Manufacturers are investing billions into the electric vehicle market, fuelled by international environmental legislation for economies to adopt carbon-neutral and net-zero emissions targets. What does this mean? It’s all apart of a global future-driven plan designed to reduce fossil fuel emissions to benefit society for generations to come.


Advertisement

In the market for a new car? The table below features green car loans with some of the lowest interest rates on the market for low-emissions vehicles.

Lender

FixedNew1 year
More details
Approval within 24 hours
  • Save the planet. Save thousands on your car loan.
  • Get a discounted rate if you buy electric
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
Approval within 24 hours

Green Car Loan Fixed

  • Save the planet. Save thousands on your car loan.
  • Get a discounted rate if you buy electric
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
FixedNew, Used7 years
More details

Hybrid and Electric Car Loan

    VariableNew99 years
    More details

    Green Car Loan

      VariableNew99 years
      More details

      Electric Vehicle Loan-New Car Loan

        FixedNew, Used3 years
        More details

        Green Fixed Rate Car Loan

          Important Information and Comparison Rate Warning

          All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

          The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

          Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of May 26, 2024. View disclaimer.


          The state of the Australian EV market

          Once upon a time electric vehicles were considered a weird and whacky fad product for the wealthy. Remember the small cube shaped cars you would see in the streets of inner-city suburbia? Just like those. Now the times have changed with some of the biggest global motor vehicle manufacturers altering everything from brand image to manufacturing and vehicle portfolios to meet the demands of society globally for low-emission vehicles.

          Electric vehicles may have only accounted for 1% of total car sales in Australia throughout 2020, yet with both petrol prices and used car markets remaining at dizzying highs across the nation coupled with the recently announced Federal Government EV strategy, now may be as good a time as ever to take advantage of incentives and consider an EV for your next set of wheels.

          How do EVs work?

          Electric vehicles (EVs) work by using an electric motor powered by a rechargeable lithium-ion battery pack, rather than using a traditional petrol-powered internal-combustion engine.

          The first thing you’ll need to power your electric vehicle, is electricity - shocking right?

          To charge the battery in your EV, you connect your EV to an external charging point that ranges across three levels:

          • Slow - Level 1 AC trickle charging, through the use of a wall socket.

          • Fast - Level 2 AC fast charging, through the use of a plug-in wall box charger.

          • Rapid - Level 3 DC rapid charging, through the use of a public DC rapid charger, often found in shopping centres.

          Electric vehicles in Australia store DC electricity, meaning the electricity used through a wall socket or plug-in wall box charger is converted by the EV from AC to DC to power the vehicle.

          EV AC & DC.jpg

          Source: Wallbox

          There’s one of the advantage of owning an EV that is often overlooked, which is the unique ability of EVs to capture kinetic energy while the vehicle is decelerating (slowing down) and feed that power back to the battery. It achieves this by reversing the rotation of the electric motor when slowing down, which produces instead of consuming power and is then transferred back to the battery. Enough with the science talk - to put it simply, EVs essentially produce free fuel which is impossible with a petrol engine vehicle.

          When considering an EV, the lithium-ion battery pack powering the EV is just like a regular car’s fuel tank but for electricity instead. The bigger it is, the more costly the vehicle will usually be to purchase, yet the upside means you can travel further before recharging. If you do however find yourself on that last 20% of battery charge, independent sites such as PlugShare take the guess work out of finding EV charging stations across Australia.

          State Government subsidies for EVs

          The Federal Government does not offer subsidies for Australians in the market for a new EV, with State Governments taking the reins instead.

          Where the Federal Government will step in is with the promise of convenient access to public fast and rapid charging stations for 84% of the Australian public under the recently announced Future Fuels and Vehicles Strategy.

          The table below navigates the current subsidies available for the uptake of electric vehicles in each state across Australia. The Queensland and Western Australian Governments are yet to propose or implement an EV policy.

          EV Rebate/Discount Tax Breaks Registration Discount Road User Charge
          NSW $3,000 Applicable to first 25,000 EVs sold under $68,750. Stamp duty waiver for EVs under $78,000. - 2.5c/km charge for EVs and 2.0c/km for PHEVs by 2027.
          VIC $3000 Applicable to first 20,000 EVs sold below $68,740. Luxury duty waiver for EVs over $100,000. $100 annually. 2.5c/km for EVs and 2.0c/km for PHEVs from 1 July 2021 to 30 June 2022.
          SA $3000 Applicable to first 7000 EVs sold. - Three years free for new EVs. 2.5cm/km charge for EVs and 2.0c/km for PHEVs by 2027.
          QLD - EVs up to $100,000 pay 2% stamp duty, over $100,000 pay 4% stamp duty. - -
          WA - - - -
          TAS - Stamp duty waiver on all EVs until 1 July, 2023. N/A for private buyers, two years free for rentals. -
          ACT Interest free loans up to $15,000. Stamp duty waiver for EVs from $400 to $5,100. Two years free for EVs purchased up to 30 June 2024. -
          NT - $1,500 discount on new and used EVs from July 2022 until July 2027. Five years free from July 2022. -

          What new EVs are available to Australians in 2021?

          Here’s a list of all the EVs currently available on the Australian market in 2021. By breaking the EV market down into two categories, Savings.com.au highlighted the cheapest EVs that qualify for State Government rebates at under $70,000 and for those with a little more cash to splurge, 10 EVs currently available at prices over $70,000.

          Under $70,000

          Electric Vehicle Make Price (before on-road costs)
          MG ZS EV $44,990
          Hyundai Ioniq Electric Elite $48,970
          Mini Electric $59,250
          Tesla Model 3 $59,990
          Nissan Leaf e+ $60,490
          Hyundai Kona Electric $62,000
          Kia Niro Electric S $62,590
          Mazda MX-30 Electric $65,490

          Over $70,000

          Electric Vehicle Make Price (before on-road costs)
          Hyundai Ioniq 5 $71,990
          Mercedes-Benz EQA 250 $76,800
          Volvo XC40 Recharge $76,990
          BMW i4 eDrive 40 $99,900
          BMW iX3 $114,900
          Mercedes Benz EQC 400 $124,300
          Jaguar i-Pace $127,620
          Tesla Model S Plaid $132,718
          BMW iX Xdrive Series $135,900
          Audi e-tron 50 $137,100

          Savings.com.au's two cents

          We can see from the tables above the Australian market for EVs consists of a small number of cars under $70,000 that go for an average of $55,000. For the average Aussie, $55,000 is nothing to sneeze at, on par with average yearly income depending on how you measure it. Even with the most competitive fixed new car loan interest rates, it’s likely you will still be looking at high repayments over a lengthy loan depending on your credit history. Expect to see more lenders willing to come to the party in supporting the uptake of electric vehicles throughout 2022, offering discounted rates and incentives for customers looking to finance an electric vehicle.

          Image by Jannis Lucas via Unsplash