smart has moved far beyond the two-seat city cars that first made the badge familiar in the UK. Its current range is fully electric and includes the #1, #3 and larger #5, while used buyers can still choose fortwo and forfour models. Smart car finance can spread the cost through personal or business funding, with current campaigns including 0% PCP.
Enjoy Finance explains vehicle funding and links to third-party providers. We do not provide finance directly, and the website contains affiliate links.
How does Smart car finance work?
smart UK Automotive Ltd acts as a credit broker rather than a lender. Its current finance products are provided by Santander Consumer (UK) plc trading as Santander Consumer Finance.
Private and business customers can access PCP, Contract Purchase, Contract Hire and Conditional Sale. The right route depends on whether you want ownership or plan to return the vehicle.
PCP leaves the ownership decision until later
Personal Contract Purchase uses a deposit, fixed monthly payments and an Optional Final Payment. You also agree an annual mileage figure, which helps shape the monthly cost and expected end value.
When the agreement finishes, you can pay the Optional Final Payment and keep the car, return it subject to mileage and condition rules, or move into another vehicle where equity is available.
Used EV values can move as battery technology, pricing and demand change. PCP gives buyers an agreed final figure rather than relying entirely on resale value.
Read Personal Contract Purchase for a wider explanation.
Current support varies between the #1, #3 and #5
smart is currently using 0% APR PCP across its new electric range, but manufacturer support and deposit requirements are not identical.
Current #1 promotions include up to £5,000 of manufacturer support, including a £1,500 smart EV Car Grant on qualifying cars. The #3 currently carries £2,500 of support, also including the £1,500 grant.
Current offers include 0% APR PCP with a 20% customer deposit, while a 3.9% APR alternative can reduce the minimum deposit to 5%. Manufacturer support also varies by trim.
When comparing Smart car finance, look at the vehicle discount, deposit, APR, monthly payment, Optional Final Payment and total amount payable separately. A discount reduces the price being funded, while a lower rate changes the cost of borrowing.
For wider comparisons, visit PCP Car Deals.
New smart finance is not fully completed online
smart uses a digital-first sales journey, so buyers can research models, stock and specifications online.
However, smart currently states that finance and leasing orders are placed through a local smart retailer, many of which are integrated with Mercedes-Benz locations.
References to ALD or smart Mobility Financial Services can still appear for older leasing agreements, but they should not be assumed to describe a new 2026 agreement.
The #1 and #3 suit different electric-car buyers
The #1 is a compact electric crossover, while the #3 has a lower, coupé-style body. Both are available in high-performance BRABUS form as well as more conventional trims, so insurance, tyres and electricity use can vary.
Smart car finance should be compared using the exact derivative rather than a range-wide headline figure.
The #5 changes what the smart badge represents
The #5 is larger than the #1 and #3 and moves smart further away from its original city-car positioning.
A 20% deposit on a #5 is a different cash commitment from the same percentage on a smaller car, which is why the current 0% versus 3.9% choice deserves close comparison.
Business users can compare Contract Hire
smart currently offers Business Contract Hire across the #1, #3 and #5 range. The business pays an initial rental followed by fixed monthly rentals and returns the vehicle at the end.
Mileage is agreed in advance, and charges can apply for excess mileage or condition outside the contract standard.
Because every current new smart is fully electric, company-car users can also benefit from the 4% zero-emission Benefit-in-Kind percentage for the 2026/27 tax year. The vehicle’s list price still affects the taxable benefit.
Salary sacrifice may also be available through an employer or third-party scheme. Savings depend on salary, tax position, scheme charges and vehicle choice.
Three years of servicing is already included
One useful part of the current smart ownership package is the Integrated Service Package.
smart states that servicing is covered for up to three years or 30,000 miles on all new cars regardless of how they are financed. If the agreement lasts longer or the mileage limit is reached sooner, servicing beyond that point is not included.
For Smart car finance, that servicing period is worth comparing with the length of the agreement. The standard vehicle warranty is three years with unlimited mileage. Separate high-voltage battery and electric-component warranties run for longer, with mileage limits varying by model.
Used fortwo and forfour models need a different approach
The used market still contains petrol, electric and earlier EQ fortwo and forfour cars at much lower prices than the current new range.
An older car may suit Hire Purchase or a personal loan better than PCP, particularly where age limits future-value finance.
Before arranging Smart car finance on a used model, check service history, MOT records, battery condition on electric versions, tyres, charging equipment and previous repairs.
What is HP Car Finance? explains the ownership-focused option, while Car Loans covers unsecured borrowing.
Compare charging and finance in the same budget
Every new smart is electric, so home charging can have a large effect on day-to-day costs. Public rapid charging can be useful for longer journeys but is often more expensive than home charging.
Before choosing Smart car finance, compare the deposit, manufacturer support, APR, monthly payments, mileage conditions, total amount payable and any Optional Final Payment. Then add charging, insurance and servicing costs that sit beyond the included package.
What is a good car finance rate? and Car Finance FAQs provide more general guidance.
Enjoy Finance provides information about vehicle funding and may link to third-party providers. Any quote, application or agreement is supplied by the relevant third party and remains subject to its own eligibility, affordability checks and terms.
FAQs
Who provides smart finance in the UK?
Current smart finance products are provided by Santander Consumer (UK) plc trading as Santander Consumer Finance. smart UK Automotive Ltd acts as a credit broker rather than the lender.
Does smart currently offer 0% finance?
Yes. smart currently advertises 0% APR PCP across its new electric range, with model-specific manufacturer support and deposit requirements. Current campaigns are time-limited.
Can I finance a used smart fortwo or forfour?
Yes. Finance can be available through independent providers on used smart models. Vehicle age, value, mileage and your circumstances can affect the products offered.
Is Business Contract Hire available on smart electric cars?
Yes. smart currently offers Business Contract Hire on the #1, #3 and #5, with an initial rental, fixed monthly rentals and an agreed mileage allowance.
Is servicing included with a new smart?
smart currently includes scheduled servicing for up to three years or 30,000 miles through its Integrated Service Package, regardless of how the new car is financed.
