Is VW discontinuing the Golf – and why?

Blue VW Golf

It’s official – VW are not planning another combustion engine Golf. In April of 2023, Brand Chief of VW Thomas Schaefer confirmed that the legendary Golf model is no more (in a combustion engine model, at least).

But what’s behind this shift, given the fact that the Golf was once Europe’s most popular car?

Why is VW discontinuing the Golf?

Currently, the Golf Mark (MK)8 model is currently in production, and is VW’s first model to feature an e-TSI engine with mild-hybrid technology. One more series of updates is expected next year, but beyond that, the MK9 Golf will be fully electric.

As such, if you’ve always wanted to own a VW Golf, now is the time to secure a car loan quote online and get behind the wheel.

The Golf’s DNA has always been about affordability, enjoyment and a (very) respectable driving experience. The hope is that this character will translate into the all-electric MK9, which is anticipated for market release by 2026 or 2027.

This move by VW signals an end to the much-loved combustion engine Golf. Sales of the VW Golf reached their peak in the UK in 2002, when 85,100 new registrations were made. Since then, however, sales have declined, with a number of factors responsible.

VW are leaders in terms of their electrification goals. By 2030, the German firm wants 55% of sales in North America, 50% of global sales, and 80% of sales in Europe to be fully electric – a rise from the initial target of 70% electrification first announced in 2021. The launch of ten new all-electric models by 2026 marks the seriousness with which VW are taking these promises.

These figures reflect the company’s increasing prioritisation of the electric vehicle market, as well as their alignment with the EU’s policy to ban the sale of all non-zero emission vehicles by 2035. A continued line of combustion engine Golfs would be inconsistent with this wider brand strategy, as well as shifting economic and consumer climates and priorities.

Beyond the increased consumer demand for electric vehicles, however, there’s also the exorbitant rise in production costs for combustion engine-based models. More stringent Euro 7 emission regulations demand more complex exhaust systems, and the electric vehicle market is always improving. Although EVs are currently more expensive to manufacture, the pendulum is shifting, with EVs likely to become more profitable for manufacturers in the long run. In the meantime, petrol and diesel alternatives are only rising in cost on the consumer side as a result of increased production expense.

To be clear, the Golf isn’t disappearing entirely – Schaefer specified that a fully-electric future model will bear the brand name, so Golf enthusiasts needn’t panic. That said, this model isn’t coming out anytime soon – the projection is for a 2028 release date.

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There’s no doubt about it – the VW Golf is a classic. If you’re looking to purchase a new MK8 model, or are after any of the excellent older models, check out your car finance eligibility and more with My Car Credit.

Rates from 9.9% APR. Representative APR 12.4%

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Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

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What is the release date of the Volkswagen ID 2?

Volkswagen ID-2

Volkswagen have long been at the forefront of electric motoring, and the Volkswagen ID 2 looks set to further establish that reputation.

In 2021, the ill-fated ID.Life was launched at the Munich Motor Show, with the aims of making this model an affordable EV sitting below the ID.3. However, the challenges of manufacturing an economical electric vehicle proved too vast, with VW COO Thomas Schäfer abandoning the concept within the first few days as chief brand manager.

Enter the Volkswagen ID 2, with a release date of 2025. It’s being positioned as a competitor to other affordable electric vehicles like the Peugeot e-208 and the Vauxhall Corsa Electric. Despite the two year wait for the ID 2, Volkswagen have confirmed certain technical and design aspects for the vehicle. Read on to find out more…

What can we expect from the Volkswagen ID 2?

Efficiency and affordability are the key pillars for the ID 2, which is designed as ‘an homage to the Beetle, Golf and Polo’. The car is set to have a range of up to 280 miles, all for the affordable price tag of £22,000.

Much like the VW ID.3, the ID 2 is built on the principle of the company’s ‘Modular Electric Drive Matrix’ (MEB), a project designed to deliver smaller, economical electric vehicles by shifting the vehicular layout, design and power.

Price

Where the ID.Life concept first promised an EV priced below €22,000 (or £17,500), this price has since crept up somewhat for the new VW ID 2 to €25,000 (£22,000).

That said, the car still looks to be one of the cheapest electric cars on the market, undercutting rivals like the Renault Zoe E-Tech and Fiat 500 Electric.

Design

At 4,050mm long, 1812mm wide, and 1530mm high, the ID 2 is slightly smaller than the enduringly popular Polo – but the two could very easily be mistaken in looks. No doubt this is a deliberate design choice, given that the ID 2 will be pitched to mainstream motorists (it’s notably less futuristic in its design than the canned ID.Life).

The car’s small size doesn’t sacrifice practicality. In fact, Volkswagen themselves emphasise that the ID 2 will be as spacious as a Golf but as affordable as a Polo. The boot can carry up to 1330 litres of luggage when the rear seats are dropped down, or 440 litres with them in use. The front passenger seat also folds down to provide a 2.20 metre load area.

The interior design is clean. A 10.9-inch digital instrument panel combines with a 12.9-inch infotainment system. Unlike the ID.3, however, there are a number of manual buttons and switches in place, including for volume control and the climate control system. The touch sliders on the steering wheel have also been replaced by rotating thumbwheels and four buttons for maximum control. The ID.3 has been repeatedly criticised for its overly responsive touch-sensitive setup, so the return of physical control systems is very welcome.

The gear selector has also moved from the ID.3’s dash-integrated rocker switch to a stalk mounted on the steering column. There’s also a manual dial controller between the two front seats that allows the driver to switch between drive modes.

