Snapshot
- Westpac announces new loan for prospective hybrid and electric vehicle buyers
- RACQ also offers a Green Car Loan for EVs
- Every Australian state and territory now offers incentives for EVs
As the popularity of electrified vehicles grows in Australia, more and more banks are offering loans catered to helping new car buyers go green.
While Westpac has recently become the first of Australia’s ‘big four’ banks to offer lower interest rates on car loans for electrified vehicles, it’s far from the first financial provider to offer such an incentive – nor are its rates the best on offer for potential hybrid and EV buyers.
For instance, Pepper Money’s electric vehicle loan was rated as the best in the 2022 Canstar Green Excellence Awards, with buyers benefitting from fixed and comparison rates of 3.99 per cent while also being able to borrow up to $300,000 – enough to purchase any EV on the market other than the Porsche Taycan Turbo S.
RACQ’s offer allows buyers access to $300,000 for their electrified purchase
Prior to Westpac, Macquarie was the biggest bank offering EV loans, with its rates mirroring those of Pepper Money but with the added ability for buyers to take out up to $500,000 for their purchase.
Peter van der Westhuyzen, Head of Institutional and Direct for Macquarie’s Personal Banking, said being a part of reducing the carbon footprint of its customers was an important part of the business’s operations.
“We know that one of the most tangible things people can do to reduce their carbon footprint is to reduce emissions from their personal transport,” said van der Westhuyzen. “For many Australians who are considering buying an EV, wanting to make a positive impact on the planet is where the decision start.
“At Macquarie we’re committed to helping our customers reduce their carbon footprint and by transitioning to an EV. We know purchasing an EV is an exciting step, but it’s also a new landscape to navigate for many Australians.
“We want to help with on that journey which is why we offer a car loan with a discounted interest rate and no fees, as well as a specialist EV buying service to support that shift.”
The Royal Automotive Club of Queensland (RACQ) also offers a Green Car Loan for EVs, plug-in hybrids (PHEVs) and hydrogen fuel-cell vehicles (FCEV), albeit at a slightly higher fixed rate, but lower comparison rate to Westpac’s offer – also with the lowest minimum amount for a loan.
Every Australian state and territory currently provides incentives for EV ownership through either rebates or lower taxation, with prospective buyers encouraged to check out what their local area provides before purchasing.
Beating its main rivals in ANZ, Commonwealth and NAB to the punch, Westpac’s reduced interest loans can be taken out on new or used hybrid and electric vehicles, offering a fixed rate of 4.99 per cent per annum and a comparison rate of 6.21 per cent per annum – far lower than its usual respective rates of 6.49 per cent and 7.69 per cent for conventional vehicles.
Consumer research conducted by the bank showed seven out of 10 Australians plan to buy an electrified vehicle in the future, with 34 per cent of current petrol or diesel owners aiming to do so for their next automotive purchase.
Chief Executive Chris de Bruin believes the bank’s lower rates will encourage more consumers to move over to green vehicles, helping Australia reach net zero emissions in the future.
“We all have a part to play in helping Australia move toward net zero. We know that cost is one of the biggest barriers to hybrid and electric vehicle uptake, so this offer can help more customers transition to a greener vehicle,” de Bruin said.
“Given the recent increase in petrol prices, electric and hybrid vehicles appeal to the environmentally conscious, and the financially conscious too. We expect demand for these vehicles will continue to rise, with many Australians already planning to make the change.
“We’re also seeing new Government incentives, improved access to charging stations, and more manufacturers offering hybrid and electric vehicles, which will help accelerate the transition.”
Below is a list of data compiled from RateCity regarding green car loans.
Remember to always assess your financial situation and seek professional advice before applying for a loan.
| Supplier | Fixed Interest Rate | Comparison Rate | Loan Amount |
|---|---|---|---|
| Loans.com.au (variable) | 3.14% | 3.68% | $5000-100,000 |
| Loans.com.au (fixed) | 3.14% | 5.44% | $5000-100,000 |
| Pepper Money | 3.99% | 3.99% | Up to $300,000 |
| Macquarie | 3.99% | 3.99% | Up to $500,000 |
| Move Bank | 3.99% | 4.35% | $10,000-150,000 |
| Community First Credit Union | 3.99% | 4.63% | $10,000-100,000 |
| Illawarra Credit Union | 4.74% | 5.01% | $5000 and above |
| Westpac | 4.99% | 6.21% | $10,000-100,000 |
| RACQ | 5.59% | 5.59% | $3000-150,000 |
| Plenti | 5.69% | 6.24% | $10,000-100,000 |
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