Many customers still approach EVs with uncertainty, not just around charging, but around cost, value and long term affordability, writes Tim Smith, head of Black Horse Motor Finance.
For dealers, this creates both a challenge and an opportunity. The retailers succeeding with EVs today are not just those with the widest choice but those who guide customers through a more complex decision with confidence and clarity.
Finance has a central role to play in that experience.
EVs often involve new terminology, different price points and evolving residual value assumptions – all of which can feel daunting to customers if not handled well.
Retailers should focus on simplifying the conversation – presenting finance options clearly and using plain language and consistent comparisons, helps customers be in control of their decision.
That means explaining what monthly payments cover, how mileage or usage affects agreements, and what flexibility exists over the term.
Transparency builds trust. When customers understand why an EV finance illustration looks the way it does and how it compares to alternatives, they are far more likely to progress with confidence.
Black Horse are now rolling out their new finance platform and this helps dealers compare quotations on multiple products side by side, so they can more easily understand the features and benefits of their options.
It’s also important that customers have a real understanding of what buying and EV really means and the myth busting on our EV hub is a great place for dealers to get real data to answer questions.
Affordability messaging vs total ownership cost
For most customers, the monthly payment of a vehicle remains the primary decision driver. But broader conversation is always needed.
Because of the significant difference in value drivers between EV and ICE this becomes even more important.
Electric vehicles can offer attractive total cost of ownership benefits, particularly through lower servicing and fuel costs – a topic especially relevant right now, as recent global events have brought it into focus.
These advantages are not always well understood though.
Successful retailers are those that balance clear monthly affordability with simple, real world context around running costs – for example using side by side fuel vs charge comparisons during the sales conversation.
It doesn’t need to be overly technical. Comparing typical fuel spend versus home charging, outlining servicing expectations, or showing how mileage and usage affect the overall picture can effectively reassurance buyers.
Finance helps frame these conversations in a familiar and credible way when tied to what customers pay each month.
How finance can support confidence
As the used EV market grows, confidence becomes even more important. Concerns around battery health, future value and ownership duration remain common concerns, even when the reality is much more positive.
Finance can play a crucial role. Structured products, sensible terms and clear explanations around warranties and condition scoring help normalise used EVs as a viable, lower risk option, rather than an unknown alternative.
For dealers, this is also an opportunity. At Black Horse we’re working hand-in-hand with our dealers to build lasting confidence in electric vehicles.
Used EVs open the door to new customer segments and more accessible price points. When retailers are equipped with finance solutions that support longevity and flexibility, they are better placed to unlock that demand.
Where customer understanding breaks down
From our experience, confusion tends to arise not because EVs are complex, but because information is patchy.
Customers often arrive with partial research, headlines without context, or assumptions formed elsewhere. Misconceptions are still slowing customers down.
And when uncertainty meets a major purchase decision, trusted voices matter more than ever. That’s where dealers can make the difference.
Dealers can help address misunderstandings by leading the conversation rather than reacting to it. Make the cost savings real – bring numbers into conversations early.
Highlighting used EV options can play a crucial role in widening affordability and trust. Proactively explaining charging options early, addressing finance alongside vehicle choice, and ensuring sales teams are confident discussing EV specific questions without overcomplicating them can all help.
Our EV Hub is the perfect place to prepare for factual information that busts some of the myths on EV.
Consistency across people, processes and partners is key. When the messaging aligns, trust is built.
Practical steps retailers can take
Improving the EV customer journey doesn’t require a complete overhaul. Small, focused actions can make a meaningful difference.
Bringing finance into the conversation earlier is a strong starting point, equipping sales teams with simple, clear EV finance talking points that help normalise the discussion from the outset.
Using real world examples to explain affordability and ownership is equally important. Sharing stories from existing EV owners provides reassurance in a way that product specifications alone cannot, grounding the proposition in lived experience.
This can be reinforced through personalised range walkthroughs, tailored to a customer’s actual commute and driving patterns, helping to make the technology feel relevant and practical.
When it comes to charging, clarity is critical. Walking customers through real charging maps on screen or via smartphone apps can demonstrate coverage in a tangible way, while explaining home charging options and typical installation processes removes uncertainty.
Highlighting the continued development of rapid charging infrastructure also helps to reinforce that progress is ongoing rather than stalling.
Used EVs should be treated with the same confidence and structure as new vehicles. Clear reassurance around battery longevity, recycling and warranty coverage can help address common concerns.
Alongside this, actively encouraging test drives allows customers to experience first-hand how EVs differ, often doing more to build confidence than any explanation.
Author: Tim Smith, head of Black Horse Motor Finance.
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