Green Car Loan – Finance for EVs and Hybrids

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Green Vehicle Uptake Picks Up Speed in Australia

While Australia was slower than many other countries in the uptake of green, environmentally friendly vehicles, the pace of uptake has picked up. Based on the monthly car sales figures in late 2022, the sales in this category has shown an increase. The leading manufacturer in the space, Tesla, even making it into the top 20 selling brands in one month. As Governments and stakeholders address issues around refuelling infrastructure and with import tax cuts on some models, the affordability and attraction of buying hybrid and electric vehicles is increasing. Pricing has been a barrier to entry into the market for many buyers. Putting the focus on green car loans to make these vehicles more affordable to more people. Jade Car Loans assists buyers of hybrids and EVs with cheaper interest rate motor vehicle finance and individually negotiated car loan repayments. Facilitating the possibility of owning a green car for many individuals and business operators.

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Navigating the Loan and Broker Landscape

Simply answer the questions that follow to see if you qualify:

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Hybrid and Electric Vehicle Market

The range of hybrid and electric vehicles available in Australia is expanding rapidly. More and more manufacturers are including at least one green car in their line-up. Several brands have multiple options available to suit a range of buyers. Some manufacturers have made decisions to go completely electric by a certain year. Tesla is considered the world leader in the space but EVs are available in many price ranges and body types. Models in all sizes of SUVs, hatches, work vehicles and sedans are available from manufacturers including Audi, BMW, MG, Kia, Hyundai, Porsche, Polestar, Toyota, Nissan amongst others. Range on a full charge has been a barrier to purchase but this appears to be being addressed by manufacturers. The growth in charging stations, especially in regional areas, will no doubt also make green cars a more workable option.

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Buying an Electric Vehicle in Australia

Buying an electric vehicle (EV) can offer significant cost savings, environmental benefits, and a range of options in terms of price and model. Dealerships in Australia welcome inquiries and offer pre-approved finance for green car loans. Browsing for available models can be done online through various websites.

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Green Car Finance

Finance is available for all types of EVs and hybrids for both individuals and business enterprises. The same personal car loan types and business vehicle finance products apply to these purchases as for fossil-fuel vehicle purchases. Personal Car Loans apply for individuals purchasing vehicles for personal or private use. Business vehicle finance products are for financing vehicles that are to be used within a business and meet ATO criteria for this purpose. In order to be eligible for business finance, applicants must hold a current ABN.

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This calculator is solely for illustrative purposes and is intended as a guide. It relies on the information you provide and should not be considered a quote or a pre-qualification. The interest rate offered to you may vary from the one shown here, depending on your individual circumstances. Repayment figures do not account for any lender fees and charges.
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Unsecured Personal Green Car Loans

Where for a reason the vehicle is not offered as security for the finance or not accepted, buyers may consider an Unsecured Personal Loan. This type of loan may have a fixed or a variable interest rate which is typically higher than for a Secured Car Loan. Buyers are welcome to speak with one of our consultants prior to purchase to discuss which personal green car loan will be most appropriate.

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Electric Car Loans – Personal Secured Car Finance

The Secured Car Loan is the most widely used form of finance for all types of new cars for private use, including electric vehicles and hybrids. The format of this type of loan follows a general secured loan structure across the market. But the interest rate and comparison rates vary across the lender market.

Through our broker-style lender service, Jade Car Loans secures the cheapest interest rate available to suit the requirements and application details of our customer. The vehicle becomes the security for the loan with this type of finance.

The loan is repaid in equal monthly car loan repayments over the fixed loan term.

Features of a Secured Green Car Loan include:-

  • Fixed Interest Rate
  • Fixed Loan Term
  • Fixed Car Loan Repayments
  • Additional payments allowed, minimal payout fees where the loan is finalised early.
  • Comprehensive insurance is required
  • Consumer finance product regulated through ASIC with Responsible Lender Guidelines applicable
  • Applicants must be above the age of 18 years
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Jade Finance handles every loan individually, please feel free to contact us via email
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Is EV a future?  FAQ Arrow

The take-up of EVs, electric vehicles, has been slower in Australian than in many overseas countries but has shown signs of increased sales in recent monthly car sales figures. A concerted effort is being made by government and others to reduce emissions to meet targets and the auto sector is seen as a major way to achieve that. Manufacturers are introducing new models, increasing range and infrastructure is being addressed to support EV owners. Pricing has been an issue for many buyers as has been availability of recharging and range. Issues which are being addressed.

What is EV and why is it important?  FAQ Arrow

An EV is an electric vehicle. They are available in many body types and across a range of prices. Essentially, an EV is a vehicle powered by a battery. The battery is recharged by plugging in at a charging station. A number of different variants come under the general ‘EV’ umbrella including PHEVs which are plug-in hybrid electric vehicles. These vehicles use both battery and petrol. The battery power suited for short trips while the traditional combustion engine can be used for longer trips. The move to EVs is seen as an important way to reduce carbon emissions and address climate change on a global level. EVs

Is a green car loan worth it?  FAQ Arrow

Purchasing a green car – a fully battery-operated EV or a hybrid, is seen as a positive move in addressing climate change by reducing emissions. The price of green cars has been higher than for traditional fuel vehicles, but the financial benefits are seen in the reduced fuel costs and lower car servicing and maintenance expenses. Securing a green car loan at the cheapest available interest rates can result in a cheaper overall finance package and cost of the EV. An outcome which may be seen as a valuable investment for the buyer.

