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Westpac drops new low-rate car loan for electric vehicles

Posted: 19 May 2022 4:15 pm
News
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Westpac has announced a lower rate car loan specifically for customers who purchase a new or used hybrid or electric car.

The car loan rates start from 4.99% p.a (comparison rate 6.21%*), compared to Westpac's standard car loan rate that starts from 6.49%.

To be eligible for the lower rate, customers must:

  • Purchase an eligible hybrid or electric vehicle purchase
  • The car must be either new, or second-hand, up to 7 years old
  • Borrow between $10,000 and $100,000
  • Secure the car loan against the vehicle

If you were to purchase an EV with a loan of $50,000 over 5 years, the difference in your monthly repayments would be:

  • $943 at 4.99%, compared to
  • $978 at 6.49%

That's a saving of $35 a month, or $420 a year.

This is a great saving – but how does it compare to other offers in the market? NRMA already offers new car loans from 4.99% (comparison rate 5.69%), and loans.com.au's variable green car loan starts at just 3.14% (comparison rate 3.68%).

Calculate the cost of your car repayment based on your loan size here

Westpac's new loan comes after the Big 4 bank conducted consumer research revealing that 70% of Australians plan to own a hybrid or electric vehicle in the future, and 34% of petrol and diesel drivers are considering making the switch to a more eco-friendly ride.

Chris de Bruin, Westpac Chief Executive, Consumer & Business Banking, said, the research also revealed that more than two thirds (67%) of Australians believe the cost of the car is the biggest barrier to owning a hybrid or electric vehicle.

"Given the recent increase in petrol prices, electric and hybrid vehicles appeal to the environmentally conscious, and the financially conscious too. We expect demand for these vehicles will continue to rise, with many Australians already planning to make the change," he said.

"We're seeing new government incentives, improved access to charging stations, and more manufacturers offering hybrid and electric vehicles, which will help accelerate the transition."

Research from the Australia's Electric Vehicle Council reveals the average Australian household currently spends $3,700 a year on petrol and diesel.

Not in the market for an EV or hybrid, but still want a cheap car loan? Compare cheap car loans from 3.25%

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