Electric Car Loans
Find the best loan deal for your electric vehicle with Savvy.
Buy your electric car the right way with Savvy
Car loans for electric vehicles (also known as EV car loans) and hybrid vehicles are becoming increasingly common as Australians make the switch to more eco-friendly modes of transport to help the planet. Lenders are, in turn, now offering a suite of products designed specifically for these cars which make purchasing them under finance more affordable.
If you want to find the best electric car loan for your needs in Australia, you can apply with Savvy today. We’re partnered with a variety of lenders offering green and electric car loan products, giving you more options to help you save. Your dedicated consultant will be with you every step of the way to help ensure your new car is signed, sealed and delivered promptly, so get a quote with us today.
The features and benefits of electric car loans
You can secure a low interest rate on your electric car loan deal through competitive lenders, but you may find your rate is even lower if you lock in a green car loan.
As with any other car loan, you can choose your preferred repayment period of between one and seven years in line with whichever you’re most comfortable managing.
There’s no need for you to put forward any funds upfront as part of your electric car loan agreement, as you can borrow the full value of the vehicle.
You won’t be solely limited to brand-new cars bought through a dealership, however, with financing also available for used vehicles purchased through private sale.
Applicants can rely on multiple jobs and sources of income when applying for their loan, whether they’re employed full-time, part-time, casually or self-employed (or a combination).
With a fixed interest rate on your car loan, you can more accurately budget around your repayments well into the future and not worry about rate rises impacting you.
Why Australians take out green car loans through Savvy
The Savvy EV car loan application process
What our customers say about their finance experience
Electric car loans explained further
How do electric car loans work?
An electric car loan in Australia is essentially the same as any other standard car loan in terms of its structure and how it functions. 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 instalment||Overall cost|
As can be seen from the table above, you’d stand to save almost $1,750 by taking out a loan with a small interest discount and cheaper 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 their own set of criteria and/or list of cars which quality for financing under an electric or green loan. These loans are often reserved for brand-new electric vehicles, rather than used, and may discount certain electric models. This doesn’t mean you won’t be able to find an affordable loan deal to purchase your chosen electric car, though; your Savvy consultant will compare offers on our panel to find the best 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 deal for your needs. 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 of dollars.
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 employed in a stable job
- You must be earning a consistent income of at least $20,000 to $26,000 per year
- You must be an Australian citizen, permanent resident or, in some cases, a valid visa holder
- You must have a good credit history (options exist for borrowers with bad credit, however)
Whether green 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.
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.
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 which works with your car (which your Savvy consultant will help you do).
The pros and cons of buying an electric car
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.
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.