Fuel prices up 14% in 2023: Is it time for drivers to go green?

By Paige Sutton · · 2 min read
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Man filling up car with petrol

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. 

Compare Car Loans

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Last updated 24 November 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 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.

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  • Used Car Loan

    Interest rate
    comparison rate
    Monthly repayment
    8.49% p.a.to 16.99% p.a.
    9.21% p.a.to 17.77% p.a.based on $30,000
    over 5 years

    Competitive interest rates for vehicles up to 20 years at beginning of loan term. Maximum loan term of 7 years. No ongoing fees. Dealer/private sale acceptable.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 8.49% would cost $37,420.08 including fees.

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    Details
  • 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.

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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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  • Any Age Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    10.69% p.a.
    10.97% p.a.based on $30,000
    over 5 years

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 10.69% would cost $39,053.66 including fees.

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    Details
  • Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    9.99% p.a.
    10.21% p.a.based on $30,000
    over 5 years

    Repayment terms from 1 year to 6 years. Representative example: a 5 year $30,000 loan at 9.99% would cost $38,385.82 including fees.

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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.

^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.