Electric vehicles: what are my loan options?

By Sara Borman · · 2 min read
Fact Checked
Advertiser disclosure
woman charging electric vehicle

Many Aussies are turning their attention to electric vehicles (EVs). 

In fact, according to the Electric Vehicle Council , as of January 2023, there were more than 83,000 registrations of EVs nationwide.  

Plus, as part of the federal government’s Future Fuels Fund , the Australian Renewable Energy Agency (ARENA) recently announced a further $177.7 million worth of funding to help expand Australia’s EV fast-charging network. 

In spite of this, many states in Australia are pulling back on the personal incentives to go green. NSW is the latest to pull back their electric vehicle rebate, following Victoria's lead. This is to focus on expanding the charging network across Australia.

With more EVs available and more charging stations coming - you may be wondering how you can get your hands on a green car.

How can I fund an electric vehicle? 

When it comes to funding an electric car if you need to borrow to cover the cost you may want to keep your eye out for a green car loan. 

According to Carsguide, fully electric vehicles range from $43,990 to around $200,000 in price. While this is a higher price range than fuel-run cars, the cost of charging can be significantly cheaper than the cost of filling up petrol. 

And the good news is when it comes to car loans some lenders’ green options have lower rates than their other vehicle financing offerings. 

The average rate for a green car loan currently sits at 6.37% p.a. This is compared to the average new car loan rate across the Mozo database which sits at a higher 7.35% p.a. 

But wait, what is a green car loan? 

Green car loans are designed to fund the purchase of an eco-friendly vehicle - which may be a fuel-efficient car, a hybrid (half fuel-run, half electric) or an EV. 

Like most other car loans, a green car loan will likely be secured, so the car you are buying will be held as security. If you end up defaulting on your loan, the lender may then repossess the vehicle as collateral. 

Currently on the Mozo database, borrowing amounts across green car loans start from $5,000 and loan terms are between one and seven years. 

It’s important to note that while green car loans may have lower rates, you don’t necessarily need to take out a green loan to fund the purchase of an EV. There are plenty of low-rate new car loan options that may suit your needs better. 

Want to compare car loans? Check out these options below

Compare Green Car Loans

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Important disclosures and comparison rate warning*
RACV - Green Car Loan
  • 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).

Loans.com.au Clean Green Car Loan
  • Low fixed rate of 5.79% p.a. (6.91% p.a. comparison rate*)
  • Flexible repayment options
  • 2022 Mozo Experts Choice Award^ winner
Find out more

Looking for an award-winning loan to help you land yourself seated behind the wheel of an electric vehicle? The loans.com.au Clean Green Car Loan may be a good choice! This loan offers an extremely low fixed rate of 5.79% p.a. (6.91% p.a. comparison rate*) and comes with flexible repayment options, such as the choice of a weekly fortnightly or monthly repayment schedule and the ability to make extra repayments. Customers can borrow between $5,000 and $100,000 and pay it back between three to five years without worrying about paying ongoing service fees. Just bear in mind, there is a hefty $400 application fee and you may face a $700 charge if you pay off your debt ahead of time. Also remember, there are no redraws allowed on this loan.

Compare New Car Loans

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 91 car loans.
Last updated 23 November 2024 Important disclosures and comparison rate warning*
  • New Car Loan

    Fixed, Secured, $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 new car loan of up to $100,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. 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.

    Compare
    Go to site
    Details
  • New Car Loan - Special

    Including Demo, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    8.39% p.a.
    9.50% p.a.based on $30,000
    over 5 years

    Low fixed car loan rate for purchasing new and demo vehicles from dealers. There is no monthly or ongoing fees and early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^. 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 8.39% would cost $37,714.40 including fees.

    Compare
    Find out more
    Details

Not all car brands offer EVs downunder at the moment, but some do. 

Here are a few carmakers that are selling electric cars to Aussies right now: 

  • MG 
  • Hyundai
  • Nissan 
  • Renault 
  • Mini Cooper 
  • Kia 
  • Mazda 
  • Tesla 
  • Lexus 
  • BMW
  • Mercedes-Benz
  • Polestar (Volvo) 
  • Volvo 
  • Jaguar
  • Audi
  • Porsche 

The options for green cars in Australia are constantly expanding. There are many new additions to the market planned for the coming year.

Looking to find out more about low interest car loans before sealing the deal? Head over to our car loans comparison page for more top providers as well as handy guides, tips and the latest car news!

* 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.

^See information about the Mozo Experts Choice Personal Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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