Performance

Efficiency is the central focus for the Volkswagen ID 2. However, it’s still nippy enough, with 223bhp and an acceleration of up to 62mph in less than 7.0 seconds. 280 miles is the advertised range, with a DC rapid charger topping the vehicle up from 10 to 80% battery in just 20 minutes. The battery pack will come in two sizes of 38kWh and 56kWh, with these figures most likely reflecting the larger pack’s performance and power capacity.

Finance your next electric vehicle with My Car Credit

Electric vehicles are a growing market and a vital part of the UK government’s Net Zero Strategy. If you’re looking to make the shift to an electric car, it might be time to use a car loan approval calculator. Alternatively, if you simply have questions around car finance, you can get in contact with one of our friendly team members by emailing enquiries@mycarcredit.co.uk.

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Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

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Why New Car Registrations Are Growing in the UK

Man looking at buying a new car in a dealership

Recent data from the Society of Motor Manufacturers and Traders (SMMT) has reported the fourth consecutive month of increased new car registrations in the UK, with a rise of 23.5%. This marks the strongest growth rate for the month of November since 2019.

What’s driving this rise in new car registrations, and what might it mean for both the UK new car sales market and car buyers more broadly?

What are the figures for UK new car registrations?

Despite the global motor industry’s struggle with supply chain issues, the UK’s auto market shows growth in new car registrations. This demonstrates its general resilience as well as a tentative increase in consumer demand.

Electric vehicles (EVs) continue to drive the rise in UK new car registrations, with registrations of battery EVs rising by 35.2%. This number accounts for more than one in five new cars in the month of November. It’s also the largest monthly share of the new car market held to date by EVs, at 20.5%.

Registration of plug-in hybrids (PHEVs) accounts for more than one in four new registrations, but nonetheless fell over the same period by 5.7%. Meanwhile, hybrids rose by 66.9% to comprise 11.2% total of the market. This reflects a move by fleet operators looking for emissions reductions and greater fleet flexibility.

Petrol registrations also expanded by 15% to make up 40% of the market, a notable fact given the UK’s commitment to net zero. Registrations by large fleets also grew by 45.4% year on year, with business registrations virtually doubling (though still constituting a small market share). Demand from private buyers also demonstrated a small expansion of 2.7%.

What might this mean for the UK new car sales market?

This growth in new car registrations indicates a tentative recovery for the UK market, but car sales still remain around 9% below equivalent pre-pandemic levels, even with this growth.

The growth in market share by EVs does indicate a rising preference for non-fossil fuel vehicles. However, the market share of new car registrations held by petrol cars remains almost double that of EVs. As such, Mike Hawes – CEO of SMMT – has urged the government to further invest in EV incentive schemes and build more electric charging infrastructure ahead of consumer need. This aims to incite more consumers to adopt greener vehicles and ensure that the country will meet its net zero targets.

Further recovery of the UK’s auto industry is anticipated in 2023, with current projections suggesting a 15.4% rise in market growth. However, with the cost-of-living crisis and concurrent rise in energy prices, there are still reasons to be wary of premature conclusions regarding the market’s stability. As consumers face higher costs for charging electric vehicles, there is a risk that this may cause the market to stagnate with a drop in demand for EVs. Given that EVs are driving the current rise in new car registrations, this drop would impact the market’s overall growth.

How might this affect car buyers?

It’s difficult to make any clear conclusions as to how this growth in new car registrations might impact car buyers. Certainly, the demand for EVs and hybrid cars is only likely to increase, backed by government commitments towards net zero.

The UK government has promised an investment of £12 billion towards a net zero target by 2030, and reaffirmed their commitment towards transitioning to 100% zero emission cars and vans in the wake of COP26. The roadmap for achieving this transition includes steps such as ending the sale of new petrol and diesel engine cars, with a complete ban in 2030, and ensuring that all new cars and vans are zero emission by 2035. There’s also greater investment (specifically a commitment of £5 billion) to infrastructure, manufacturing and R&D for EVs.

However, EVs remain more expensive at initial purchase, which – in combination with the aforementioned rise to cost-of-living – may make consumers more resistant to purchasing brand new electric motors.

How to finance a new electric vehicle

For drivers looking for a way to reduce their carbon footprint and upgrade their car at the same time, opting for an EV or hybrid is an ideal choice. However, it can be a costly move, which is where car finance comes in.

If you’re looking for an affordable, accessible way to purchase an EV, you can use our car loan calculator to see the kinds of finance agreement you may be eligible for. Alternatively, email one of our team at enquiries@mycarcredit.co.uk.

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Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

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Types of Tesla Models: Which Car is Right for Me?

Tesla on street parking

With sleek silhouettes, luxurious interiors, next-gen technology and a sultry electric purr, there’s no mistaking a Tesla. While there are many different types of Tesla models on British roads, all share the same prestige and eco-friendly reputation.

The company made global headlines in 2009 with the launch of the all-electric Roadster sports car powered by a lithium-ion battery. It was followed by the more family-friendly Model S sedan in 2012, which received widespread praise for its impressive range and acceleration power. Next came the spacious Model X SUV in 2015, a futuristic crossover that pushed the boundaries of EV design and performance.

Today, Tesla drivers are spoiled for choice. British motorists can buy new or second-hand, which significantly expands the types of Tesla models available. To help you decide, we’ve put together a roundup of the latest models, as well as some not yet launched models to keep an eye on.

