Financing an e-car or leasing it cheaply makes sense? Which is better?
The abolition of the environmental bonus threatens to slow down the electric car trend. You can read here what options you have for financing an electric car, whether leasing makes sense and how you can save money when financing an electric car.
he future belongs to electric cars: electric cars have been on the rise for several years. In 2023, around 524,000 such vehicles were newly registered in Germany - 50,000 more than in 2022 and almost three times as many as in 2020. But with the end of state subsidies, the environmental bonus, an important pillar of e-car financing has disappeared. However, manufacturers and retailers are reacting: Many are lowering prices or taking over the subsidies that have been lost. You can find out what this means in concrete terms and what options you have for e-car financing here.
Financing an e-car via an installment loan
Regardless of the type of drive, an installment loan with a fixed purpose is one of the classic ways of financing a car for all those who cannot simply pay the purchase price with the help of savings. A clear advantage is that you can act as a cash payer vis-Ã -vis the retailer, so that there may still be room for negotiation at the final price. In addition, the loan terms can be negotiated much more flexibly than with dealer financing, which we will introduce to you in more detail below. In addition to individually agreed terms and installment amounts, possible payment breaks or free special repayments are also possible, for example.
Financing an e-car through the bank: Compare offers
Financing an electric car through the manufacturer
Another way to finance the e-car is through the dealer: The dealer provides clear framework conditions, such as the amount of the down payment, the monthly installment amount, the term and the interest. As security, the vehicle registration document (registration certificate part 2) is also deposited with the dealer. Only after you have paid off the full purchase price for the e-car will you receive the vehicle title – and only then will the car officially belong to you.
0 percent financing as a bait offer
Dealers often advertise 0 percent financing, where you can pay off the installments without adding interest. You should check carefully what sounds cheap: Sometimes the dealers get the money back elsewhere. Either because the base price of the e-car is higher and you are not granted any discounts from the list price. Or you may be sold additional services and insurance. Often, the closing rate is so high in the end that (expensive) follow-up financing has to be concluded.
Financing an e-car: What makes sense when?
Depending on their personal requirements, everyone has Funding opportunities Its advantages and disadvantages. Balloon and three-way financing are suitable if you only pay small installments at the time of closing, but can certainly raise a larger sum at the end of the term. When deciding between financing with a retailer and an independent bank, it is worth making a detailed comparison.
When making this comparison, keep in mind the expert tip for saving interest as well as the possible advantage of paying cash at the retailer. In concrete terms, this means that ask the dealer before the loan comparison what discounts there may be on the list price and compare the final price with the price that the dealer makes you for the financing offer. Depending on the purchase price and interest on the respective loan, a loan can be more worthwhile than other options.
Financing the creditworthiness of an e-car as a factor
Regardless of whether you decide to finance with a retailer or through an independent bank, your personal creditworthiness is the decisive factor in interest rates. In addition to salary statements, which you must submit, the financiers also obtain a credit bureau report. Only with a flawless file will you receive a favorable offer. Minor flaws are often compensated for with higher interest rates, although each bank takes a slightly different approach to assessing creditworthiness and it is therefore worthwhile to obtain several offers.
If you are not sure yourself how your Schufa score is doing and/or if your score is not optimal, you can first obtain a free self-disclosure and then take concrete measures. A separate guide explains how to use a improve negative Schufa score.
You should be careful with Loan offers without Schufa query Dubious providers are often hidden behind them – German credit institutions are obliged to carry out such a check before the loan is approved. A more serious alternative to e-car financing can then be a Personal loan because there is actually no credit bureau query for such loans, but the interest rates are usually somewhat higher in comparison.
In order to finance the e-car particularly cheaply, a Loan comparison indispensable for the electric car. You can find a top offer via the Verivox comparison calculator. Simply enter the required loan amount and the desired term as well as the purpose "car / motorcycle". You will then be shown various non-binding offers to finance your electric car. If you are interested in one or more offers, you can usually contact the respective bank directly online and have a binding offer made to you. The subsequent conclusion of the contract is also often completely digital.
What is important when comparing offers
The central point in the loan comparison is the effective annual interest rate mentioned above – i.e. how much you have to pay to the bank in addition to the actual loan amount. Unlike the borrowing rate, the effective interest rate already includes any additional fees. In addition, the point of special repayment is particularly interesting. Many providers allow such payment free of charge. In the most expensive case, a maximum of 1 percent of the early repaid amount may be charged as a fee.
