Electric vehicles: what are my loan options?

woman charging electric vehicle

Many Aussies are turning their attention to electric vehicles (EVs). 

In fact, according to the Australian Bureau of Statistics (ABS) latest Motor Vehicle Census, as of January 31 2021 there were more than 23,000 registrations of EVs nationwide. That’s a 62.3% increase year on year.  

Plus, as part of the federal government’s Future Fuels Fund, the Australian Renewable Energy Agency (ARENA) recently announced a further $24.55 million worth of funding to help expand Australia’s EV fast-charging network. 

So with more EVs on the road and more charging stations to be made available - you may be wondering how you can get your hands on one. 

How can I fund an electric vehicle? 

When it comes to funding an electric car, if you’re needing to borrow to cover the cost you may want to keep your eye out for a green car loan

According to Carsguide, fully electric vehicles range from $43,990 to around $200,000 in price. While this is a higher price range than fuel-run cars, the cost of charging can be significantly cheaper than the cost of filling up petrol. 

And the good news is, when it comes to car loans some lenders’ green options have lower rates than their other vehicle financing offerings. 

Right now on the Mozo database, four lenders offer green car loans: Bank Australia, Bank First, Illawarra Credit Union and loans.com.au with the average rate between them sitting at 4.75%. This is compared to the average new car loan rate across the Mozo database that sits at a higher 6.21%. 

Plus, currently loans.com.au’s Clean Green Car Loan has the lowest car loan rate on the Mozo database at 3.97% p.a. fixed rate (4.51% p.a. comparison rate*). 

But wait, what is a green car loan? 

Green car loans are designed to fund the purchase of an eco-friendly vehicle - which may be a fuel-efficient car, a hybrid (half fuel-run, half electric) or an EV. 

Like most other car loans, a green car loan will likely be secured, so the car you are buying will be held as security. If you end up defaulting on your loan, the lender may then repossess the vehicle as collateral. 

Currently on the Mozo database, borrowing amounts across green car loans start from $5,000 and loan terms are between one and seven years. 

It’s important to note that while green car loans may have lower rates, you don’t necessarily need to take out a green loan to fund the purchase of an EV. There are plenty of low-rate new car loan options that may suit your needs better. 

Want to compare car loans? Check out these options below …

Compare Green Car Loans

Loans.com.au Clean Green Car Loan
  • Low fixed rate of 3.97% p.a. (4.51% p.a. comparison rate*)
  • 2021 Mozo Experts Choice Award winner^ for Best Green Car Loan
  • Flexible repayment options

Looking for an award-winning loan to help you land yourself seated behind the wheel of an electric vehicle? The loans.com.au Clean Green Car Loan may be a good choice! This loan offers an extremely low fixed rate of 3.97% p.a. (4.51% p.a. comparison rate*) and comes with flexible repayment options, such as the choice of a weekly fortnightly or monthly repayment schedule and the ability to make extra repayments. Customers can borrow between $5,000 and $100,000 and pay it back between three to five years without worrying about paying ongoing service fees. Just bear in mind, there is a hefty $400 application fee and you may face a $700 charge if you pay off your debt ahead of time. Also remember, there are no redraws allowed on this loan.

Bank First Discounted Green Car Loan
  • Fixed or variable rate of 5.29% p.a. (5.56% p.a. comparison rate*)
  • Flexible repayment options
  • Redraw allowed (minimum amount $500)
Find out more

Funding an electric vehicle can be daunting, so that’s why you need the right loan behind you. Bank First’s Discounted Green Car Loan not only ticks the boxes in terms of its interest rate offerings, it also has flexible repayment options. With this loan borrowers can choose either a fixed or variable rate, both which currently sit at 5.29% p.a. (5.56% p.a. comparison rate*). There is a minimum borrowing amount of $5,000, however there is no maximum limit. Loan terms range from one to seven years, and borrowers can opt to make weekly, fortnightly or monthly repayments. On top of that, extra repayments are allowed as well as redraws - just be mindful there is a minimum amount of $500 per redraw. It’s also worth noting that while there are no ongoing service fees, there is a $195 application fee straight off the bat and if you opt for a fixed rate and pay off your loan early you may face break costs (no break costs apply for variable loans).

Compare New Car Loans

Wisr Secured Car Loan
  • Fixed rates from 4.74% p.a. (5.01% p.a. comparison rate*)
  • Flexible repayment options
  • No early repayment penalty

When it comes to car loans, Wisr offers a pretty competitive new vehicle option. Based on a customer’s credit rating, this loan offers fixed rates that start from a low 4.74% p.a. (5.01% p.a. comparison rate*). Borrowing amounts range from $5,000 to $63,000 and loan terms are between three and seven years. Not only does Wisr offer the choice of a weekly, fortnightly or monthly repayment schedule, the lender also allows customers to make extra repayments, too. However, they cannot make redraws. In the case of fees, there are no ongoing or early repayment costs, but there is an upfront application charge of $195 to budget for.

SocietyOne Car Loan - Excellent Credit
  • Fixed rates from 5.95% p.a. (5.95% p.a. comparison rate*)
  • No early repayment penalty
  • No ongoing fees

SocietyOne’s Car Loan not only rewards customers with excellent credit by offering them a low fixed rate, there are no ongoing or early repayment fees to worry about. With this loan, fixed rates are based on a customer’s credit rating and start from 5.95% p.a. (5.95% p.a. comparison rate*). Customers can borrow anywhere from $5,000 to $50,000 and opt for a loan term between two and five years. While borrowers must choose to make repayments on either a fortnightly or monthly basis, they can make extra repayments whenever they like. However, SocietyOne doesn’t allow redraws on this loan. Also remember, the upfront establishment fee is also based on a customer’s credit rating and can be as dear as $595.

Where can you buy an electric car in Australia? 

Not all car brands offer EVs downunder at the moment, but some do. 

Here are a few carmakers that are selling electric cars to Aussies right now: 

  • MG 
  • Hyundai
  • Nissan 
  • Renault 
  • Mini Cooper 
  • Kia 
  • Mazda 
  • Tesla 
  • Lexus 
  • BMW
  • Mercedes-Benz
  • Polestar (Volvo) 
  • Volvo 
  • Jaguar
  • Audi
  • Porsche 

Looking to find out more about low interest car loans before sealing the deal? Head over to our car loans comparison page for more top providers as well as handy guides, tips and the latest car news!

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