A quick intro to Tesla

If you’re in the market for a Tesla, you probably already know quite a bit about the company. But just in case, let’s take a moment to get up to speed. The company is based in California and manufacturers electric vehicles (EVs). Elon Musk is founder and CEO of the company and is no stranger to publicity. The eccentric entrepreneur doesn’t just dabble in EVs. He’s also the architect behind SpaceX, an aerospace manufacturer attempting to revolutionise the sector and make commercial space travel a reality. Musk has made waves for his support of cryptocurrency Dogecoin and his unusual baby name choices.

Controversies aside, there’s no denying Musk has earned enormous respect in the EV sector. Teslas are coveted around the world and the UK is no exception.

Teslas on British roads

Tesla enjoyed record sales in the UK in 2021 and played a pivotal role in helping the country meet an EV market share milestone. The latest new car registration data from the Society of Motor Manufacturers and Traders (SMMT) reveals that for the first time, EVs accounted for 10% of sales in 2021. This represents an impressive jump from the 6.6% recorded in 2020.

Tesla was a major contributor, with the Model 3 topping the chart as the best-selling EV in Britain in 2021. According to the SMMT, 34,783 of the vehicles were sold. The model drastically outsold the Kia e-Niro, which was the second most popular EV purchased in 2021. Just over 12,000 units were delivered.

It’s not just the EV market the Model 3 is dominating. The wildly popular Tesla model was also the second most purchased vehicle in the UK overall in 2021. It was trumped only by the Vauxhall Corsa, which was purchased by almost 41,000 motorists.

Types of Tesla models: Which is right for me?

Currently, British motorists can choose from four different types of Tesla models. We take a closer look at each below:

Tesla Model S

Range: 396 miles

0-60 mph: 1.99 seconds

Top speed: 200mph

Peak power: 1020hp

Starting price: £91,980 

If you’re looking for speed, the Model S boasts the fastest acceleration of any vehicle in the Tesla family. The latest Plaid version is equipped with tri-motor propulsion technology and offers incredible performance. The model brings state-of-the-art battery architecture to the table, as well as all-wheel drive (AWD) handling. The silhouette is clean and low lying, taking cues from luxury sports cars like Jaguars. Overall, this is definitely one of the most luxurious types of Tesla models. 

Tesla Model 3

Range: 374 miles

0-60 mph: 3.1 seconds

Starting price: £45,990

In a nutshell, the Tesla Model 3 is an affordable and toned-down version of the Model S. The accessible price point, combined with the practical four-door sedan design, has helped to establish it as one of the most popular types of Tesla models. The model is equipped with Autopilot, Tesla’s signature driver assistance software, designed to enhance safety. For a cost, you can upgrade to self-driving technology.

Tesla Model X

Range: 329 miles

0-60 mph: 3.8 seconds

Starting price: £98,980

Tesla answered calls for an SUV with the Model X. With space for seven passengers, it’s one of the largest types of Tesla models. It combines the generous dimensions of an SUV with the luxurious features of the Model S. Think an enormous interior touchscreen, futuristic Falcon Wing doors and, of course, Autopilot functionality.

Tesla Model Y

Range: 318 miles

0-60mph: 4.8 seconds

Starting price: £54,990

Looking for a Tesla that toes the line between the Model 3 and Model X? The Model Y steps up with a clever compact SUV and an affordable price tag. With loads of space and great range and performance, it’s no surprise this is one of the best types of Tesla models for families.

Cybertruck

The Cybertruck hasn’t been launched yet but like all Tesla models, there’s plenty of hype surrounding the newest member of the family. The model is the company’s foray into the pick-up truck market, which will undoubtedly make waves in the US. With a solid stainless-steel body, sharp angular lines and armoured glass windows, it’s not for the faint of heart. The first models are expected to hit US roads in late 2023, with the UK launch subject to demand. Basically, you’ll need to sit tight if you want to get your hands on one of these types of Tesla models.

Roadster

After huge success with other models, Tesla has refocussed its attention back to the Roadster. The goal is to launch the fastest EV in the world, and if the rumours of 0-60mph acceleration in 1.9 seconds and a top speed of more than 250mph are true, the company is on track.

Car financing for your Tesla

Whether you’re in the market for a second-hand Model S or a gleaming new Model X with all the bells and whistles, we can help you get behind the wheel of your dream Tesla.

Use our finance calculator to get a car loan quote and join the Tesla family. Or, if you’d like to learn more about what we offer, send us an email or speak to our friendly team on 01246 458 810.

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£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Electric Car: Lease vs Buy – Which is Best?

Electric car at a charging point

An increasing number of Brits are embracing the EV revolution, with some choosing to lease and others opting to buy. Both options come with a unique set of pros and cons, which we explore in more detail below. But first, let’s dive a little deeper into the EV uptake in the UK.

EVs gaining popularity across the UK

The uptake of EVs is on the rise in the UK, with the latest statistics from the Department for Transport (DfT) confirming sales of battery-powered cars hit record highs in 2021. In the North, EV registration numbers jumped to almost 75,000 last year. This represents a leap of more than 50% compared to the previous year. Nationwide, the DfT estimates there are more than a quarter of a million EVs driven by British motorists.

To cope with demand, the government has pledged to install 300,000 public EV charge points across the country. This is almost five times more than the number of fuel pumps currently available to motorists. Transport Secretary Grant Shapps says it’s part of a plan to establish the UK as a global leader in EV uptake. He says supporting EVs will not only help motorists save money on fuel but will play a critical role in helping the country meet its net-zero targets.

Now we know more about how much momentum EVs have gained in the UK, let’s take a closer look at some different ways to get behind the wheel of these eco-friendly vehicles. Which is best – an electric car lease vs buying an EV? Or is there another option that combines the best of both?

