Hybrid Car Loans: How to Finance a Hybrid or Electric Vehicle

Hybrid Car Loans: How to Finance a Hybrid or Electric Vehicle

Posted on June 7, 2022

There is a seismic shift happening in motoring. A shift from fossil fuels that pollute the atmosphere to hybrids and electrics. But how can you finance one of these more expensive vehicles?

Our Binbrook auto loan team outlines your options.

What’s the difference between hybrid and electric cars?

First let’s tackle the key differences between hybrid cars and electric cars.

Hybrids use a gas engine with an electric motor and batteries. The electric motor will help the engine drive and can provide limited electric-only drive. The gas engine then charges the battery or uses regenerative braking to charge.

An electric car doesn’t have a gas engine. It’s a pure electric setup with motor(s) and batteries to provide drive. Plug the car in to charge, drive around town and get it home in time to recharge.

How to finance loans for electric or hybrid cars

You have the same options to finance a hybrid or electric car as you do a gas powered car. You can use dealership or manufacturer financing if it’s new, a bank or credit union or use our Binbrook auto loan team.

Each offers a range of options for longer loans or larger amounts to cover the currently higher price of hybrid or electric cars.

You will need to borrow more or put more money down to pay the premium that hybrids and electrics come with right now though. Until the technology advances and production processes are simplified, there is likely to be a premium to these cars for the foreseeable future.

They are the future though so it’s a good idea to make peace with alternative fuels!

Here’s what you can do to help pay for a hybrid or electric:

Larger down payment

Being able to put more money down not only allows you to borrow less, it also improves your chances of being approved for the loan. Typical down payments are between 10% and 20% but the more you can put down, the more comfortable you may find the loan.

Trade in and down payment

If you can trade in your old car and put money down, you can also lower the overall auto loan and further improve your chances of being accepted for the loan.

You can also sell your car privately and put the money towards the down payment but trade ins are a fast, simple way to dispose of your old car and taking money off your new one.

Longer auto loans in Binbrook

To counter the rising costs of all cars, not just alternative fuelled ones, you can now get auto loans for up to 8 years. That’s 96 months, which is a long time but means you can borrow more for a hybrid or electric car and keep the monthly payments sensible.

Look out for subsidies

Local and national governments sometimes offer subsidies towards electric vehicles. Lots of the main subsidies have passed now but if you’re planning to buy an electric, check for any new programs in your province.

Ontario has the Plug ’n Drive program that offers all kinds of assistance to residents. Other provinces likely do the same.

We will use all our skill and experience to deliver the lowest possible Binbrook auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

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