Financing an e-car with a final instalment
In addition to the classic installment loan to finance the e-car, there are other financing options from the bank: Regardless of the drive, the so-called Car loan with final installment – also known as balloon financing. In this case, you agree on relatively low installments with the lender and only at the end do you make a large final payment, through which you repay the loan. What sounds tempting is only suitable for financing an electric car to a limited extent: While with a classic installment loan, the repayment portion within the monthly installment continues to increase over time and interest rates fall, with balloon financing you also pay interest on the final installment until the end. This may quickly make this financing more expensive than expected.
The three-way financing
Three-way financing is very similar or an extension of balloon financing. The main difference can be found at the end of the term: Then you can choose whether you pay the final installment completely out of your own pocket, take advantage of follow-up financing or return the e-car to the dealer. However, the latter is only possible without any problems if there is almost no depreciation in the car.
Financing an electric car through the manufacturer
Another way to finance the e-car is through the dealer: The dealer provides clear framework conditions, such as the amount of the down payment, the monthly installment amount, the term and the interest. As security, the vehicle registration document (registration certificate part 2) is also deposited with the dealer. Only after you have paid off the full purchase price for the e-car will you receive the vehicle title – and only then will the car officially belong to you.
0 percent financing as a bait offer
Dealers often advertise 0 percent financing, where you can pay off the installments without adding interest. You should check carefully what sounds cheap: Sometimes the dealers get the money back elsewhere. Either because the base price of the e-car is higher and you are not granted any discounts from the list price. Or you may be sold additional services and insurance. Often, the closing rate is so high in the end that (expensive) follow-up financing has to be concluded.
Financing an e-car: What makes sense when?
Depending on their personal requirements, everyone has Funding opportunities Its advantages and disadvantages. Balloon and three-way financing are suitable if you only pay small installments at the time of closing, but can certainly raise a larger sum at the end of the term. When deciding between financing with a retailer and an independent bank, it is worth making a detailed comparison.
When making this comparison, keep in mind the expert tip for saving interest as well as the possible advantage of paying cash at the retailer. In concrete terms, this means that ask the dealer before the loan comparison what discounts there may be on the list price and compare the final price with the price that the dealer makes you for the financing offer. Depending on the purchase price and interest on the respective loan, a loan can be more worthwhile than other options.
Financing the creditworthiness of an e-car as a factor
Regardless of whether you decide to finance with a retailer or through an independent bank, your personal creditworthiness is the decisive factor in interest rates. In addition to salary statements, which you must submit, the financiers also obtain a credit bureau report. Only with a flawless file will you receive a favorable offer. Minor flaws are often compensated for with higher interest rates, although each bank takes a slightly different approach to assessing creditworthiness and it is therefore worthwhile to obtain several offers.
If you are not sure yourself how your Schufa score is doing and/or if your score is not optimal, you can first obtain a free self-disclosure and then take concrete measures. A separate guide explains how to use a improve negative Schufa score.
You should be careful with Loan offers without Schufa query Dubious providers are often hidden behind them – German credit institutions are obliged to carry out such a check before the loan is approved. A more serious alternative to e-car financing can then be a Personal loan
because there is actually no credit bureau query for such loans, but the interest rates are usually somewhat higher in comparison.
Elimination of the environmental bonus: What it means
What made the purchase of an electric car attractive and affordable for many for a long time was the environmental bonus, which surprisingly expired at the end of 2023. Buyers were able to save up to 6,750 euros thanks to the subsidy from the federal government. Originally, it was planned to continue the environmental bonus in 2024 under adjusted conditions and to phase it out at the end of the year. In autumn 2023, however, a ruling by the Federal Constitutional Court ensured that 60 billion euros were lost from the Climate and Transformation Fund. The federal government then had to replan the budget for 2024 - and make savings. The environmental bonus fell victim to them.
Retailers react to the discontinuation of subsidies
Some retailers take over the state share of the subsidy. Still others advertise generous discounts and time-limited discount campaigns in order to continue to offer electric cars at an attractive price. Detailed research with the individual manufacturers and a comparison is worthwhile if you want to save money when buying an electric car.
Regional funding programmes remain in place
Regardless of the environmental bonus of the federal government, there will continue to be funding programs of individual states and cities in 2024. Before buying, look specifically for subsidies in your own state. Even though these are usually not as extensive as the environmental bonus, these programs help to finance an e-car.
With the so-called GHG premium, you also save money after buying an electric car. In this case, you virtually sell the CO2 you save and receive a bonus of 250 to 350 euros per year. The sale takes place via intermediaries to mineral oil companies. Only owners of pure electric vehicles can participate – plug-in hybrids are not considered.
Good to know: New and used electric cars also have certain tax advantages, especially for the self-employed or employees with a company car. In the case of private use, the company car is considered a non-cash benefit that must be taxed monthly. However, the tax rate applied to an electric car is significantly lower than for gasoline or diesel vehicles.
