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The most popular EV finance terms in 2026 – and what this means for dealers

With dealers having to prepare for more growth in electric vehicle demand in 2026, we’ve analysed our 2026 EV finance data to show what finance terms customers are opting for – and what this means for car dealers.

All data correct as of July 2026.

Electric vehicle finance split

In 2026 so far, 62% of our customers chose Personal Contract Purchase (PCP) over Hire Purchase (HP). By comparison, only 32% of petrol and diesel vehicle customers opted for PCP.
Electric vehicle
HP 38.4%
PCP 61.6%
Petrol/diesel
HP 68.3%
PCP 31.7%
Lady charging electric vehicle bought through evolution funding using ev finance

EV buyers favour mid-term flexibility

EV customers favour a 48-month term in 2026, with 60 months also becoming increasingly popular as buyers balance affordable monthly payments with long-term ownership.

Finance term length: 48 months
Number of paid-out customers

1,826

% of EV customers

43.1%

Finance term length: 60 months
Number of paid-out customers

1,335

% of EV customers

31.5%

Finance term length: 49 months
Number of paid-out customers

557

% of EV customers

13.2%

Combined, these three term lengths made up 87.8% of all EV finance agreements in 2026.

Top lenders are backing EV demand

In 2026, 24 of our lenders have supported electric vehicle applications. Motonovo, Alphera and Northridge saw the highest number of EV accepts in 2026, giving dealers a good indication of where lender appetite for electric vehicles remains strongest.

Motonovo
Accepts

686

Alphera
Accepts

633

Northridge
Accepts

227

Want to see our full list of electric vehicle lenders? Get in touch with us to learn more.

What this means for dealers in 2026

EV buyers are thinking differently to ICE buyers – flexibility matters more, so PCP should be a big part of your EV conversations.
A 48-month term appears to be the EV comfort zone, making it a strong starting point for advertising available terms.

The ZEV mandate will increase EV supply, so getting your advertised finance terms right now will mean easier sales later on.

If you’re mainly presenting just one finance option on EVs, there may be an opportunity to turn more leads into buyers by broadening how you structure deals.
EV buyers are thinking differently to ICE buyers – flexibility matters more, so PCP should be a big part of your EV conversations.
A 48-month term appears to be the EV comfort zone, making it a strong starting point for advertising available terms.

The ZEV mandate will increase EV supply, so getting your advertised finance terms right now will mean easier sales later on.

If you’re mainly presenting just one finance option on EVs, there may be an opportunity to turn more leads into buyers by broadening how you structure deals.

Give your EV customers more finance options

As EV demand continues to grow, having access to lenders who already fund EVs will help you turn stocked EVs into paid-out deals.
Evolution Funding gives dealers access to the broadest lender panel of any UK broker – including leading EV finance lenders – to help support your EV sales strategy.
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