The pros of leasing an EV

  • Maintenance and servicing costs are included in your monthly repayments.
  • Depreciation isn’t a concern, as you never take on ownership of the vehicle.
  • Similarly, you won’t need to worry about selling the car when you’re ready to upgrade.
  • At the end of the lease, you’re free to upgrade to a newer model. This makes leasing an appealing option for many motorists. If you love the butter-soft feel of new leather seats or enjoy the latest tech, sound systems and driver assist features, leasing can be a great solution.
  • If you use your EV for business, leasing can offer some tax write-offs.

The cons of leasing an EV

  • Mileage is generally restricted, which means you’ll need to keep tabs on how far you drive. If you’re planning to use your EV for road trips, long daily commutes or as a full-time business car, leasing can be restrictive.
  • Leasing agreements can also be restrictive when it comes to wear and tear. If you use your car to transport kids, pets or anything else that can make a mess, leasing may not be the best option.
  • You may still be liable to cover serious damage to the vehicle, which means leasing isn’t a 100% risk-free option.
  • You never acquire ownership of the EV, which restricts how you can use the vehicle. For example, you may not be allowed to take the car out of the country, which rules out a weekend away in France or a ferry to Ireland.
  • Charges may be applicable if you want to end the lease before the agreed term. This can make leasing a more expensive option in the long run.

The pros of buying an EV outright

  • You acquire full ownership of the vehicle the moment the transaction is approved. This gives you complete freedom over mileage, wear and tear, international destinations and other factors that can be restricted with leasing.
  • Buying an EV outright is the cheapest option as you don’t take on debt. This eliminates extra costs like interest, as well as fees and charges.

The cons of buying an EV outright

  • You’ll need to cover the total cost of the vehicle outright. In the UK, the cheapest electric cars like the Smart EQ Fortwo Coupe will set you back at least £17,000. Bestsellers like the Kia Niro EV are priced at almost £35,000 for new models, while the wildly popular Tesla Model 3 will set you back almost £45,000. Most Brits simply don’t have the cash to purchase a new EV outright.

EV Finance – The Best of Both Worlds

As we’ve explored, there are pros and cons to both leasing an EV and purchasing outright. This is where financing can be a clever option. Purchasing an EV on finance balances the two options and offers the best of both worlds – you take on full ownership of the car, with the freedom to spread the payment over a longer period.

Depending on the type of financing agreement you choose, there may still be limits and restrictions. However, in general you’ll enjoy far more freedom than on a lease contract. EV technology has improved in leaps and bounds over the past few years, with models like the Tesla Model S offering incredible range of more than 400 miles on a single charge. For family-friendly EV models like the Hyundai IONIQ 5, expect a top driving range of 315 miles.

These are impressive stats and have reimagined the functionality of EVs. Want to skip the forecourt, slash your carbon footprint and cover serious distance? Use our quick and easy calculator to get a car finance quote and unlock a budget for your EV purchase. 

Finance for Second-Hand EVs

If you’re thinking about purchasing a second-hand EV, financing can help stretch your budget further and minimise the financial stress of buying a car. Unlike leasing agreements, which are generally reserved for only the newest models, car finance can be used to purchase a pre-loved EV. This can be a great way to get behind the wheel of an EV while keeping your monthly repayments as low as possible.

Join the EV revolution

Thinking of financing an EV? You’re not alone. The latest data from the Finance & Leasing Association confirms more than 90% of new vehicles are financed. In the UK, a personal contract purchase (PCP) is the most popular car finance option. Contracts generally span for three to five years and come with attractive interest rates when you shop around for the right provider.

PCP usually starts with an initial deposit, with the remaining cost spread over monthly repayments. At the end of the loan, you’ll have the option to purchase the car outright with a balloon payment. This payment tops up the total amount you’ve already paid to match the Guaranteed Minimum Future Value (GMFV) of the EV, which was agreed on at the start of the loan.

Give us a call today on 01246 458 810 or email us at enquiries@mycarcredit.co.uk to find out more about PCP loans and other car finance options. 

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Why Drivers Are Making the Switch to an Electric Car

Open charge point after making the switch to an electric car

In October 2021, the Office for National Statistics reported that over half of younger drivers are looking to switch to an electric car within the next decade. That’s a serious swathe of motorists jumping ship from petrol and diesel vehicles.

But why are drivers making the switch to an electric car, and what benefits could it bring you to follow suit?

The benefits of switching to an electric car

Better for the environment

EVs are playing a major role in the transition to net zero. EVs are all-round better for the environment than their petrol or diesel counterparts – even factoring in the amount of energy required for both their initial production and ongoing running.

For a start, they don’t produce any carbon dioxide, so reduce air pollution. In fact, one electric car can save around 1.5 million grams of CO2 from entering the atmosphere.

Plus, because EVs don’t use diesel fuel, they don’t produce nitrogen oxides, which are harmful particulates that have been linked to poor health indicators, including respiratory illnesses and heart disease.

Minimal noise pollution

As well as reducing air pollution, EVs help with noise pollution, as they’re significantly quieter than petrol or diesel vehicles.

This makes a difference to traffic-dense urban areas, but the relative quietness of EVs also makes them more enjoyable to drive, too. The most you’ll hear from an EV is the slight whirring of its electric motor – you’ll no longer be competing with the rumbles and revs of an engine.

Getting ahead of the petrol ban

From 2030, the sale of new vehicles powered by either petrol or diesel will be banned. You’ll still be able to buy second-hand petrol or diesel vehicles, and there’s wiggle room for hybrid cars too, but otherwise new non-EVS are being phased out in the UK.

