Electric Car Loans
Compare a variety of competitive loan deals for your electric car purchase with Savvy today!
Fact checked
Electric vehicles (also known as EVs) are becoming increasingly common as Australians make the switch to more eco-friendly modes of transport. According to the Federal Chamber of Automotive Industries (FCAI), VFACTS data revealed that 7.2% of all cars sold in Australia in 2023 were battery electric.
Lenders are, in turn, offering a suite of products designed specifically for these cars which can make purchasing them more affordable. If you’re in the market for an EV, you can compare a range of electric car loans in one place with Savvy. We’re partnered with a suite of trusted Australian lenders to give you the best chance of finding a great deal for your car. Get started with a free, no-obligation quote today!
How do electric car loans work?
Electric car loans (commonly referred to as green car loans) in Australia are essentially the same as any other standard car loan in terms of their structure. However, in some cases, those buying electric or hybrid models (or select low-emissions vehicles) are able to qualify for a specialised car loan product which offers a discount on interest and fees.
This can be an important factor to consider in the process, as securing such a discount can help you save hundreds over the life of your loan agreement. Take the following example to compare a standard and electric car loan worth $60,000 over five years:
| Type of loan | Interest rate | Establishment fee | Ongoing fee | Monthly repayment | Overall cost |
|---|---|---|---|---|---|
|
Standard |
7.00% p.a. |
$300 |
$10 |
$1,195 |
$72,241 |
|
Electric |
6.50% p.a. |
$0 |
$0 |
$1,174 |
$70,439 |
As you can see, you’d stand to save almost $1,800 by taking out a loan with a small interest discount and waived establishment and ongoing fees, making it one of the best ways to finance your car purchase.
It’s also important to mention that these loans can sometimes come with stricter requirements relating to vehicle eligibility. Each lender will have its own set of criteria and/or list of cars which qualify for financing under an electric car loan.
Even if your chosen car doesn’t make the cut, though, this doesn’t mean you won’t be able to find an affordable loan deal to purchase your chosen electric car. Your Savvy consultant will compare offers on our panel to find the best available option for your situation.
Which electric car loan features are important to compare between lenders?
As is the case with any car loan, it’s crucial to compare your options thoroughly to help you secure the best available deal for your situation. However, when you apply with Savvy, your consultant will do the heavy lifting for you, saving you valuable time in the process. Some of the key areas to consider are:
Interest rate and fees
Of course, it’s important to keep an eye on the various costs which apply to car loans. Look for the lowest interest rates and fees available on loans which otherwise meet your needs and enjoy savings worth up to hundreds, if not thousands, of dollars.
Eligibility criteria
Each lender has different criteria when it comes to who is eligible to apply for a loan. However, the general points which apply include:
- You must be at least 18 years old
- You must be an Australian citizen, permanent resident or, in some cases, an eligible visa holder
- You must be employed in a stable job
- You must be earning a consistent income (generally at least $20,000 to $26,000 per year) which is enough to support your repayments
- You must have a good credit history (options exist for borrowers with bad credit, though)
Whether green car loans are offered
It’s worth looking at whether each lender offers specialised green or electric car loans or, more specifically, a rate discount for electric and hybrid vehicles.
Accepted vehicles
As mentioned, not all electric vehicles will qualify for rate discounts, so it’s important to check different accepted vehicle lists to find a lender that can work with your car (which your Savvy consultant will help you do).
Minimum and maximum loan terms
While you can repay the loan over between one and seven years, some lenders may require you to stick to a minimum of two to three years or a maximum term of five.
Repayment flexibility
It’s often worthwhile having the option to repay your car loan ahead of schedule, as doing so will reduce the amount of interest and fees you’d otherwise be liable to pay. Because of this, you might look for lenders who offer free additional repayments and low or no early exit fees.
The most popular electric cars in Australia: 2023
The following statistics are for the most recent completed year of 2023 (at the time of writing) and are obtained through the FCAI’s VFACTS data.
| Car make and model | Total new car sales |
|---|---|
|
Tesla Model Y |
28,769 |
|
Tesla Model 3 |
17,347 |
|
BYD Atto 3 |
11,042 |
|
MG MG4 |
3,134 |
|
Volvo XC40 Recharge |
2,846 |
|
MG ZS EV |
2,794 |
|
Polestar 2 |
2,463 |
|
Kia EV6 |
1,831 |
|
Mercedes-Benz EQA |
1,196 |
|
Volvo C40 Recharge |
1,103 |
Why Australians take out green car loans through Savvy
Convenient online application process
The process of applying for your loan is highly convenient, as you can complete your application and get approved from home.
More finance options, more savings
With a wide range of over 40 lending partners, we’ll have more options to compare to help you find the most affordable deal.
Quick application process
The application process can be completed from the comfort of your home and you could drive away in as little as 48 hours.
The pros and cons of buying an electric car
PROS
More environmentally friendly
The biggest bonus when buying electric or hybrid cars is the impact (or lack thereof) on the environment, with far lower emissions produced on the roads.
Save on petrol costs
Petrol can be a massive drain on your finances, particularly if you’re driving often, but buying electric means you won’t have to worry about it at all.
Able to be charged in your home
You can install a vehicle charger at home, saving you from having to search around for an outlet at service stations and maximising convenience in the process.
Less costly ongoing maintenance
Because electric cars don’t have a complicated engine under the hood or other parts present in petrol cars, you’re likely to save on ongoing maintenance work.
Tax and on-road cost discounts
Depending on where you live, you may be eligible for discounts or waivers on stamp duty and registration costs, as well as a higher threshold for the luxury car tax (LCT).
CONS
More expensive to purchase
As electric cars are still relatively new in the Australian market and not offered by all, or even most, manufacturers, you’re likely to pay a higher price for them.
Longer recharge time
While filling up your tank at the petrol station may only take a minute or less, charging your electric car could be an hours-long process in some cases.
Potentially greater distance limitations
Many electric vehicles aren’t capable of travelling very far without needing to be charged, with some only able to drive less than half as far as a standard car.
The Savvy EV car loan application process
Get a quick online quote and apply
Fill out a quote with us, after which you can apply formally if you choose to. Once your consultant has your application, they can get to work comparing offers.
Speak with your consultant
Your consultant will get in touch with you to discuss the best available option for your situation based on their thorough comparison of our lender database.
Have your application prepared and submitted
Once you’re happy with the loan on offer, your consultant will prepare your formal application and submit it to your lender for approval.
Receive formal approval and drive away
You can be formally approved in as little as one day, after which you can sign your loan contract, settle the agreement and own your new or used electric car.
What our customers say about their finance experience
Savvy is rated 4.8 for customer satisfaction by 3362 customers.
More common electric car loan questions answered
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