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Highlights
- Once you purchase your EV, which ranges in price from around AU$44,000 to AU$200,000 you’re basically driving a big battery as after that, there are no fuel costs.
- “Green car loans” can potentially fund a fuel-efficient car, a hybrid (half fuel-run, half electric) or an EV.
- State governments, however, provide rebates and tax breaks for those purchasing EVs.
The future is here. It might not be cities in the sky and flying cars as portrayed in the Jetsons. But we do have metaverses and electric vehicles (EV). The need for clean fuel drove many car manufacturers to develop alternative fuel cars, including electric vehicles.
Furthermore, lenders and state governments are incentivising drivers to go green with subsidised loans.
Here’s How It Works
EVs are admittedly more expensive, which is perhaps one of the reasons why some people shy away from buying them. Consider though, putting the subsidised loan aside, once you purchase your EV, which range in price from around AU$44,000 to around AU$200,000, you’re basically driving a big battery after that, which means…no fuel. So you save considerable cost in the long term.
Green Car Loans
But let’s get on to the loans, which are dubbed “green car loans”. These loans can potentially fund a fuel-efficient car, a hybrid (half fuel-run, half electric) or an EV.
According to the Mozo database, borrowing amounts for green car loans start at AU$5,000 with loan terms between one and seven years.
- Loans.com.au offers a low fixed rate of 3.97% p.a. Customers can borrow between $5,000 and $100,000 with a payback period between three to five years.
- Bank First Discounted Green Car Loan gives borrowers a choice of either a fixed or variable rate, both which currently sit at 5.29% p.a. There’s a minimum borrowing amount of AU$5,000 but no maximum limit.
- Furthermore, loan repayment periods range from one to seven years.
- Wisr Secured Car Loan has loans offering fixed rates that start from a low 4.74% with borrowing amounts ranging from AU$5,000 to AU$63,000 and loan repayment periods between three and seven years.
- SocietyOne Car Loan offers customers fixed rates based on a customer’s credit rating starting from 5.95% p.a. Customers are able to borrow anywhere from AU$5,000 to AU$50,000 and opt for a loan term between two and five years.
State Government Subsidies
While the Federal Government don’t get involved in subsidising loans, they have promised to provide access to public charging stations for 84% of the Australian public under the Future Fuels and Vehicles Strategy.
State governments, however, provide rebates and tax breaks for those purchasing EVs.
For example, the NSW government is offering an AU$3,000 rebate to first 25,000 EVs sold under AU$68,750 as well as a stamp duty waiver for EVs under AU$78,000.
The Victorian government offers the same deal except they provide a luxury duty waiver for EVs over AU$100,000 and a registration discount of AU$100.
Queensland and Tasmania offer stamp a duty waiver. In Queensland, EVs up to AU$100,000 pay 2% stamp duty, over $100,000 pay 4% stamp duty. In Tasmania, there’s a stamp duty waiver on all EVs until 1 July 2023.
ACT probably has the best deal, with interest-free loans up to AU$15,000 and a stamp duty waiver for EVs from AU$400 to AU$5,100.
NT offers an AU$1,500 discount on new and used EVs from July 2022 until July 2027 with five years of free registration from July 2022.
Unfortunately, WA hasn’t jumped on board yet.