Increasing numbers of drivers are making the switch to an electric car in order to get a jump on the petrol ban before it becomes law.

Range

Concerns about the short range of EVs have often put potential buyers off. However, as EVs have begun to take hold of the market, the industry has made leaps and bounds in terms of improving their range.

If you’re considering making the switch to an electric car, it would be worth evaluating your driving habits and needs. If you’re not regularly making long, cumbersome motorway journeys, then your weekly car travel is likely more than within the range of an EV.

Improved charging

As more individuals opt to make the switch to an electric car, both private and public changing infrastructure is rapidly improving. From domestic wall boxes to public charging spots, the options are both getting better and appearing with greater frequency. In fact, some supermarkets offer free charging hubs, and businesses are moving in similar ways to offer employees the chance to charge EVs as they work.

Motorists who opt for Teslas can also benefit from the company’s Supercharger network, which is one of the best charging networks for EVs around.

The UK Government’s Rapid Charging Fund is designed to meet the ever-increasing consumer demand for EV charge points. By 2035, the plan is for around 6,000 high powered charge points to be readily available across the country’s motorways and major A roads.

Low running costs

Admittedly, the initial purchase of an EV can be expensive. However, once you’ve made the switch to an electric car, there are far lower running costs involved.

There’s inevitably variation between the make and model of vehicle, as well as between electricity providers, but a full charge of an EV only costs a few pounds, which is significantly less than it costs to fill a tank with fuel. Given the fluctuation in fuel prices, this is one of the key benefits to EVs at the present time.

There are also various incentives for switching to an EV, from benefitting from a plug-in grant through to tax exemption for company cars.

Plus, EVs are both cheaper and easier to maintain compared to gas-powered vehicles, as they have fewer parts and generally suffer less wear and tear.

Find out how we can help you switch to an electric car

If you’re ready to make the switch to an EV, our helpful team can get you a no-obligation electric car loan quote in minutes. We’re easy to reach on 01246 458 810, or you can email us at enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Which Electric Car Should I Buy?

man using his phone to research which electric car to buy

With high inflation outstripping wage and benefit increases, the UK is going through a serious cost of living crisis. As a result, people are looking to cut costs in every area of their lives – and driving is no exception.

Economical cars can help you do that, saving you on fuel or even road tax over time. While it might seem like a small amount, every penny and pound will count as we all feel the squeeze over the coming months and years.

Keep reading as we look at 8 of the most economical cars that can make driving more affordable.

Most economical electric cars

First and foremost, electric vehicles account for many of the most economical cars on the market. That’s because they’re exempt from road tax thanks to zero emissions, cheaper to run because of fewer moving parts, and cheaper to power with electricity costing less than diesel or petrol.

On the flipside, they’re obviously more expensive to buy. That’s where a car loan finance calculator can help, showing you how the cost can be spread. To make things even more economical, here are some of the cheapest models available…

Fiat 500 Action

Priced at around £21,000 brand new, the Fiat 500 Action is one of the cheapest electric cars available. That’s partly down to its smaller 24kWh battery (compared to 42 kWh on previous models). As a result, the range is a modest 118 miles, making it ideal for urban commutes, short trips and general day-to-day use as long as you have a home charger.

Vauxhall Corsa-e

If you’re looking for something that can go a little further, the Vauxhall Corsa-e is a good option. The supermini’s official range is 222 miles, with prices starting around £25,000 brand new. It’s nice and lightweight so the charge won’t be used up unnecessarily. Naturally, with both of these cars, there’s a lot of money to be saved going for a used, older model.

Most economical hybrid cars

If you’re not ready to be plugging in just yet, or maybe you live in a remote area where chargers aren’t readily available, hybrids offer a good alternative. They use regenerative braking to generate electricity while driving, meaning you can supplement fuel from the pump without any extra work.

Toyota Yaris (and Yaris Cross)

Toyota is leading the way when it comes to hybrid efficiency. Both its Yaris 1.5 Hybrid and Yaris Cross 1.5 Hybrid offer around 60mpg on average.

The standard Yaris is smaller and cheaper to buy, making it the most economical hybrid car that’s ideal for individuals, couples or small families. As a small SUV, the Yaris Cross provides all that, plus a little extra space and the sought-after SUV styling – albeit at a little extra cost.

Elsewhere, the Toyota Prius is another top contender. While it doesn’t quite match the Yaris for fuel-efficiency, it’s been around for much longer, meaning there are a greater choice of older, used vehicles at a cheaper price.

Most economical diesel cars

While cars that are powered solely by fuel burning can’t quite match the efficiency of electric and hybrid models, they’re still some of the most economical cars, thanks to their lower price tags. Of the two fuels, diesel is known for its better fuel economy – making the next two cars a pretty good option overall…

Peugeot 208

With a 1.5-litre BlueHDi diesel engine, the Peugeot 208 achieves around 70mpg. Despite being a relatively small car, its five-door design makes it easy enough for rear passengers to get in and out. Its 311 litres of boot space makes it similar to other small cars, with the option to fold down rear seats for a 1,100 litre total.

Vauxhall Corsa

A second mention for the much-loved Vauxhall Corsa – this time for its 1.5 Turbo D model rather than its electric counterpart. It’s almost a carbon copy of the Peugeot 208 with the tiniest difference in mpg and boot space. That said, it does have a more responsive drive, meaning you can go economical without feeling it on every corner.

