Going green? Here are some car options

couple in their eco-friendly car smiling together

Many Australians have begun to be more environmentally conscious. And after the latest Intergovernmental Panel on Climate Change (IPCC) report, many businesses have been looking for ways to be more green, too. This change can be made by adjusting one’s approach to basic finances, energy consumption or by making green purchases like solar panels, hybrid cars or electric vehicles (EVs).

Let’s focus on cars. As of January 31 2021, there are more than 23,000 registered EVs nationwide, according to the Australian Bureau of Statistics (ABS) latest Motor Vehicle Census.

While the numbers of EVs may seem high, when you compare it to the 20.1 million registered cards in Australia it is but a blip. Especially compared to Norway, which is projected to have no new sales of petrol and diesel-powered cars by April 2022, Australia is lagging behind in the green cars space.

What are my green car options?

Currently there are two types of environmentally friendly cars you might purchase in Australia: electric vehicles or hybrid vehicles.

Electric vehicles

EVs run on battery and electricity (like their namesake). They can also be quite expensive compared to your average fuel-run car, typically ranging from $43,900 to $200,000. 

And unlike your typical car that can pull up to a petrol station, EVs have to go to specialised charging stations. Unfortunately, these stations are not as readily available throughout the country especially in remote areas, so they are not ideal for long trips. However, if you live in a major city it’s quite easy to find charging stations - you can typically find them in big shopping centres or scattered about in different parts of the city.

Advantages of an EV:

  • An EV is cheaper to run than a fuel-run car. 
  • Typically it is also easier to maintain because it has less moving parts.
  • Cheaper to register. Some states offer discounts on stamp duty for purchasing an EV.
  • Creates less pollution thanks to its zero exhaust emissions.

Some popular brands that sell EVs are Tesla, Nissan, BMW and Volvo.

Hybrid vehicles

Hybrid cars have both an electric motor powered by a battery and an internal-combustion engine powered by petrol. A hybrid may use these two together for extra power or independently depending on the situation. For example, a hybrid will switch to the electric motor when you’re idling or driving at low speeds. These cars may start at $28,000 and can range up to more than $200,000.

Advantages of a hybrid:

  • Don’t always need to be charged with an external source, some hybrids can recharge using a typical household powerpoint. 
  • Cheaper to run and uses less petrol than a normal car. 
  • Creates less pollution than your average car.
  • Offers more driving range than an EV.

Some popular brands that sell hybrid cars are Toyota, Mitsubishi, Hyundai and BMW.

How do I fund an environmentally friendly vehicle?

Believe it or not, there are several green car loans in Australia. These loans are designed specifically for you to purchase an eco-friendly car and tend to have lower rates than other vehicle financing offerings. Much like other car loans, they tend to be secured, so the car you buy is collateral if you end up defaulting on your loan.

While green loans exist, it is important to keep in mind that you don’t necessarily need one to fund your purchase of an EV or hybrid vehicle. There are several low-rate new car loan options that may suit you better.

If you are looking to live a more environmentally friendly lifestyle and are looking to buy an EV or hybrid car, check out your green loan options or compare the low rate car loans below.

Car loan comparisons on Mozo - last updated 20 August 2022

Search promoted car loans below or do a full Mozo database search . Advertiser disclosure
  • New Car Loan - Special

    Home Owner Discount, Including Demo, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    4.74% p.a.
    5.29% p.a.based on $30,000
    over 5 years

    Low variable car loan rate for purchasing new and demo vehicles from dealers. Extra low rate for qualifying homeowners. Personalised loan amounts between $5,000 and $100,000. Flexible repayment options. Choose between the 3 to 5 year loan terms.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 4.74% would cost $34,154.23 including fees.

    Details
  • Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.25% p.a.
    6.87% p.a.based on $30,000
    over 5 years

    Available for all New and Used cars up to 7 years. A quick and easy, 100% online application with loans up to $75,000. No printing. No paper. No fuss. No monthly account keeping fees, no exit fees and no early repayment fees.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.25% would cost $35,258.67 including fees.

    Details
  • New Car Loan - Special

    Home Owner Discount, Including Demo, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.69% p.a.
    6.24% p.a.based on $30,000
    over 5 years

    Eligible for homeowners only. 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^.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.69% would cost $34,940.17 including fees.

    Details
  • Used Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    7.99% p.a.
    8.60% p.a.based on $30,000
    over 5 years

    Enjoy a quick application process and no monthly fees on NRMA used car loans. Finance also available motorcycles, caravans and motorhomes. Low fixed interest rates with terms of up to seven years. Plus, NRMA Blue Member benefits apply so you could enjoy even lower rates as an NRMA Member**.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 7.99% would cost $36,987.90 including fees.

    Details
  • Clean Green Car Loan

    New or Used, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    5.99% p.a.
    6.54% p.a.based on $30,000
    over 5 years

    No monthly or ongoing fees. Get a 0.70% discount on your car loan interest rate if you buy a qualifying green car. Winner of Mozo's Experts Choice Green Car Loan 2021 award^.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.99% would cost $35,190.67 including fees.

    Details
  • Secured Car Loan

    Fixed

    Interest rate
    comparison rate
    Monthly repayment
    7.09% p.a.to 14.99% p.a.
    7.93% p.a.to 13.88% p.a.based on $30,000
    over 5 years

    Low personalised rates, ideal for borrowers with excellent credit. No monthly account fees, no early payout fees, so you can pay off your loan sooner. Borrow between $5,000 and $79,000. Easy online application, receive a response in minutes and approved funds within 24-48 hours!

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 7.09% would cost $36,323.64 including fees.

    Details

^See information about the Mozo Experts Choice Personal Loan Awards

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