4 FAQs About Financing Options for e-Vehicles
The automobile industry is one of the key global industries that needs to make changes toward being more environmentally friendly. One way the industry is taking steps towards an eco-friendlier and more sustainable world is through e-vehicles. EVs or electric vehicles are powered by electrical batteries that you can charge at home or in specially designated areas.
While e-vehicles lower the carbon footprint and boost air quality in urban areas, most people are yet to adopt their use. One reason for this is the expenses related to purchasing e-vehicles.
How Much Does an e-Vehicle Cost?
e-Vehicles are generally costlier when compared to average cars. Their exact cost will vary depending on what brand or vehicle make you go for.
For all their high purchase cost, e-vehicles are cheaper to operate compared to cars running on fossil fuels. As such, they make a more sustainable option in the long run for their environmental and low maintenance cost
Can I Purchase e-Vehicles for Less?
Yes, you can find affordable ways to purchase an e-vehicle. Despite their high sale price, government incentives and financial loans can help you buy an e-vehicle at an affordable price. The global objective towards living greener means e-vehicle manufacturers and governments are creating financial plans to help adopt e-vehicles. Some of these plans include cash or tax deductions, public loans or grants, and offers such as free charging.
To Lease or to Buy an e-Vehicle
As most manufacturers offer financial plans to buy e-vehicles, you may find yourself with a choice to buy or lease an e-vehicle. Leasing your e-vehicle may be the best option as the industry for a few reasons:
- e-Vehicles are bound to change in quality due to technological upgrades every few years. As such e-vehicles models may last a couple of years before they are out of fashion
- In case you look to sell your e-vehicle in some years, refrain from buying as e-vehicle drops in value every few years.
- Future e-vehicles will travel more miles on the same charge due to advancements
Can I Purchase an e-Vehicle With PCP or HP?
One common way to buy a vehicle is through a personal contract purchase or PCP. PCPs also provide a great financial option to purchase an e-vehicle. With a personal contract purchase, you get to use an e-vehicle over three to five years and decide on buying it after that period.
PCPs require you to pay a deposit and for the depreciation of the vehicle as you use it. After the agreed period, you may choose to return the car, purchase it for its resale value or exchange it for another e-vehicle.
In case you ultimately seek to purchase an e-vehicle, you can opt for the HP or hire purchase option. Buying an e-vehicle through HP means you get to pay for the vehicle in installments over an agreed period. However, the option requires you to pay with additional interest rates and best suits those who want to own an e-vehicle.