How to get the best rate on a green car loan?  FAQ Arrow

The interest rate on a green car loan will be calculated, assessed and offered on the same criteria and guidelines as for other finance for traditionally powered vehicles. To get the best rate on a green car loan, buyers can address several aspects of the finance application process. The interest rate on green car loans will vary across the lender market. Engaging a finance broker to assist by covering off on many lenders to source the best rate may assist. Applicants can also address issues with their credit profile as lenders typically offer the best rate to applicants with a good credit score.

Can you buy an EV with a business car loan?  FAQ Arrow

Yes. The full range of business car loan products is available for the purchase of an EV. To be eligible, applicants must have an ABN and the vehicle must meet ATO criteria in regard to being used in the business for primarily business purchases. The business car loan selection includes Chattel Mortgage, Leasing, Commercial Hire Purchase and Novated Car Lease with Salary Sacrificing. The suitable of finance product will depend on the accounting practices and financial objectives of the business, and the approach to taxation and balance sheet. It is highly recommended that business owners consult with their accountant in respect to the choice of business car loan type.

Can you buy a green car with a secured loan?  FAQ Arrow

Yes. Secured loans are available for both private buyers and businesses that are purchasing a green car and other electric vehicles. For buyers purchasing a new green car for personal/private use, the Secured Car Loan is the most widely used type of car loan for all types of new cars and many second- hand vehicles. With a secured loan, the vehicle is accepted by the lender as the security or guarantee against the loan. With many applications, no further security by way of assets or property is usually required for the loan.

Is it easy to get a loan for a green car?  FAQ Arrow

Many banks, finance companies and motor vehicle finance brokers offer the facility to apply for a loan for a green car. The process for making a loan application can be relatively easy with many lenders offering online applications. If a personal car loan is required, lenders and applicants must adhere with the consumer finance laws. The application would require details of income, employment, financials and other information. Lenders will assess each application individually and review the credit profile. Applicants with a good credit score are typically offered a better rate. For individuals with a poor credit profile or bad credit issues, getting a loan for a green car may be more difficult with some lenders. Using a finance broker may assist in facilitating the process.

Do I need comprehensive car insurance?  FAQ Arrow

Yes. Comprehensive car insurance is required to be taken out as a condition of secured car loans and motor vehicle finance contracts. This applies to Personal Secured Car Loans as well as business vehicle finance products – Chattel Mortgage, Leasing and Commercial Hire Purchase. New and used vehicles that are accepted as security for car finance must be fully covered by insurance. Lenders will request the insurance policy details and an update that the policy has been renewed each year until the finance is finalised.

How much do electric vehicles cost?  FAQ Arrow

The price range of electric vehicles is quite extensive while most are higher than the prices for new petrol-powered vehicles. Most manufacturers are adding new models to their ranges with each new year. The selection varies from lower priced vehicles such as hatches through family sedans and the small and medium SUVs, right up to the luxury, high-end price range for prestige brands. With cuts to import taxes on some electric vehicles, the price is expected to be reduced. As demand increases over time, pricing may also come down. The purchase price of electric vehicles may be offset by securing cheaper EV finance with better interest rates.

Can I get a loan for a hybrid vehicle?  FAQ Arrow

Yes. A loan for a hybrid vehicle is readily available through many banks, lenders and brokers that off motor vehicle finance. The type of loan required will depend on if the hybrid vehicle is for personal or business use. Private purchases of a new hybrid vehicle may be best-suited to a Secured Car Loan. Purchasers of business vehicles can select from the range of products including Chattel Mortgage, Leasing and Commercial Hire Purchase. The type of business finance will depend on the set-up of the business and accounting matters. Loans for hybrid vehicles are available for many types of buyers including those setting up new businesses and those with credit issues.

What are the car loan options for an electric vehicle?  FAQ Arrow

The car loan options for an electric vehicle vary for private and for business buyers. For private buyers the Secured Personal Loan may be seen as the most suitable car loan option. With this car loan, the electric vehicle is accepted as the security for the car loan. A fixed interest rate is typically applicable, as is a fixed loan term. This results in fixed monthly car loan repayments. The business car loan options for an electric vehicle include Chattel Mortgage, Commercial Hire Purchase and Leasing. Low Doc and No Doc car loan options for businesses without all the documents to complete a business application are available through specialist motor vehicle finance lenders and brokers.

Are there any government incentives to buy an EV?  FAQ Arrow

The government incentives to buy an EV will vary with timing and eligibility. Several state governments have introduced incentives for EV buyers via a cash rebate system. In the past, these programs had a limited time frame but new incentives may be introduced in the annual state budgets. State budgets are handed down in March-June each year and vary for each state or territory. The Albanese Government introduced a cut to the import duty on some EVs in order to reduce the purchase price of new vehicles. Prospective buyers would be advised to check the current incentives to buy an EV prior to purchase and ensure they meet the eligibility criteria. The incentives may vary from state to state.

