Car buying options: 3 ways to get an electric vehicle

By Paige Sutton · · 2 min read
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Man charging electric vehicle

Electric vehicles (EVs) and eco-friendly cars are the ‘it girl’ of the automotive world at the moment. They’re sleek, expensive, and on the rise - not to mention they have a great publicist. 

The Federal Chamber of Automotive Industries (FCAI) says that EVs accounted for 8 per cent of sales in April 2023, showing a sharp increase compared to the 1.1 per cent in April 2022. 

Eco-friendly options are definitely trending, with 5 out of the top 10 models sold in April offering some form of electrification. You aren’t alone if you are wanting to get a piece of the EV pie.

If you’re interested in driving an electric vehicle, chances are you googled for some tips, maybe a few rough figures and a plan of attack. You probably saw that EVs aren’t cheap, but there are a few options you can consider if you don’t have a brief case of cold hard cash to buy it outright. Depending on your lifestyle and financial goals, consider these options:

  • Novated leases 
  • Energy subscriptions 
  • Green car loan 

Novated lease 

A novated lease is an alternative way to finance your car that you may not have heard of. 

Here’s how a novated lease works into four simple steps:

  1. First, you get a lease agreement with a finance provider.
  2. Your employer sets you up with a ‘salary sacrifice’ arrangement to cover repayments under the novated lease from your pre-tax salary.
  3. Your employer makes repayments to your finance provider on your behalf from your pre-tax salary.
  4. Take the car with you if you change jobs and continue to make repayments directly or transfer your agreement to your new employer.

You may be interested in this you’re looking to reduce your taxable income and increase your tax savings. You can also include your car running costs in the payments which is convenient. There are terms and conditions as to what happens at the end of the lease, so always do research to see if this option is right for you.

Energy subscriptions 

Electric vehicle energy subscriptions are for those looking for less commitment but are still wanting to get in on the action. In this subscription you will pay a weekly fee to rent an EV, and may be subject to conditions like a kilometre limit. The rental term can go for 3, 6 or 12 months, or, month by month plans. 

This option gives you flexibility to try an EV without ownership, and can save money on fuel - or lack thereof. There are also bonus offers where you can trade in your rental car for a newer model every 6 months to stay on top of current technology.

Green car loan 

Green car loans are now offered by lenders to encourage the sale of more eco-friendly vehicles. They differ from standard car loans as they may come with lower interest rates or certain waived fees. There are eligibility terms and conditions that vary lender to lender regarding the car model and what constitutes an eco-friendly car. Electric vehicles fall under the eco-friendly category and could be the option for you if you’re looking to build equity in the car and have consistent repayments. 

You can still buy an EV with a regular car loan if that suits your needs. Choosing the right car loan comes down to having the best research available, at Mozo we crunch all the numbers for you. Check out our options below to compare which car loans may be right for you.

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Important disclosures and comparison rate warning*
RACV - Green Car Loan (Fixed)
  • Fixed rates from 5.49% p.a. (6.19% p.a. comparison rate*)
  • Free roadside assistance with 3 years included RACV Total Care (T&Cs apply)
  • No ongoing service fees

Helping you go electric, the RACV Green Car Loan offers competitive fixed rates from 5.49% p.a. (6.19% p.a. comparison rate*) on eligible vehicles. Borrow from $5,000 for terms between 1-7 years with no ongoing service fees and extra repayments available. There is a $499 application fee, and there is no redraw facility on this car loan. Borrowers can also score 3 years free roadside assistance with included RACV Total Care (T&Cs apply). RACV Members may also be eligible for discounted interest through the Years of Membership Benefits Program (T&Cs apply).

Car loan comparisons on Mozo

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 92 car loans.
Last updated 14 December 2024 Important disclosures and comparison rate warning*
  • Used Car Loan

    Fixed, Secured, No vehicle age limit, $5,000-$100,000

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured used car loan of up to $100,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for 1 month. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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    Details
  • Used Car - Unsecured Personal Loan

    Interest rate
    comparison rate
    Monthly repayment
    6.56% p.a.to 21.99% p.a.
    6.56% p.a.to 22.79% p.a.based on $30,000
    over 5 years

    Competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. $0 monthly fees and no early repayment fees to pay. Fast application process on the Revolut app. According to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away. Eligibility criteria applies.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.56% would cost $35,768.68 including fees.

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    Details
  • New / Demo Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.24% p.a.
    7.36% p.a.based on $30,000
    over 5 years

    Low variable car loan rate for purchasing new and demo vehicles from dealers. Personalised loan amounts between $5,000 and $150,000. Flexible repayment options. Choose between the 3 to 7 year loan terms. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.24% would cost $35,880.27 including fees.

    Compare
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    Details
  • New Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    7.29% p.a.to 16.99% p.a.
    8.00% p.a.to 17.77% p.a.based on $30,000
    over 5 years

    Competitive interest rates for vehicles up to 3 years old (new and demo). Maximum loan term of 7 years. No ongoing fees. Dealer/private sale acceptable. Pre-purchase approvals available.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 7.29% would cost $36,387.95 including fees.

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    Details
  • Better Car Loan Special Offer

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.48% p.a.
    6.89% p.a.based on $30,000
    over 5 years

    Get a fixed rate car loan for amounts over $20,000 with Police Credit Union. Make additional repayments at any time without penalty. Free online redraw. Available for new and used cars. Can also be used for motorcycles, boats, caravans, trailers or any registrable vehicle.

    Repayment terms from 1 year to 5 years. Representative example: a 5 year $30,000 loan at 6.48% would cost $35,497.21 including fees.

    Compare
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    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. 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.

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