A green car loan guide
Compare green car loans and find out if it can help you save money on a loan plus do your bit for the environment.
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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
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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.
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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CarClarity Car Loan
Find the best car loan for your circumstances with CarClarity. Rates start from just 3.35% p.a. and borrowers can apply for loans from $10,000 to $250,000 for new and used cars.
Great Southern Bank Fixed Rate Car Loan
If you’re in the market for a new car, the Great Southern Bank Fixed Rate Car Loan may be able to give you the funds you need. With the security of a fixed rate and flexible repayments, this loan might be what you need to own your new set of wheels.
Business car loans
If you're after a business car, compare your vehicle finance and car loan options and get your business on the road.
Car Loan OffersImportant Information*
You'll receive a fixed rate of 4.88% 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.
You'll receive a fixed rate of 4.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
You'll receive a fixed rate from 4.99% 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.
You'll receive a fixed rate of 4.99% p.a.
Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
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