Most economical petrol cars

Out of all the fuel options, petrol is typically the least efficient – but that doesn’t necessarily mean it’s not economical. There are plenty of petrol cars to choose from with small engines, which makes them cheaper to buy and run. By choosing a smaller petrol car, you can still get from A to B at a relatively low cost.

Peugeot 108

First on sale in 2014, the Peugeot 108 is the quintessential economical car. It has an official mpg of just under 59mpg, thanks to a modest 1-litre engine and small, lightweight design. That does pose some issues for practicality, with the car and its 180-litre boot more suited to people travelling alone or as a pair. However, if you’re looking to cut costs, it’s hard to go better than this reliable city car.

Citroen C1

Like our top diesel contenders, we have another case of two similar cars matching each other stride for stride. The Citroen C1 is another economical car powered by petrol, with the same mpg as Peugeot’s city car – though it does come with a slightly bigger boot.

Keep your car economical

With the cost of fuel at an all-time high, not to mention everything else rising in price, it’s never been more important to have a car that’s economical to run. Invariably, that means you’re better off with newer models that are more fuel-efficient.

With My Car Credit, you can make your purchase as economical as your up-to-date car. We compare finance from our established network of lenders, saving you time while ensuring you get an affordable deal that spreads the cost of your next car.

If you have any questions about our process, don’t hesitate to contact our team on enquiries@mycarcredit.co.uk and we’ll get back to you as soon as we can.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Electric Car FAQs – Where to Charge?

Electric car logo on road
Electric Car FAQs – Where to Charge? If you’re thinking about switching to an electric car, “where to charge” is one of the most common concerns. After all, you can’t drive an electric vehicle that’s not powered up.

Thankfully, infrastructure has improved vastly over the past decade. Nowadays, there’s a long list of options for choosing where to charge your electric car. Read on as we discuss each of them with their pros and cons.

Where to charge your electric car

At a fuel or service station

We’ll start with the most obvious – the place all drivers go for their petrol and diesel. Service stations and fuel stations offer the fastest way to charge an electric car. That’s because most of them are equipped with rapid or even ultra-rapid chargers providing 43+kW of power.

These chargers have DC connectors, meaning they convert power before feeding it into your car’s battery for faster charging. As a result, they can typically charge up to 80% within 30 minutes. That means you don’t have to wait around or hold up the queue when you’re “filling up”, so to speak.

One downside, compared to the options we’ll go on to discuss, is that this rapid-charging service comes at a premium. As well as the cost of electricity, you’ll be paying a little more for every kW of energy you use at a fuel or service station.

At home

Even with rapid or ultra-rapid charging, it’s not ideal having to go out and wait for 30 minutes every time you need to power up your car. Where better to charge an electric car than at your own home?

It’s no surprise that at-home charging is becoming more and more popular as people switch to electric. To be clear, we’re not talking about a standard 3-pin plug socket. While they can be used for emergencies, they only provide around 3kW of power. That means they can take anywhere between 15-40 hours to fully charge a car. Not to mention the issues with weather and trip hazards if you don’t have a suitably located and protected outdoor socket.

Instead, the majority of people who purchase an electric car will also look into getting their own home charger. These typically come with 3.6kW or 7kW ratings, which are referred to as slow and fast, respectively. With a 3.6kW charger, it can take between 10-20 hours to fully charge a car. That’s cut to 5-10 for its 7kW counterpart.

Charging at home with a dedicated charging unit is undoubtedly the most convenient option. Many people choose to charge overnight so their car is powered up and ready to go in the morning. That may also allow you to take advantage of cheaper off-peak energy prices, depending on your tariff. Either way, your home is the cheapest place to charge an electric car – excluding the odd free charging opportunity we’ll cover below.

In car parks

As electric cars become more and more popular, car parks are having to adapt to meet demand. From supermarkets, retail parks and shopping centres to gyms, cinemas and town centres, electric charging facilities are being installed as a way to modernise car parks and attract customers with electric cars.

Needless to say, this is just as convenient as home charging because you can charge while you shop, exercise, eat or even watch a film. In some cases, businesses or councils will even provide charging for free as a way to incentivise using the nearby facilities or attractions.

As an example, Tesco has rolled out free 7kW charging at some of its stores, with the option to pay for a faster service. That can give you up to 50 miles per hour while you shop. It’s worth noting that these car parks will have a maximum stay – usually 2-3 hours for Tesco – so you can’t rely on them for anything more than a top up.

At work

Private business car parks are another place where electric charging units are popping up. There are a variety of reasons behind this, including:

  • Convenient charging for their own electric fleet
  • Making chargers available to visitors and clients
  • Providing an additional perk for employees
  • Boosting a company’s green image

Since 2016, businesses have also been able to claim back some of the installation cost. With the Workplace Charging Scheme, they can claim up to £350 per unit for as many as 40 chargers. This has no doubt made them more appealing to businesses throughout the UK.

So, if you’re wondering where to charge an electric car, your own workplace could be the answer. Some companies will provide charging to employees for free as a perk, others will require payment.

Which is best for you?

With the four options above, there’s plenty of choice when you’re wondering about where to charge your electric car. In terms of which is best, it depends on your requirements, nearby facilities and how you use your vehicle.

In most cases, a home charger is a smart investment as it will always be available when you need it. If you have electric vehicle charging at work and mainly use your car for commuting, however, you may be able to get by without a home charger.

Thankfully, you don’t have to decide between the different options. It’s perfectly normal to have a home charger but use supermarkets, work chargers and even service stations for a top up whenever it’s needed while you’re out and about.

