Electric vehicles are the future – the UK government has already proposed to ban the sale of petrol and diesel cars by 2035 in order to reduce emissions and reliance on fossil fuels.
Already, EVs are much cheaper to run due to electricity being cheaper than petrol (by as much as 80% in some areas) and less repairs due to less mechanical parts. Unfortunately, electric cars tend to cost more upfront, which puts many buyers off who are looking for a budget-friendly family runaround. The good news is that there are ways to make EVs more affordable. Below are just a few ways to save money on an electric family car.
Look into used EVs
Brand new EVs can often cost over £40k, but many of these cars lose as much 40% of their value in the first year and as much as 60% of their value by the third year. By considering EVs that are three years or older, you can save a lot of money upfront. There are used electric car dealerships that you can buy from where you may be protected by a warranty. Alternatively, use the likes of Facebook Marketplace and Gumtree to connect with private sellers who may offer cheaper prices.
Ask about salary sacrifice schemes
Some employers are willing to set up salary sacrifice schemes to help pay for electric vehicles. This involves paying for car lease or car finance using pre-tax earnings. Just be wary that if you quit your job, you’ll have to return your car to your employer. Salary sacrifices are sometimes combined with pay rises as a way to avoid entering higher tax brackets. There are specialist dealerships that can help you explore these schemes.
Explore lease and PCP deals
Leasing an electric car can often be cheaper per month than buying a car on finance. This is particularly the case with brands like Tesla that depreciate less. The downside of leasing is that you don’t own the car – you can’t sell it, can’t modify it and you have to give it back at the end of the lease term. PCP finance is an alternative solution that works a bit like a lease, but you have the option of buying the car at the end of the term by paying the remaining value in one lump sum called a ‘balloon payment’. The likes of these Hyundai Kona PCP deals often come with much lower monthly payments than a traditional car finance agreement.
Purchase the right models
Not all electric car models cost the same. In fact, there are a few brand new EVs that you can buy for less than £20k including the Dacia Spring, BYD Dolphin and Leapmotor T03. When it comes to affordable used electric family cars, consider models like the Nissan Leaf and Kia e-Niro. You will pay a lot more for Teslas and BMWs because they are designed as more luxury options – this does mean cheaper lease and PCP deals, however if you want to own an EV outright on a tight budget, you might want to avoid these cars.