Financing or leasing an e-car
If you are not yet sure whether an electric car is a worthwhile investment in the long term, you can also lease an electric car, i.e. borrow it for a limited time and pay off monthly leasing installments. However, keep in mind that the car does not automatically belong to you after the leasing period.
In addition, there is a Leasing Several cost traps: On the one hand, you agree on a fixed mileage allowance with the retailer at the beginning, which forms the basis for the monthly installments – if you exceed this, high additional payments are sometimes due upon return. In addition, leasing installments are subject to VAT, which quickly makes the offer much more expensive, especially for private individuals. Self-employed persons have an advantage here as an exception, because they can deduct VAT via the advance tax return. Together with the tax advantages already mentioned above, leasing is therefore a popular approach among companies and the self-employed.
Financing or leasing an e-car?
Whether it makes more sense to buy or lease an electric car depends on your preferences: Is it exclusively about getting from A to B in an environmentally friendly way? Or do you enjoy technical innovations and always want to drive the current top model? If the latter is the case, leasing is definitely a worthwhile approach for you – especially if you are self-employed due to the tax advantages.
Questions and answers about "Financing an e-car"
How much money do you get when you buy an e-car?
Until the end of 2023, buyers of an electric car received up to 4,500 euros from the federal government and 2,250 euros from the dealer. However, the so-called environmental bonus was discontinued with immediate effect in the course of the new edition of the 2024 budget, so that e-cars will no longer be subsidized. Only individual states and cities still offer (smaller) subsidies.
What is the difference between leasing and financing?
With leasing, you "rent" a car for a limited period of time and then return it to the dealer or manufacturer. With financing, you pay a monthly installment to the dealer over a fixed period of time and in the end the car belongs to you.
Which is cheaper: finance or lease?
If you look at the pure costs, leasing is usually always cheaper than financing. However, keep in mind that with leasing you only drive the e-car for a certain period of time and then return it to the dealer. With financing, the car is yours in the end.
How much does an e-car cost?
Electric cars start at just over 20,000 euros, but usually cost more like 30,000 to 40,000 euros on average. One of the cheapest models is the Dacia Spring at just over 20,000 euros. An electric car from Tesla costs around 50,000 euros, depending on the equipment.
What is the cheapest electric car?
The cheapest e-cars are already available for just over 20,000 – 30,000 euros. These include, for example, the following models:
- Smart EQ Fortwo
- Dacia Spring
- Renault Twingo E-Tech
- VW e-Up
- Fiat 500 Electric
What are the disadvantages of e-cars?
E-cars are more expensive to purchase than comparable cars with conventional gasoline engines, sometimes have a long charging time and only a limited range, so that very long journeys are only possible with longer interruptions. Another shortcoming is the charging infrastructure: this is often still very expandable.
What is the best electric car right now?
It is impossible to choose a clear number one in the electric car market due to the size of the offer and the different demands. However, there are some models that repeatedly achieve top rankings in tests in terms of price, performance and features. These include, for example, the Hyundai Ioniq 5 and MG4 Electric. Models from BMW and Mercedes score points in terms of range.
How much does e-car leasing cost?
Currently, you can find leasing offers for e-cars, which usually start at 130 euros per month. Of course, the actual rate also depends on various factors, such as the leasing period and the kilometers included. In addition to these instalments, you as the lessee also pay the costs for insurance, loads and regular maintenance. A car tax is currently waived for e-cars.
Subscription e-cars as an alternative to buying
Offering another alternative to buying Car subscriptions. You can currently find various vehicles from this category on offer from various providers. Finn, for example, offers a wide selection from small cars like the Fiat 500 e to a Tesla Model Y. You can now also get smaller but quite popular manufacturers such as Aiways or Polestar as a subscription. This variant offers you the opportunity to test e-cars for a fixed period of time without spending large sums of money right away.
Financing charging stations for e-cars
In order to be able to use an e-car, whether bought or leased, sensibly, it depends on the availability of charging stations in the immediate vicinity – unfortunately still a major problem in many regions. Anyone who owns a home can buy and install their own wallbox so that their own charging point is available at home. Such a box costs between around 500 and 1,500 euros, plus installation and setup, whereby the connection to the grid via a high-voltage line can be a cost driver. Depending on the effort, another 2,000 to 3,000 euros are incurred here.
Of course, the purchase of a charging station for your own e-car can also be financed through a loan. The originally planned resumption of the KfW funding programme for wallboxes in 2024 seems unlikely due to the above-mentioned ruling of the Federal Constitutional Court. Since then, however, various federal states, cities and municipalities have set up their own funding programs. Before buying a wallbox, it is best to find out whether and what options are available in your place of residence.
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