Real-world discounts on electric cars are growing fast, with average reductions now hitting 11.1% or £6,197 per car. The effect is immediate: median monthly PCP payments for EVs have dropped to £473, down from £510 at the start of 2025, according to new data from PHA Autodata.
The figures come in the wake of the Government’s recently announced EV grant, which has added further pressure on manufacturers to launch their own discounts to stay competitive. Despite interest rates creeping up slightly from an average 3.1% to 3.4% APR for EV finance deals, it’s the sticker-price cuts that are doing the heavy lifting.
Comparative median monthly PCP figures across other fuels are petrol cars at £359 a month, hybrids at £499, and diesels an eye-watering £594.
PHA Autodata’s Target Price data suggests that while some brands are tweaking finance rates, most are relying on bigger, and very visible, discounts to shift cars. For buyers focused on monthly affordability, that’s a welcome trend – especially as EVs have long carried a perception of being too expensive.
‘The big shift here isn’t just the discount itself – it’s what it does to real-world affordability,’ says Pat Hoy, owner of PHA Autodata. ‘We’re finally seeing EVs begin to close the gap with petrol models on monthly cost. That could be the turning point.’
What this means for you
If you’re in the market for an EV, this is a rare moment when market forces and Government incentives are working in your favour. Bigger discounts and finance deposit allowances mean lower monthly payments, which directly address one of the biggest turn-offs for potential buyers.
You may still pay more per month than for a petrol equivalent, but the difference is shrinking fast. And with fuel savings and road tax exemptions still in place, the overall running costs could tip the balance in favour of electric.
The key now is timing. If you’re considering a switch, it’s worth shopping around and comparing deals across brands. With some manufacturers offering thousands off list price, there’s real value to be had.
Editor’s view: lower monthly payments are making EVs more attractive
I’ve been saying for a while now that upfront EV prices aren’t the real issue – it’s the monthly payments that make or break a deal for most buyers. So this is exactly the kind of market shift we need to see.
It’s interesting that manufacturers are leaning into discounting rather than playing with APRs. That tells me they’re serious about clearing stock – and know that most buyers focus on the number that hits their bank account each month.
For me, £473 a month puts a lot of EVs into the same bracket as mid-spec petrol SUVs. That’s progress. We’re not there yet, but the gap’s narrowing – and that’s a win for car buyers.
Keith Adams – Editor, Parkers
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