Upgrading to an electric car

“Where to charge” isn’t the only query from people who are looking to make the switch from petrol or diesel to electric. With electric cars relatively new on the scene, tackling the up-front cost is another area of interest. Thankfully, car finance can help you surmount that hurdle by spreading the cost over several manageable monthly payments.

At My Car Credit, we’re dedicated to helping drivers across the UK upgrade their ride – including those keen on green electric cars. Use our car finance checker to get a better idea of how much it will cost, then let us compare deals from a large network of trusted lenders to find you the best rate. You’ll have an estimated monthly cost quicker than you can say “ultra-rapid charging”!

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Are Second Hand Electric Cars Worth Buying?

Electric car at charging station

From minimising your environmental footprint to eliminating petrol expenses, electric cars (EVs) offer some seriously good benefits. Purchasing new can be expensive, which leaves many Brits asking the question, “are second hand electric cars worth buying?”

Like any big purchase, it’s important to consider the pros and cons before signing on the dotted line. If you’re thinking about making the switch to electric, or you’re just interested in finding out more about the EV trend, this article is for you.

Read on as we cover everything you need to know about buying second-hand electric cars and whether they’re a good investment.

A nation of EV enthusiasts

Before we get stuck in it’s worth taking a moment to recognise just how popular EVs are becoming in the UK. The nation has wholeheartedly embraced eco-friendly vehicles, with the latest statistics revealing that while overall car sales slumped in 2021, the EV market experienced an impressive growth rate of 66% from 2019.

Around 175,000 new EVs were registered on British roads in 2021, with best-sellers like the Tesla Model 3 representing more than 25,000 individual sales.

In total, more than 700,000 plug-in vehicles were registered by British motorists in November 2021. This includes more than 350,000 fully battery-powered EVs and almost 350,000 plug-in hybrids. These figures put the UK on track to hit more than a million registered EVs by the end of 2022. A huge achievement!

There’s plenty to love about EVs but are second hand electric cars worth buying? Below, we spotlight some key factors to consider when making a decision:

Your lifestyle

Whether you buy new or used, it’s worth factoring in your lifestyle when deciding whether to make the switch to electric. EVs are a terrific concept and do offer “eco prestige” but for some motorists, they’re simply not convenient.

For example, access to off-road parking, so you can easily recharge your EV overnight, is desirable. Many second-hand EVs don’t offer the same rapid-charge technology as newer models, which makes off-road parking essential.

Similarly, if you’re driving long distances a second-hand EV may not offer the same impressive mileage as a newer model. That said, EV mileage is rapidly improving which means models from 2021 or 2020 may easily meet your needs.

Financial benefits

Even second-hand electric vehicles can be expensive, with Karolina Edwards-Smajda, Retailer & Consumer Product Director at Auto Trader describing the market as a “catch-22” in a recent interview with Car Magazine.

“When it comes to low-emission vehicles, the industry is facing a Catch-22 situation,” says Karolina. “The growing appetite of AFVs [alternative fuel vehicles] offer the industry a great opportunity for growth, but for mass adoption, the average price needs to be more accessible to more people. However, with so few vehicles in the market, even second-hand cars are being pushed out of financial reach for most consumers.”

Karolina makes a good point, but it’s important to remember that the cost of your purchase will be offset by several factors. These include:

Savings at the forecourt

Buy a fully battery-powered second-hand EV and you’ll eliminate petrol expenses from your life completely.

Clean air zones

Cities across the UK are introducing clean air zones designed to deter emissions-heavy vehicles and encourage the use of public transport and EVs. Driving a second-hand EV can be a savvy way to sidestep the costs associated with entering areas like Ultra Low Emission Zone (ULEZ) in London, which can cost you £12.50 per day if your car doesn’t meet ULEZ standards.

Lower registration costs

When it comes to vehicle registration costs, the Department for Transport offers big savings for EV drivers.

Budget is important, so don’t forget to do the maths and calculate how much you can afford to borrow before browsing. Our car loan APR estimator is designed to streamline the process and make it as easy as possible to crunch the numbers. 

Skipping long wait times

The global semiconductor chip shortage has wreaked havoc on the car manufacturing industry and EVs are no exception. The average EV calls for hundreds, sometimes even thousands, of these tiny chips. As a result, supply can’t keep up with demand which means you could face wait times of more than a year when buying a new electric car. Buying a used EV is a clever way to skip the long wait times and get behind the wheel of an electric car ASAP. 

The best second-hand EVs to buy

While demand is high and supply is low, there are still some great deals to be had when it comes to second-hand electric cars. If you take the time to shop around and back your search with help from an expert broker, you can drastically increase your chances of securing a good deal.

There are some exciting used models up for grabs in 2022, with some of our favourites listed below. All offer great value for money and excellent stats in terms of mileage and driver-friendly features:

  • Nissan Leaf
  • Tesla Model 3
  • BMW i3
  • Volkswagen eGolf
  • Tesla Model S
  • Jaguar i-Pace
  • Citroen C-Zero
  • Renault ZOE
  • Smart ForFour electric

The future of the EV market

Despite the semiconductor chip shortage that’s caused supply issues around the world, analysts predict a bright future for the EV market. In 2022, you can expect to see almost 50 new EV models launched by manufacturers, including a huge range of SUVs. Keep an eye out for models by leading manufacturers such as Tesla, Volkswagen, BMW, Audi, and Mercedes.

We’re also excited to see new offerings from companies like Lucid, Aiways, Fisker and Rivian. These high-voltage newcomers are set to shake up the market and challenge the dominance of EV giants such as Tesla and Nissan in the UK. This is great news for the second-hand market, with an influx of new models set to increase supply and bring prices down.

