The Ultimate Guide to Financing: Electric Car Chargers

The Ultimate Guide to Financing: Electric Car Chargers

As the electric vehicle (EV) revolution gains momentum, many UK drivers are making the switch to cleaner, greener cars. However, one critical aspect that often gets overlooked is the installation of an electric car charger at home. While charging infrastructure is expanding across the UK, having a dedicated home charger provides unparalleled convenience. But how do you finance the installation of an electric car charger? In this comprehensive guide, we’ll explore the costs, financing options, and how Kandoo, a UK retail finance broker, can help you spread the cost of your investment.

Why Install an Electric Car Charger at Home?

Before diving into the financing options, it’s essential to understand the benefits of having a home EV charger. Here are some key reasons:

1. Convenience: Charging your car at home means you can plug in overnight and wake up to a fully charged vehicle. No more waiting at public charging stations or worrying about finding one when you need it most.

2. Cost Efficiency: Charging your EV at home is often cheaper than using public chargers, especially if you take advantage of off-peak electricity tariffs. You can also avoid the potential costs of rapid charging stations, which tend to be more expensive.

3. Faster Charging: Most home chargers offer a faster charging speed compared to using a standard 3-pin plug. This means less time spent waiting for your car to charge and more time enjoying your EV.

4. Increase in Property Value: As electric vehicles become more popular, having a home charger can add value to your property, making it more attractive to potential buyers.

How Much Does an Electric Car Charger Cost?

The cost of installing a home electric car charger can vary depending on several factors, including the type of charger, installation complexity, and whether you qualify for government grants. On average, you can expect to pay between £500 and £1,200 for a standard 7kW home charger, which is the most common choice for UK homeowners.

Breakdown of Costs:

• Charger Unit: The price of the charger itself typically ranges from £300 to £700, depending on the brand and features (e.g., smart functionality, Wi-Fi connectivity).

• Installation: Installation costs can vary, but typically range from £200 to £500. Factors that may affect installation costs include the distance from your fuse box to the charger location and whether any electrical upgrades are needed.

• Grants: The UK government previously offered the Electric Vehicle Homecharge Scheme (EVHS), which provided up to £350 towards the cost of a home charger. However, this scheme has now ended for most homeowners, though landlords, renters, and some others may still qualify under different schemes. Be sure to check the latest information on available grants.

Financing Your Electric Car Charger

While the initial cost of a home EV charger can seem daunting, there are various financing options available to help spread the cost. Financing can make it easier to invest in a charger without needing to pay the full amount upfront.

Financing Options

1. Personal Savings: If you have the funds available, using personal savings is the simplest way to pay for your electric car charger. However, not everyone has the financial flexibility to make a large purchase outright.

2. Credit Cards: Many people choose to pay for their EV charger using a credit card. While this can offer short-term flexibility, it's important to be mindful of interest rates, which can add to the overall cost if the balance isn’t paid off quickly.

3. Personal Loans: A personal loan can be a good option if you prefer to spread the cost over a longer period. Many banks and financial institutions offer loans specifically for home improvements, which could include the installation of an EV charger.

4. Retail Finance: Another option is to finance the purchase through a retail finance broker like Kandoo. Kandoo works with a panel of trusted lenders to help you find the most suitable finance solution for your needs. They can help you spread the cost of your EV charger over manageable monthly payments, making it easier to budget for the installation.

How Kandoo Can Help You Finance Your Electric Car Charger

Kandoo is a UK-based retail finance broker that specialises in helping consumers find finance options for a wide range of products and services, including home improvements like electric car chargers. Here’s how Kandoo can assist you:

1. Access to Multiple Lenders: Kandoo works with a variety of lenders, meaning you can compare different finance options and choose the one that best suits your budget and circumstances.

2. Flexible Payment Terms: Kandoo offers a range of repayment options, allowing you to spread the cost of your EV charger over a period that suits you. Whether you prefer a shorter term with higher monthly payments or a longer term with lower payments, Kandoo can help you find a plan that works for you.

3. Competitive Interest Rates: By working with multiple lenders, Kandoo can help you find competitive interest rates, potentially saving you money over the course of your finance agreement.

4. Quick and Easy Application Process: Kandoo’s online application process is straightforward and user-friendly. You can get a decision in minutes, and once approved, you can proceed with your purchase and installation.

5. No Hidden Fees: Kandoo is transparent about its fees and charges, so you won’t have to worry about any hidden costs.

Factors to Consider When Financing Your EV Charger

When deciding how to finance your electric car charger, there are several factors to keep in mind:

1. Interest Rates

If you’re opting for a loan or retail finance, it’s essential to understand the interest rate you’ll be charged. A lower interest rate means you’ll pay less over the life of the loan, so it’s worth shopping around or using a broker like Kandoo to find the best deal.

2. Repayment Terms

The length of your repayment term will affect your monthly payments. While a longer term can reduce your monthly outgoings, you’ll end up paying more in interest over time. Be sure to choose a repayment term that balances affordability with overall cost.

3. Early Repayment Options

Some lenders allow you to pay off your loan early without incurring any penalties, while others may charge a fee. If you think you might be in a position to pay off your finance agreement early, make sure to check the terms and conditions.

4. Government Grants

Although many homeowners are no longer eligible for the Electric Vehicle Homecharge Scheme, it’s still worth checking if you qualify for any other grants or incentives. This can significantly reduce the overall cost of your charger and may affect your financing needs.

Other Ways to Save on Your Electric Car Charger

In addition to financing, there are other ways to reduce the cost of your electric car charger:

• Shop Around: Prices for EV chargers can vary significantly between retailers, so it’s worth comparing prices before making a purchase. Some retailers may also offer bundle deals that include installation.

• Energy Tariffs: Many energy suppliers offer special tariffs for EV owners, such as cheaper rates for charging your car during off-peak hours. Switching to an EV-friendly tariff can help you save on your electricity bills over time.

• Tax Incentives: While the UK doesn’t currently offer tax credits for home EV chargers, it’s worth keeping an eye on government policies, as new incentives may be introduced as the EV market continues to grow.

Conclusion

Installing an electric car charger at home is a smart investment that offers convenience, cost savings, and potential increases in property value. While the upfront cost can be significant, financing options like those offered by Kandoo can make it more manageable. By spreading the cost over time, you can enjoy the benefits of a home EV charger without straining your finances.

Kandoo’s easy-to-use platform, access to multiple lenders, and flexible repayment terms make it a great choice for anyone looking to finance their electric car charger. Whether you’re upgrading your current charging solution or installing one for the first time, Kandoo can help you find the right finance option to suit your needs.

As electric vehicles continue to become more popular in the UK, now is the perfect time to invest in a home charging solution. With the right financing in place, you can ensure your EV is always ready to go, while also contributing to a greener future.