The transition to electric vehicles (EVs) and hybrids isn’t just about new-car sales. Increasingly, financial solutions are emerging to support consumers who prefer more affordable used electrified vehicles, yet want to drive sustainably.
Car finance for a sustainable future
EVs present several challenges when it comes to car finance.
Anybody who follows the car market may be aware of the changes in EV car values which have occurred in recent years, supply shortages, tariffs and improved performance of new models have all lead to some unpredictability in EV values and this has in particular made it difficult for lenders to offer PCP loans which are underpinned by a predicted future value. If you want to understand more about PCP you can check out our article on PCP car finance here.
EV cars are also expected to last longer than Internal Combustion Engine (ICE) cars and so may go through more ownership cycles meaning car finance agreements may need to be adapted to allow for older vehicles, higher mileages and so on.
The good news is that lenders and the industry are proactively exploring solutions for EV car finance. Car Loan First has got a wide lending panel and is able to offer finance for EV cars.
We are also seeing some innovative car finance products for EVs such as Alphera Zero which allows customers to offset carbon emissions on used hybrid or plug in hybrid vehicles.
Boosting Affordability with Green Incentives
🌿 Home EV Chargepoint Grants
– Household scheme: up to 75% off installation, capped at £350.
– Also available for flats, renters, and landlords, with specific landlord‑focused infrastructure grants.
🌿 Workplace Charging Scheme (WCS)
– Businesses, charities & public bodies can claim 75% off up to £350 per socket, with 40 sockets per applicant.
🌿 Congestion‑Charge Exemptions
– EVs avoid London, Birmingham, Bristol congestion and CAZ charges—saving approximately £3,000 per year in London.
– London’s Cleaner Vehicle Discount (CVD) runs until 25 December 2025.
🌿 Salary‑Sacrifice EV Schemes
– Employers offer EVs via pre-tax salary sacrifice, reducing costs by 20–50%, and benefit from tax and NI savings.
– Employees gain access to insurance, maintenance and lower Benefit In Kind tax rates.
– There are some considerations to these schemes, for example schemes may forgo vehicle ownership and may affect pensions, while this article provides information, you should check these schemes suit your personal needs.
Why Sustainable Used-Electric Finance Matters
As the UK strives to become more sustainable; our car usage is an area which allows for significant positive change. While there is a goal to reduce environmental impact, this also needs to be affordable for customers. Cost effective decarbonization is the way to go and used EVs and hybrids will allow a bigger share of the population to move over from traditional vehicles.
Incentives aimed at the used EV market will also make ownership more accessible. There is also a need for improved infrastructure such as charging stations and servicing.
benefits expire in December 2025.
Final Thoughts
Sustainable mobility extends beyond buying new EVs. With creative finance packages like Alphera Zero, combined with public chargepoint grants, congestion charge waivers, and salary‑sacrifice schemes, the UK is building an ecosystem for affordable used‑EV adoption. For finance firms and car buyers alike, it’s a timely opportunity to drive genuine sustainability—both environmental and financial.
Quick Checklist for Prospective Buyers
| Step | Action |
| 1 | Consider a used PHEV/EV with carbon-offset finance (e.g., Alphera Zero). |
| 2 | Check your car finance broker or lender can provide a loan for an electric vehicle |
| 2 | Apply for a £350 home chargepoint grant. |
| 3 | Check workplace participation in Workplace Charge Schemes. |
| 4 | Use salary‑sacrifice via employer, if available. |
| 5 | Monitor London congestion‑charge status before December 2025. |
