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Green Car Loans Australia

Compare green car loans before shopping for an electric or hybrid vehicle to ensure you're getting the best deal.

loans.com.au - Green Car Loan Fixed logo image

From

6.49 % p.a.

fixed rate

From

7.61 % p.a.

comparison rate

Rate dependent on risk profile

Promoted

After a hybrid or an electric car?

You can save money with a green car loan in Australia plus do your part for the environment.

Many lenders now offer better rates on car loans for vehicles that are considered environmentally friendly.

Find out how green car loans work, benefits, how to apply, and compare loans below.

Compare Green Car Loans

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Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
loans.com.au - Green Car Loan Fixed
Fixed3 - 7 Years $5,000 - $150,000
Interest Rate (p.a.)
6.49%
to 7.69%
Comp. Rate (p.a.)
7.61%
to 8.8%
Application Fee
$400
Monthly Fee
$8
Monthly Repayment
$633.15
Go to siteMore Info
You'll receive a fixed rate from 6.49% p.a. based on your risk profile
0.7% discount on the interest rate, applies on qualifying electric and hybrid car . Early payout available with no monthly or ongoing fees.

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What is a green car loan?

A green car loan is any vehicle finance option available for cars that are better for the environment, generally meaning those with lower than average emissions. These include hybrid and electric vehicles, as well as normal cars with noticeably better fuel efficiency.

Finder survey: Would Australians of different ages consider a green car loan to buy an EV?

ResponseGen ZGen YGen XBaby Boomers
No58.43%49.18%56.91%74.15%
Yes41.57%50.82%43.09%25.85%
Source: Finder survey by Pure Profile of 1113 Australians, December 2023

WATCH: How to save money on an eco-friendly vehicle

How does a green car loan work?

A green car loan effectively works the same as any other car loan. If you apply for a loan for a vehicle that meets the lender's definition of environmentally friendly, you will generally receive an interest rate discount of 0.5%-1% and may be exempt from certain fees.

In addition to a discounted rate, some lenders will also offset your carbon emissions for the term of the loan to help reduce your carbon footprint.

You will generally apply for a green car loan like you would any other car loan, and simply select the green car loan option during the application process.

How do I know which cars can be used on a green car loan?

While the list of eligible vehicles will vary by lender, a car may be eligible if it meets one or more of the following requirements:

  • It is a new vehicle
  • It is a hybrid or electric vehicle
  • It is more fuel efficient than the average car in its class

Some of the popular car models that may be eligible include:

  • Mazda 3
  • Ford Fiesta
  • Honda Jazz
  • Volkswagen Golf
  • Nissan Leaf
  • Tesla Model S
  • Tesla Model X

However, you will need to check with the specific lender to see if a certain vehicle is eligible, and not all versions of the same model will necessarily meet the criteria.

If you're just searching for a car that has a limited environmental impact, you can use the Government Green Vehicle Guide to find a vehicle.

What are the benefits of a green car loan?

  • Interest rate discount. Most green car loans offer you a reduced rate as part of the loan.
  • Saving on car running costs. As green cars are more fuel efficient, you will likely be paying less to drive your car.
  • Reducing emissions. Green cars also have lower-than-average CO2 emissions and help protect air quality and the environment.

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