Green car loans

Find out if you can get a better deal on an eco-friendly car and compare loans now.

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With the rise of hybrid and electric vehicles, it's never been easier to 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, how to apply, and compare loans below.

Compare green car loans

Updated August 22nd, 2019
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
From 4.99% (fixed)
5.54%
$5,000
3 to 5 years
$400
$0
You'll receive a fixed rate of 4.99% p.a.
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment. Note: You will receive a 0.7% rate discount if you use an eligible low emission vehicle.
6.45% (fixed)
6.66%
$1,000
1 to 7 years
$150
$0
You'll receive a fixed interest rate of 6.45% p.a., if you're approved
Finance a new or used vehicle up to 7 years old. Waived establishment fee for green and 5-star ANCAP vehicles. Note: You will receive a 0.7% rate discount if you apply for a low-emission vehicle.

Compare up to 4 providers

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.

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

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.

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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Car Loan Offers

Important Information*
Logo for IMB New Car Loan
IMB New Car Loan

You'll receive a fixed rate of 5.49% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.

Logo for Latitude New and Used Car Loan
Latitude New and Used Car Loan

You'll receive a fixed rate of 6.99% p.a.
Apply for a loan from $5,000 to finance a new or used car. Flexible repayments and options to finance a classic car.

Logo for RACV New Car Loans
RACV New Car Loans

You'll receive a fixed rate from 5.69% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees. Note: Product only available to residents of Victoria.

Logo for Stratton Finance New Car Loan
Stratton Finance New Car Loan

You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $150,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.

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