Which electric car loan is best?  FAQ Arrow

The opinion on the which electric car loan is best may be personal or subjective. For many buyers the best loan will be the electric car loan which has the cheapest interest rate and which has been individually sourced and negotiated to deliver an outcome which suits their budget. The interest rates on electric car loans will vary across the motor vehicle finance market. Some conditions attached to individual electric vehicle loans may also vary depending on the details in the application. Buyers with a good credit score can be offered a better interest rate. Using a motor vehicle finance broker can assist in securing better rates and a better electric car loan.

 

Business Loans for Electric Vehicles

Businesses purchasing EVs for the operations can select from our portfolio of finance products.

  • EV and Hybrid Vehicle Leasing
  • Chattel Mortgage for Electric Vehicles
  • Commercial Hire Purchase
  • Novated EV Lease with Salary Sacrificing

The criteria for deciding which is the most appropriate finance product is the same for EV finance as for finance for other vehicles. The issues relate primarily to the accounting practices and financial objectives of the business operation. Business owners are encouraged to engage with their accountants on this matter.

Chattel Mortgage is seen as best-suited to businesses that utilise the cash accounting method and Leasing for those that use the accruals method of accounting.

Treatment of GST varies with the full amount claimable on the next BAS with Chattel Mortgage. GST is applied to the monthly finance payments with Leasing.

Lease payments are fully tax deductible while the EVs purchased with Chattel Mortgage finance are depreciated in line with the ATO schedules. When available, accelerated asset depreciation measures may apply to Chattel Mortgage financed electric vehicles and hybrids.

Novated EV Lease with Salary Sacrificing involves an employer purchasing a green car for an employee and the employee sacrifices part of their salary to cover the finance and costs.

 

 

Achieving Workable EV Finance for Business Operators

When investing in new EVs, one of the key objectives may be to reduce fuel costs and achieve a better bottom line. We assist business owners to achieve the most workable finance options by sourcing the cheapest interest rate loans and negotiating on the structure of the loan.

The structure – finance term and balloon payments, can be critical to achieving a workable car loan repayments amount. We negotiate with our lenders to ensure the overall finance package, not just the interest rate, will work for the business.

 

 

EV Finance Interest Rates

The interest rates offered on all types of motor vehicle finance including green car loans, are determined primarily by the creditworthiness of the loan applicant on conjunction with some issues of the vehicle itself. The vehicle issues are whether the vehicle is new or used. Used vehicle finance may attract a higher interest rate.

The interest rates on EV finance advertised by lenders, including Jade Car Loans, will typically be for new vehicles and for loan applicants that have a good credit profile. Personal car loans, being consumer finance, will also have a Comparison Rate.

The Comparison Rate is the rate calculated for a specific purchase and when certain fees and charges have been included. Rates vary across the market and private buyers can refer to our Lender Comparison Table to see the current interest rates and comparison rate offered by a selection of lenders.

While interest rates may currently be the same for all types of vehicles, EV buyers may realise savings in fuel costs and may be eligible for government rebates.

 

 

Business Vehicle Finance Rates

The interest rates vary across the products available for business vehicle finance. Chattel Mortgage is typically lower than Leasing due to the structure of the finance. We negotiate with lenders to achieve the cheapest rates across our portfolio with all finance individually sourced.

While the interest rate is integral to the cost of the green car finance and hence the cost of the EV, the tax deductions available can be considered to offset the costs to the business of the car loan repayments.

 

 

No Deposit EV Loans

No deposit car loans are a reference to the full purchase price of a vehicle being included as the total loan amount. Effectively, the buyer does not make a down payment. Most dealers will of course request some form of a deposit to confirm the sale, but this is often only a holding deposit and may be refunded on settlement.

Including the full price in the loan can be attractive to many buyers. But opting not to pay a deposit results in a higher loan amount which then means higher car loan repayments. Lenders may also have guidelines around what they will approve in regard to the total loan amount. This decision would be made on an individual basis.

 

 

Cash Rebates, Subsidies and Deductions

When purchasing hybrids and electric vehicles, buyers should refer to their state government for any current cash rebates and subsidies to buyers of hybrids and electric vehicles. NSW and Victoria have both introduced such measures at certain periods. Buyers should check the current offers.

Apply for a Green Car Loan

Jade Car Loans makes the entire process of applying and sourcing finance for hybrids and EVs straightforward, efficient and easy. You can apply over the phone with one of our consultants and commence the application process straight away.

Alternatively, you can request a quote and discuss the options. Pre-approved car loans, which are obligation-free, are a great way to have finance confirmed and approved before deciding on which green car to purchase.

  • Quick EV Car Loans Quotes
  • Fast Approvals for Green Car Loans
  • Prompt Settlement
  • Saving you time and hassle and ensuring the cheapest interest rates.

Our broker style lender service is available for both personal car loans and business vehicle finance. To discuss green car loans, call Jade Car Loans and speak with one of our consultants or request a quote.

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