Money Hack: How to save more when you buy an eco-friendly car

Posted: 25 May 2019 7:01 am News

There are more ways to save than just at the pump.

Many people buy an eco-friendly car to do their part for the environment or to save money on their petrol bills. But eco-friendly cars, which can be hybrid vehicles or electric vehicles (EVs), tend to be more expensive than standard petrol vehicles. Because of this hefty upfront cost you may be considering a car loan to make your eco-friendly car purchase. If you are, this is where additional savings can be had.

The hack

Lenders offer discounts on car loans when you use the loan to purchase an eligible eco-friendly vehicle. So, if you are planning to finance your vehicle purchase, you can save money by opting for one of these lenders. Currently, two lenders have offers available:

  • Beyond Bank

Beyond Bank offers interest rate reductions when you purchase an approved green vehicle. This includes rate reductions off its Low Rate Car Loan which already comes with a competitive rate of 7.99% p.a. According to Beyond Bank, a "green vehicle" is one that is either a hybrid or EV or has a greenhouse rating of seven or more.

  • Loans.com.au

Loans.com.au also has a special offer when you purchase a qualifying green car where you can receive a 0.7% discount on your car loan interest rate. Loans.com.au encourages you to get in contact to find out if your car qualifies, but said it is likely to if it is a new or demonstrator vehicle, is more fuel efficient than average for a car of its size and is a hybrid vehicle.

How do you know if your car is green?

Lenders will have their own criteria to determine if your car qualifies for discounts. However, 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.

Compare car loans for an eco-friendly car

Updated July 20th, 2019
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
5.64% (fixed)
5.99%
$2,000
1 to 7 years
$250
$0
Borrow as little as $2,000 at a competitive fixed rate
Finance a new car up to two years old. Competitive 5.99% p.a. rate available to all approved applicants.
From 6.99% (fixed)
8.1%
$5,000
1 to 7 years
$295
$10
Finance a range of vehicles including cars, motorbikes, boats and caravans.
Apply online to finance a new or used motor vehicle and receive a response in 90 seconds. You will receive a competitive tailored rate of between 6.99% p.a. to 14.99% p.a.
From 4.79% (fixed)
5.34%
$10,000
1 to 7 years
$400
$0
You'll receive a fixed rate of 4.79% p.a. with a comparison rate of 5.34% p.a.
Get access to over 20 providers to fund a new or used car.

5.69% (fixed)
5.97%
$25,000
1 to 7 years
$175
$0
Offset your interest with a Car Budget Account.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
From 4.99% (fixed)
5.54%
$5,000
3 to 5 years
$400
$0
Optional balloon payment available to reduce your repayments.
A competitive rate car loan suitable for a new cor used car.
From 5.99% (fixed)
6.69%
$5,000
1 to 7 years
$499
$0
Benefit from 5-hour pre-approval.
A competitive rate car loan from RACV with no monthly fees.
From 5.34% (fixed)
6.6%
$7,500
1 to 7 years
$459.20 (for private seller vehicles this fee is $608)
$8.90
Fixed or variable rates starting from 5.34% p.a.
Apply for up to $150,000 and have up to 7 year(s) to repay. You can use cash or trade in a vehicle to use as a deposit.
8.49% (fixed)
9.67%
$10,000
1 to 7 years
$250
$12
Use a new or used car as security.
A flexible loan thats lets you benefit from a car search tool as well as the option to borrow extra for on-road costs.
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$195
$12
You'll receive a fixed rate from 8.49% p.a. based on the value of your car
Get a competitive rate and apply for a larger loan up to $80,000 when you attach a new or used car as security to the loan.
From 5.71% (fixed)
6.57%
$1,000
1 to 7 years
$100 (from $100 to $500)
$10
You'll receive a fixed rate between 5.71% p.a. and 8.66% p.a. based on your personal credit history
A flexible loan to help you finance a car, motorbike or boat up to five years old.
5.49% (variable)
6.41%
$10,000
1 to 7 years
$250
$10
You'll receive a variable rate of 5.49% p.a with a comparison rate of 6.41% p.a.
Borrow from $10,000 to $100,000 for a new or used car with flexible payment options.

6.79% (fixed)
7.16%
$5,000
1 to 7 years
$265 ($175 Establishment Fee + $90 Security Administration Fee)
$0
Finance a new or used vehicle up to 7 years old.
Benefit from additional repayments, no ongoing fees and access to a redraw facility with this competitive loan from CUA.
From 7.99% (variable)
8.96%
$10,000
1 to 10 years
$200
$10
Your choice between secured or unsecured.
Apply for a loan up to $75,000 and benefit from loan terms up to 10 years.
6.45% (variable)
6.59%
$10,000
1 to 7 years
$100
$0
Apply for a loan up to $100,000.
Benefit from a flexible, variable rate to finance a car up to 3 years old with SCU.
From 5.99% (fixed)
6.69%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 5.99% p. a.
Purchase a new car with this loan and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
6.69% (fixed)
7.04%
$2,000
1 to 5 years
$250
$0
Secure this loan with a car and use the funds for any purpose.
Competitive 6.89% p.a. rate available to all approved applicants. Loan amounts up to $60,000 available.
From 6.25% (fixed)
6.95%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 6.25% p.a.
Finance a used car with NRMA and benefit from a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.

Compare up to 4 providers

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