- Green Car (EV) Loans often provide lower interest rates
- Can be packaged with solar panels, batteries and EV chargers in to the loan amount
- Sometimes come with perks such as free charging
If you're looking for an electric car loan, you might want to consider “EV loans” or “green loans”. These loans often have discounted interest rates and have features specific to electric vehicles, or EVs, that aren’t found in traditional car loans. Examples include bundling it with an EV charger or access to free public charging. The convenience of bundling and perks can make these loans worth considering if you’re buying an EV, though you shouldn’t restrict your search to these types of loans exclusively.
What makes Green Car (EV) Loans Different
EV loans more or less work like normal car loans. What makes EV loans different is that they could contain a services or features unique to EV ownership, including:
- Loan amounts that include the cost to install a solar system, batteries and/or level 2 charger at your home.
- Free charging of your EV at select public charging networks
- Free roadside assistance
- EV rebates incorporated into your loan details.
Interest Rate Discounts
It is common for a lender that offers both EV and traditional loans to reserve its lowest rates for EVs. Often this is possible due to subsidised financing they receive from government organisations (CEFC) which they are able to pass on to customers.
The EV discount offered by a loan provider is a comparison only to other loans offered by it — not to loans offered by any other provider. So, for example, you may see EV loans advertised as being 0.5% or 1.0% lower than that provider’s standard loans. That is no guarantee that you won’t get a lower rate elsewhere even if its not labelled an EV or Green loan.
Who Offers Green Car (EV) Loans?
Green car loans are offered by several different types of lenders from traditional banks to credit unions. As you can see the interest rate offered is significantly lower than the comparison rate.
Below is a list of current Green Car (EV) loans available in the Australian market. This list is current as at 12 August 2023.
Green Car (EV) Loans vs. EV Novated Leases
If your employer offers salary packed novated lease as an employee benefit, you may want to consider this option as an alternative to green car loans. The tax benefits of arising from an electric car novated lease could mean it is the better financial option for you.
Green Car (EV) Loan FAQs
About the author
Danny is a consultant and entrepreneur working at the cutting edge of the electric vehicle and energy transition. He is passionate about educating and helping consumers make better decisions through data. He is the founder of zecar and is currently the EV Innovation Manager at Endeavour Energy.
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