up until a car is three years old, it does not require an MOT. As many lease deals won’t run longer than 36 months, you can wave goodbye to spending time finding a reputable garage and wondering if they charged you a fair amount.

• How much does it cost to charge an electric car?

One last running cost to mention is road tax, which is most often paid by the organisation a car is leased from. As electric cars are exempt from road tax, though, this cannot really be considered a bonus as it is free anyway.

How do I charge my electric car?

When leasing an electric car it is the responsibility of the driver to charge the vehicle and how this is done is up to them. They could use a three-pin plug as found in all UK houses, but because of the significant amount of electricity required to charge an EV, this isn’t recommended.

The best option is to get a dedicated car charger installed. It is worth shopping around as occasionally lease deals crop up that include a charger or at least a discounted one, or switching your home electricity tariff to an EV-specific one can yield the same result. Failing any deals being available, you will need to organise a company to come and install a charger for you.

For most domestic properties the maximum output for a charging point will be 7kW. Any higher than this and you will likely need to upgrade the power supply to your house, which gets expensive and disruptive. A 7kW charger is plenty for replenishing a battery’s charge overnight, although electric cars with large batteries (at least 75kWh) might struggle to get 100% charged overnight if flat when plugged in.

• Electric car charging stations explained
• Fast charging guide: Electric car charging cables and connectors explained

When driving an electric car, it is a good idea to think about the places you most commonly visit and maximise the charging network available. This is because, in some towns, there are shops, restaurants and leisure centres that can provide free charging. These save you money and handily keep your car topped up throughout the day.

Similarly, if you are going on a longer journey and need to top up the battery, finding a commercial charger with a high power output (such as 50, 75 or 100kW, or even more) cuts down the length of time you will be waiting for range to be added. Not all electric cars can charge at higher rates, though, so be sure to check the specification of the EV you are driving.

There are some great (and free) resources online that can help with finding chargers and planning routes. Zap-Map is one of the most popular, which can be accessed as a website and a smartphone app. A handy feature of Zap-Map is that it will show the type of charger connector (the European standard is called ‘Type 2’ but there are a few other types) available at each charging point and whether or not it is in service. Turning up to a broken charger is very frustrating...

What are the benefits of electric car finance?

Aside from the environmental benefits, lower running costs and lower tax associated with EVs, taking out a PCP deal on an electric car gives you flexibility. For a relatively affordable deposit - often covered at least partially if you have a car to trade-in - and fixed monthly payments - you get to try the EV life for size.

If, at the end of your deal, you're not convinced, you can simply give the car back, or use the equity against a new PCP deal on a car that might better fit your needs. If it turns out the EV is a great fit, a PCP also gives you the option of being able to buy the car outright and continue motoring for many happy miles to come.

What are the downsides of electric car finance?

Wider concerns about running an EV, particularly as your only car, are well documented. But aside from range anxiety and charger drama, many electric drivers report being pleasantly satisfied with the results of making the electric switch.

As new technology, electric vehicles currently cost significantly more than their ICE-powered counterparts. And that means higher upfront costs like initial deposits, and higher monthly payments than a petrol or diesel equivalent. However, some of this cost is clawed back through cheaper running costs, while many EV deals have significant incentives, like large deposit contributions, 0% APR and discounted home chargers to encourage you to plug in. 

Another consideration is early termination of your PCP agreement. This is an issue regardless of how your car is powered, but if the EV life really doesn't suit you, paying to terminate a PCP early can be an expensive business. As ever, it pays to be informed of any and all costs before you sign the deal.