Car Loans

Compare green car loans 2021

Learn what a ‘green car’ is and what some of its benefits are.

Low rate green car loans 2021

The table below features car loans with some of the lowest fixed interest rates for low-emissions vehicles on the market.

Advertised rate Comparison rate Monthly repayment Interest TypeVehicle TypeMaximum Vehicle AgeOngoing FeeApplication FeeTotal RepaymentEarly RepaymentInstant ApprovalOnline Application
FixedNew1 yearGo to site

Green Car Loan

FixedNew2 yearsGo to site

New Vehicle Fast Loan Low Rate

  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old

New Vehicle Fast Loan Low Rate

  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
FixedNew, Used5 yearsMore details

Fixed Car Loan (with Low Emission Vehicle discount)

Base criteria: fixed and secured car loans for 'low emission' cars. Data accurate as at 01 September 2020. Rates based on a loan of $30,000 for a five-year loan term. Products sorted by advertised rate. Repayments are calculated based on advertised rates. Rates correct as of September 25, 2021. View disclaimer.

Guides and resources:

What is a green car?

A green car is a car that is better for the environment than standard cars because it produces fewer carbon dioxide emissions. Carbon dioxide (CO2) is a greenhouse gas and one of the biggest contributors to global climate change. It is produced by burning organic and carbon compounds such as petrol so environmentally friendly cars often run on little-to-no fuel.

Some lenders offer a discounted interest rate on car loans for low emission vehicles to encourage borrowers to be more environmentally aware.

So essentially, lower emissions can equal lower interest rates, which means more savings. 

What qualifies as a green car?

A car needs to have significantly lower than average carbon dioxide (CO2) emissions to qualify as a ‘green car’ and this must be compared to other vehicles of its size. This means it doesn't necessarily have to be a hybrid or electric model

According to, you are likely to qualify for a green car loan if the car:

  • Is a new or demonstration vehicle
  • Is more fuel efficient than average (when compared to cars of its size)
  • Is a hybrid or electric vehicle (which uses both petrol and electric engines to power the car)
  • Emits less than 141 grams of CO2 per kilometre for a passenger vehicle, or less than 188 grams of CO2 for a ute or van

This information should be displayed somewhere in the vehicle – either on the windscreen or in the service manual.

What are the benefits of owning a green car?

There are a number of benefits involved in driving a green car – both for the environment and for the owner. In particular, green cars:

  • Can reduce the interest rate on a car loan, saving you money over the course of the loan
  • Produce fewer emissions, which reduces the amount of CO2 released into the environment
  • Create less noise than regular vehicles with sole combustible engines
  • Will generally save you money on the cost of fuel as they are more fuel efficient (which means fewer stops at the fuel station)

Can I save money with a green car loan?

A recent initiative to help reduce carbon emissions was the introduction of discounted loans for environmentally-friendly cars. Vehicles which meet the eligibility requirements above can receive interest rates up to 100 basis points lower, saving you money over the course of the loan.

Case study

Damien was looking at taking out a $30,000 car loan (5yr term) when he noticed that his lender offered a 0.7% p.a. discounted rate for green cars. After doing some research, he discovered that while green cars were a little more expensive upfront, he would not only save money from fuel efficiency (and reduce his CO2 emissions) but that he would also save nearly $600 in interest payments over the loan term from the discount he would get from his lender.
Damien decided that the sum of the benefits was worthwhile in buying a car that qualified for a green car loan.’s two cents

For some people, the benefits of discounted interest rate and fuel efficiency of green cars outweigh the higher purchase price. At the end of the day, it depends on your personal financial situation.


The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2019. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and

Some providers' products may not be available in all states.

In the interests of full disclosure,, Performance Drive and are part of the Firstmac Group. To read about how manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $30,000 loan over 5 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.