Registrations of electric vehicles have skyrocketed in recent years, mainly driven by businesses transitioning to electric fleets. However, for many private individuals, the cost of an EV remains a barrier. Still, financing an electric car as a private buyer is now easier than ever. In this article, we’ll explain how you can do it.
EVs are becoming more affordable
When EVs first entered the market, they were very expensive. This was largely due to the new technology and the high production costs of batteries. Electric batteries contain valuable materials such as cobalt, nickel, and lithium, which are not only costly to produce but also finite. As a result, these costs drove up the price of EVs. However, technological advancements have significantly reduced battery costs. Combined with the growing demand for EVs, this has made prices increasingly accessible. Today, you can buy an electric car for as little as €20,000, a significant drop compared to prices just a few years ago. And the good news is: the more people switch to electric vehicles, the more prices are likely to decrease.
Comparison with traditional cars
Although the purchase price of an electric car is often higher than that of a comparable petrol or diesel vehicle, the total cost of ownership (TCO) is lower in many cases:
- Maintenance costs: EVs have fewer moving parts, making maintenance costs on average 35% lower (according to German Institut Für Automobilwirtschaft) than for fuel cars. No oil changes or expensive exhaust parts are needed, for example..
- Energy costs: Energy costs for electric driving are significantly lower than those for petrol or diesel. Charging at home costs on average between €0.23 and €0.30 per kWh, depending on your energy supplier. If we translate this into the cost per 100 kilometres, the difference becomes even clearer. With an electric car you pay around €3 to €5 per 100 kilometres, while for a petrol car this is around €12 on average.
Average price of 2nd-hand EVs has fallen
Another way to make the switch to electric driving financially viable is to buy a used EV. The prices of used electric vehicles have fallen sharply recently.
In 2023, the average asking price for a used EV on Autoscout24 was still 51,125 euros, but in 2024, that price has dropped to 40,507 euros, representing a drop of no less than 20%! This offers individuals the opportunity to buy a quality electric car at a much lower price.
The interest rate is lower for EVs
Not only the government is encouraging the switch to electric driving, banks are also offering benefits to individuals looking to buy an EV. In fact, many banks offer a lower interest rate for a loan on an electric car.
For example, BNP Paribas Fortis has cut the interest rate for EVs to 3.79%, while the rate for traditional petrol or diesel cars remains at 4.59%. KBC has also cut interest rates for both new and used electric vehicles.
In addition, car manufacturers often offer the option of taking out a loan through their own bank. This makes it possible to finance the purchase of an EV directly from the dealer, making it even easier for individuals to buy an electric car.
Leasing as a flexible solution for individuals
Another attractive option for individuals is leasing. This makes it possible to drive an electric car without paying the full purchase price. Moreover, leasing allows you to try out a vehicle for a certain period of time, without being stuck for the long term.
Financial leasing
With financial leasing, you take responsibility for the cost of the car, including the repayment of the purchase price, interest and additional costs. The advantage of this is that once the contract ends, you often have the option to take over the car for a sum of money. This means you can end up owning the car.
Operating leases
In operational leasing for an electric car, you lease the car for a predetermined period, say 2-3 years. Instead of paying the full purchase price of the car, you pay a monthly lease amount for the use of the car. The leasing company retains ownership of the car, meaning they remain responsible for maintenance and insurance and so on. At the end of the lease, you simply return the car and have the option to lease a new car.
Private leasing
With private leasing, you rent an EV for a certain period of time for a monthly amount. This amount covers depreciation of the car as well as other costs such as insurance, maintenance, and roadside assistance. The leasing company retains ownership of the car, and at the end of the lease period, you simply return the car. So you have no option to buy the car at the end of the contract, as with financial leasing.
It is more flexible than buying a car, but you are bound by the lease contract and cannot sell the car yourself.
Smart charging solutions for your electric car
Charging your electric car should, of course, be easy and affordable. As an individual, a charging station at home is often the best choice. After all, public charging stations are more expensive and not always available. In addition, as an EV driver, you can save a lot by charging smartly.
Charging your electric car at home is not only more economical, but also more practical. Private individuals pay only 6% VAT on home charging, while public charging stations are taxed at 21% VAT. Moreover, you can charge your car at night, so you leave the house every day with a full battery.
By using energy tariffs that vary throughout the day, you can not only schedule your charging at the cheapest hours, but also significantly reduce your energy bill. With a smart charging station, you charge your electric car when electricity rates are lowest, such as at night or during off-peak hours. This is not only advantageous for your wallet, but also contributes to more sustainable energy consumption.
With the Easily Charged app from Pluginvest makes this process even easier. You can effortlessly link this free app to your home charging station, giving you full control over your charging sessions. Set charging schedules to suit your daily routine or let the app charge automatically at the most convenient times. Moreover, the app lets you track your energy consumption in real-time, adjust charging preferences and even benefit from your own solar energy if you have solar panels.