Financing your second-hand electric car

Ready to start your search for a second-hand EV? Whether you’re in the market for a zippy Nissan Leaf or a sleek Jaguar I-Pace, we’re here to help. Apply online without impacting your credit score or get in touch via email or phone 01246 458 810 to find out more about how our team of advisors can help you supercharge your search and secure the best deals on EV finance.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Which Used Cars Have Zero or Low Road Tax?

Man driving in a used car

Whether you cruise along country lanes or speed along urban motorways, if you’re behind the wheel of a car you’re subject to road tax. Brits are a thrifty bunch. As such, it’s no surprise that many motorists take steps to minimise their road tax payments.

So, which used cars have zero road tax? Here’s our guide to beating the Exchequer and keeping your road tax payments as low (or non-existent) as possible.

What is road tax?

Road tax, or Vehicle Excise Duty (VED) as it’s officially referred to by the government, earns the Exchequer around £40 billion a year. This translates to around 5% of total government revenue. It’s a huge cash cow and plays a big role in topping up the kitty.

Contrary to popular belief, road tax isn’t necessarily used to maintain roads and doesn’t go directly to the Department for Transport. Instead, it’s channelled to the Exchequer along with other duties such as council tax. Sure, this fund can be used to fix potholes and build new motorways. However, VED can also be put towards the construction of schools, hospitals and other government-funded projects.

What can you expect to pay?

VED rates increase with inflation and as a result, payments tend to climb every year. If you drive a petrol or diesel car registered after April 1 2017, your annual flat VED rate is £155. For alternatively fuelled cars, including hybrid, LPG and bioethanol vehicles, the rate is £145. If you drive a luxury car valued at £40,000 or higher, an additional £335 is added for your first five years on the road.

Before you switch to the flat rate, you’ll pay an initial ‘first year’ registration amount determined by CO2 emissions. This can be up to £2,365, depending on the model and environmental credentials. All this changes if you drive an emissions-free vehicle, with VED dropping to zero, even if your car is worth more than £40,000.

The bottom line? Go electric and unlock big savings.

Embrace the EV revolution

In 2021, battery electric vehicles (BEVs) accounted for around 4% of new car sales in the UK. This may seem small, but it represents a huge leap compared to the 0.6% market share BEVs occupied in 2019. This is great news for used car buyers as an increase in new BEV sales translates to more choice on the preowned market. Today, you’re spoilt for choice with a huge range of all-electric saloons, hatchbacks and SUVs.

According to the UK government website “the electricity must come from an external source or an electric storage battery not connected to any source of power when the vehicle is moving to be exempt”.

Here are a few of our favourite models if you’re wondering which used cars have zero road tax.

Tesla Model S 2014

In 2014, a brand new Tesla Model S came with a price tag of up to £96,000. Opt for a second-hand model in 2022 and you can slash your budget to as low as £22,000. The high-end Model S was considered state-of-the-art in its day and still holds its own against newer models. The seven-seat models can take you from zero to 62mph in just 2.5 seconds, meaning the Tesla Model S doesn’t compromise on speed or power.

Sure, the latest Tesla models may feature exciting new bells and whistles, but the overall design remains very similar. All Tesla models continue to rely on the Supercharger network which means you won’t run into any headaches when looking for places to power up.

Nissan Leaf 2010

In its heyday the Nissan Leaf 2010 sold for between £30,000 to £40,000. Today, you can snap one up for as low as £3,000, depending on mileage. You’ll enjoy a compact size for easy inner-city driving and parking, excellent safety features and a surprisingly spacious interior. What’s not to love? A 108bhp motor promises plenty of power and while you won’t be able to hit more than 93mph, this punchy little model is perfect for urban driving.

Jaguar i-Pace 2018

If you want to go electric but would prefer a newer model, consider the Jaguar i-Pace 2018. In its launch year the Jaguar i-Pace would have cost you around £65,000. More if you wanted extra features. Today you can score these luxury EVs for as little as £40,000 and pay zero road tax. What’s more, the newer release date means the market isn’t flooded but if you can get your hands on a used Jaguar i-Pace 2018 you won’t regret it.

Opt for low emissions and save

Another great way to keep your road tax to a minimum is to opt for a low emissions vehicle. Road tax is determined by CO2 emissions which means the greener your car, the less you’ll pay. So, which used cars have low road tax?

Aim for a vehicle that falls into the 1 to 50 CO2 emissions (g/km) bracket and you’ll pay just £10 for your first-year registration tax. For cars in the 51 to 75 CO2 emissions (g/km) range you’ll pay £25. Compared to the £2345 you’ll have to fork out for vehicles with emissions of 255g/km or higher, the savings for low-emissions vehicles are enormous.

Go retro and avoid road tax

Wondering which used cars have low road tax? The UK government has confirmed that vehicles manufactured before 1 January 1981 are exempt from road tax. Why? It’s generally assumed vintage cars won’t rack up enough miles to make a significant contribution to CO2, hence the exemption. As such, if you’re willing to take your chance on a car manufactured before 1981, this could be a novel way to avoid road tax.

Get behind the wheel of a used car today

Now you know more about which used cars have zero road tax, it’s time to start shopping. Whether you’re searching for a used Ford Fiesta, a preowned Vauxhall Corsa or an eco-friendly electric model, we’re here to help. Check your car finance eligibility online or get in touch with the My Car Credit team to find out more about how we can get you behind the wheel of a low-tax used car and unlock big VED savings in the process.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
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  • You are or have recently been on the electoral role
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  • Your credit cards are over their limits
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£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!