Fuel prices up 14% in 2023: Is it time for drivers to go green?
Fuel prices continue to rise and August was no exception for Aussie drivers.
Prices shaped up to be 14% more expensive this August than 12 months ago, according to the Australian Bureau of Statistics.
If you use unleaded, there has been a 17 cents per litre increase to the average price. If you are a diesel lover you could be looking at paying an extra 26.6 cents per litre at your next fuel top up.
With price hikes like these it has left people wondering if it’s time to bite the bullet and leave petrol in the past like the dinosaur bones it’s made of.
Electric vehicles (EVs), while they can be a hefty cost upfront, do eliminate the need to pay for fuel top ups since they are battery powered. However, how much money are you really saving by making the switch to electric?
EV cost savings can be quite high
Well, an EV has the potential to help you save up to 70% of the money you would be spending on fuel, and around 40% of the money you would be spending on car maintenance, based on information from Transport for NSW.
As an example, a car travelling an average of 13,700 km per year could save up to $1,200 a year on fuel, if the EV is able to charge overnight on an off-peak tariff.
A big setback for Aussies who want to make the leap to an EV is the cost of the vehicle itself. Not everyone has the money upfront to make such a big investment - but this is where a car loan could be a good option.
Both standard and green car loans are available when looking at electric vehicles. A green car loan tends to have a lower interest rate than a standard car loan, but does have some limitations on the make and model of the car that can be bought using the loan.
If you are looking at using a car loan to make your purchase, the amount you are able to borrow is generally based on your income and how much you can afford to repay. Typically, car loans range from $10,000 to $100,000 depending on the lender and your circumstances.
Currently in the Mozo database the average interest rates for a standard car loan is sitting at 7.32% for a new car, or 8.08% for a used car. Alternatively, you could opt for a green car loan, with some of lowest rates at the moment sitting at a variable rate of 5.19% p.a. (6.32% p.a. comparison rate*) for Community First Bank’s Green Car Loan.
If you are interested in checking out some car loans, here are some of our editor’s picks for best electric vehicle car loans, or compare car loan providers down below to find a rate that suits your needs.