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Why Do Some Providers Not Offer Finance for Hybrid Cars?

A hybrid car is an automobile powered by two or more distinct sources of power – usually a gasoline engine and electric motor. Hybrid cars can offer improved fuel economy, lower emissions and reduced noise pollution compared to traditional petrol-powered automobiles.


Hybrid cars are becoming increasingly popular due to their environmental benefits, but not all providers offer finance for them. While there are a variety of factors that could be preventing some providers from offering financing for hybrid vehicles, the most common reasons include higher cost and lack of consumer demand.

Hybrid Cars = Higher Costs

The higher cost associated with hybrid cars is one reason why some providers may not offer hybrid financing. Hybrid vehicles tend to have more expensive parts than regular internal combustion engine (ICE) cars and require specialised maintenance which can further increase costs. As a result, it can be difficult for certain lenders to make money by providing loans on these types of vehicles as they would need to charge high interest rates in order to cover their losses.

The cost associated with owning a hybrid car will depend on the model and make of the vehicle. Generally, hybrid cars are more expensive than traditional petrol or diesel models due to their advanced technology and parts.

Another possible reason why some providers do not offer finance for hybrid cars is because there simply isn’t enough consumer demand yet. Although sales of hybrids have been steadily increasing over the years, they still only make up a small fraction of total car sales each year and may not provide enough business opportunities for certain lenders or dealerships to justify offering financing options specifically designed for these types of vehicles.

Are Hybrid Cars Cheaper to Maintain Than Conventional Cars?

Yes, hybrid cars are generally cheaper to maintain than conventional cars. Hybrid cars have fewer moving parts compared to regular cars, meaning they require less maintenance and don’t need costly repairs as often. The battery needs to be replaced every 5-10 years, but this cost is offset by the reduced fuel costs of a hybrid car.

Additionally, many manufacturers offer extended warranties on hybrid components so you can have peace of mind that any problems will be taken care of for free or at a discount. Despite these advantages, some providers still do not offer finance for hybrid cars due to the higher purchase price and uncertainty about resale values. As hybrids become more popular, however, this should start to change in the near future as more providers recognise their advantages.

The Choice Is Yours

Ultimately, the decision whether to offer finance for hybrid cars is up to individual providers. While some may be willing to take on the higher risk and cost associated with these types of vehicles in order to serve a growing customer base, others may choose not to offer financing due to the potential losses they could incur. Regardless, it’s important for consumers interested in buying a hybrid car to shop around and compare different financing options before making a purchase.

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