Donal Murphy, managing director of Bluestone Motor Finance, shares some key information around EVs.

In April, Electric Vehicle (EV) sales rose 48.6% year-on-year, and 42% of all new cars sold were EVs. There is significant momentum amongst car buyers to go electric.

When it comes to the umbrella term EVs, there is a range of options; the three main kinds of EVs are:

1. BEV
A fully battery-powered electric vehicle, BEVs can recharge by plugging the car into the grid using a cable.

2. Hybrid Electric Vehicles (HEVs)
HEVs are both electric and petrol/diesel powered. The energy that powers their batteries is gained through regenerative braking or while driving using the combustion engine. HEVs cannot be charged through the grid. Typically they run 2-3 miles only on electricity.

3. PHEV (Plug-in Hybrid Electric Vehicle)
PHEVs have both an engine and an electric motor. PHEVs can recharge their batteries through regenerative braking or with the engine, but unlike a HEV, they can recharge from the grid and only use the combustion engine when the battery is depleted.

A PHEV will run on electricity for between 20 – 50 miles typically.

Financing an EV
For people looking to buy a new EV, notably BEV, there is still the opportunity to benefit from government-supported incentive schemes.

BEV Grant: Grants from the Sustainable Energy Authority Ireland (SEAI) of up to €5,000 for a new BEV are available, but the maximum grant will be reduced to €3,500 from July 1st 2023.

Home Charger Grant Scheme: Again, through SEAI, grants of up to €600 towards the installation costs of a home charger are available.

Other potential benefits
• Low Emissions Vehicle Toll Incentive (LEVTI) Scheme – EV owners may get reduced toll fares through the LEVTI, which runs until December 31st 2023 (or up to a maximum of c. 50,000 low-emission vehicles).

• Motor Tax – Electric vehicles are charged just €120 per year for a BEV.

• Benefit-in-Kind (BIK) Exemptions/Discounts are available where a BEV is made available to an employee. The treatment applies to both new and used cars.

Vehicle finance
EVs are becoming increasingly mainstream, and as such, the main financing products, Hire Purchase (HP), Personal Contract Purchase (PCP) and Personal Leasing, are all available on new cars. While PCP generally offers lower monthly payments than HP, buyers will pay more interest overall than a HP deal at the same rate. PCPs also carry mileage and wear and tear conditions. Wear and tear conditions also apply to Personal Leasing, and again, while monthly payments are typically lower than for HP, the overall costs can be higher. You can never own a leased car.

Vehicle manufacturers commonly offer finance alongside their vehicles. Sometimes this can include special low-interest rate incentives, which can be attractive, but buyers are free to assess their options.

Looking to the growing used EV market, finance options are led by HP and PCP. The current advantage for used EVs is that prices have fallen recently as supply catches up with demand. While used cars do not benefit from the grants available on new vehicles currently, the realignment of values makes them increasingly attractive.