The first bank of the “big four” launches an electrified car loan


Westpac has just launched a new loan for hybrids and electric vehicles, but there are offers for those who want to look.

One of Australia’s ‘big four’ banks has announced a new financial product for low-emission vehicles.

Westpac is the first major bank to launch a hybrid and electric car loan, offering great rates for those looking to upgrade to an electrified vehicle.

The bank said the new loan was designed to help Australians looking to move away from traditional petrol and diesel cars, especially in the current climate of soaring fuel prices.

“It’s meant to support [electric vehicle] and hybrid growth, but it’s also part of a much larger plan by the bank to help Australia reduce carbon emissions,” said Steve Rubenstein, managing director of consumer finance at Westpac.

In a survey conducted by the bank, it found that 78% of respondents wanted an electric vehicle (EV) to save on fuel costs, 69% wanted lower running costs overall, and 60% wanted to cut costs. carbon emissions.

However, while Westpac offers a fixed annual rate of up to 4.99% for up to seven years, the comparison rate – the government-imposed rate that includes all fees and charges associated with the loan – is much higher. raised 6.21 percent per year.

While most of these financial products are still relatively new to the market, Bendigo Bank recently celebrated the 20th anniversary of its green loans.

Bendigo offers a reduced fixed interest rate of 4.99% on guaranteed loans for vehicles with CO2 emissions below 110g/km, compared to 5.35% per annum.

Macquarie Bank seems to offer one of the best loans for purely electric cars with an interest rate of 3.99% per annum – and with a comparison rate to match.

Pepper Money also offers a fixed interest rate and 3.99% comparison rate for electric cars, claiming to be responsible for financing one in nine electric vehicles sold in Australia and winning the Green Excellence for Electric Vehicle award. Loans” from Canstar in 2022.

The difference between the Westpac loan and the Macquarie or Pepper loan could be thousands of dollars over the term for someone looking to buy a vehicle like a Tesla Model 3.

Another good deal at the time of writing comes from Driva, with a fixed rate of 3.49% and a comparison rate of 4.19 per annum for those with good credit looking to buy a battery car. also has a favorable deal, offering a floating rate of 3.14% with a comparison rate of 3.68% – but this is expected to increase as the Reserve Bank of Australia raises the cash rate.

Bank Australia offers a low-emission car loan for hybrids and electric vehicles, with a fixed interest rate of 5.45% and an equivalent comparison rate, while RACQ Bank offers a similar product for Queenslanders at 5.59%.

Before making a decision, it is strongly recommended that you speak with a financial advisor to find out which product is best suited to your situation.

Ben Zachary

Ben Zachariah is an experienced automotive writer and journalist from Melbourne, having worked in the automotive industry for over 15 years. Ben was previously an interstate truck driver and completed his MBA in finance in early 2021. He is considered an expert in the field of classic car investing.

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