Although you mightn’t think it in Ireland given the recent poor summer we’ve had, global warming continues unabated and the world is hurtling towards a point of no return. Hard choices lie ahead if we’ve to have any hope of leaving our little blue planet in any half-decent shape for future generations.

And one thing that’s constantly mentioned as a tool in the battle against climate change is a move towards electric vehicles (EVs). Indeed, to help encourage this, the Government is currently drafting new laws that would ban new petrol and diesel car registrations by 2030, with the aim of ensuring that one third of vehicles on the roads in Ireland are electric in 10 years' time.

However, as well as issues around charging, anyone who’s looked into purchasing an EV will know that cost is a huge prohibiting factor. While the vast majority of us want to do our bit for the environment, those of us who need access to a car often can’t afford to shell out the €30k or so plus interest that's needed to buy a new vehicle.

In recognition of this, AIB has teamed up with Nissan to launch its new Power of Zero initiative to help drive an increase in the sale of EVs.

What’s happening?

The ‘Power of Zero’ initiative offers motorists the opportunity to buy a new Nissan Leaf with 0% finance and to avail of one year’s free servicing also.

Customers who do so could save in excess of €13,000 in finance and running costs over five years, according to AIB, while also saving the planet 11 tonnes of C02 emissions, which is equivalent to planting 181,887 trees!

What else should I know?

The offer is only available on Hire Purchase (HP) or PCP finance deals, meaning you won’t own the car until all repayments have been made.

You’ll also need to stump up a minimum deposit of 10% yourself.

If you choose a HP plan you can avail of a two to five-year term. PCP plans are over two to three years only.

The car must be registered by 31st October 2020 and the offer is only available through AIB.

Commenting on the announcement, James McCarthy, CEO of Nissan Ireland said:

“This is a golden opportunity to make the switch into an EV today and to make very significant savings now and into the future. The Government’s environment policy is aimed at removing diesel and petrol cars from Irish roads and motorists already driving EVs will have a distinct advantage over customers trading in diesel and petrol engines in the years to come.”

Yvonne Holmes, Chief Sustainability Officer at AIB adds:

“The sustainability agenda is accelerating at AIB and for the last two years green lending has been the fastest-growing part of our balance sheet as customers seek to reduce greenhouse gas emissions and limit harmful air pollutants.

“We are delighted to be working with Nissan to help meet customers’ growing demand for cleaner transport as they take this important step on the road to a more sustainable future. Electric Vehicles can help consumers shrink their carbon footprint, while improving the quality of life for all through cleaner air and less noise pollution,” she added.

Savings Example - Nissan Leaf SV 40kwh Versus Popular 1.5 Diesel Hatchback

Model	Nissan Leaf SV 40kwh	Popular 1.5 diesel Hatchback	Leaf savings per year	Leaf savings over 5 years
RRP	€30,890	€30,890
20% deposit	€6,178	€6,178
Amount borrowed	€24,712	€24,712
Repayments per year	€4,942 based on 0% finance	€5,808 based on 6.8% finance	€866	€4,330
Fuel cost per year	€240*	€1,386**	€1,146	€5,730
Tolls per year	€100	€600	€500	€2,500
Road tax per year	€120	€190	€70	€350
Servicing per year	€120	€180	€60	€300
Total cost per year	€5,522	€8,164	€2,642
Total cost over 5 years	€27,610	€40,820		€13,210

*40kwh x 8c x 75 charges in a year based on driving 20,000km per year

**5.5 litres per 100km @€1.26 based on driving 20,000km per year

Mind the Ts&Cs

Anything that tries encourage a move towards less polluting cars can only be a good thing in our opinion.

And when you buy an EV you’ll save on running costs, motor tax and tolls, as well as doing your bit for the environment. A real win-win all round.

However, while the offer of 0% finance is definitely eye catching for motorists, and will save you thousands in interest alone, the requirement to stump up a minimum 10% deposit may not suit everyone. Plus the €30k cost of a new Nissan Leaf will be out of many people's budget, particularly if it all has to be paid back over five years max.

And if you buy under a PCP agreement, you’ll also be hit with a large ‘balloon’ payment at the end of the term if you want to keep the car. And as previously mentioned, with either a PCP or HP finance agreement you won’t own the car until it’s all been paid off, meaning if you get into trouble paying back your loan, the car could be taken off you.

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AIB teams up with Nissan to help drive an increase in the sale of electric vehicles