How much do electric cars cost in Australia?
Ready to join the electric revolution? Upgrading from your petrol-powered car to an electric vehicle (EV) may seem daunting, but it may be worth it in the end when it comes to saving on fuel, as well as the positive environmental impact. Getting an idea of how much you’ll be expected to pay for an electric car is essential when it comes to working out a budget and sourcing vehicle finance.
Keep in mind that car prices change regularly depending on a wide range of market factors. It may not be easy to wait for the “perfect” time to buy an EV, so you could consider comparing EV prices and green car finance options to work out the best choice for your household budget and personal goals today.
According to Which Car, the cheapest new EVs in Australia start from around $40,000 drive-away, but most models are somewhere in the $60,000 to $90,000 range.
Most of the more affordable EVs on the Australian market tend to be smaller models, which may not suit every household.
Top 10 cheapest EVs in Australia
- BYD Dolphin – from $38,890
- MG 4 – from $38,990
- GWM Ora – from $39,990
- MG ZS EV – from $44,990
- BYD Atto 3 – from $48,011
- Nissan Leaf – from $50,990
- Fiat 500e – from $52,500
- Cupra Born – from $59,990
- Volvo EX30 – from $59,990
- Peugeot E-2008 – from $59,990
Source: WhichCar. Models and prices are accurate at time of writing and exclude on-road costs and dealer delivery fees.
On the other hand, some of the most expensive EVs currently available in Australia come from the category of large sedans and liftbacks.
Top 10 most expensive EVs in Australia
- Mercedes-AMG EQE 53 4Matic+ sedan – $213,574
- BMW i5 M60 – $215,900
- Mercedes-Benz EQS 450 4Matic liftback – $219,900
- Audi RS E-Tron GT – $246,875
- Porsche Taycan GTS sedan – $249,600
- Porsche Taycan Turbo sedan – $293,900
- BMW i7 xDrive60 M Sport – $306,900
- Mercedes-AMG EQS 53 4Matic+ liftback – $327,075
- BMW i7 M70 – $344,900
- Porsche Taycan Turbo S sedan – $365,100
Source: WhichCar. Models and prices are accurate at time of writing and exclude on-road costs and dealer delivery fees.
How can you finance an EV purchase?
Because even cheaper EVs tend to have higher price tags than their petrol-powered equivalents, it may not be easy to buy an EV outright with cash. While many car dealers offer finance, there are also other options that may be worth considering, as they may be cheaper and/or better suited to your financial situation and personal goals.
For example, you could use a new car loan to buy an EV, using the EV’s value as collateral to secure the loan. This may let you enjoy a lower interest rate on your car loan, making your financing that little bit more affordable, though you risk losing the EV if you’re unable to keep up with the repayments.
Buying an EV may also qualify you for a green car loan, which often have even lower interest rates than other car loans, but have specific eligibility criteria around the vehicles you can buy with them. Before applying for a green car loan, ask the lender for information about how it determines a vehicle to be ‘green’ or ‘eco’ and how it contributes to emissions reduction and environmental responsibility.
If you’re planning to use an EV for work purposes, there may be some extra finance options available to you, such as a chattel mortgage, commercial hire purchase, car lease, or novated lease. Each of these options may have different advantages and drawbacks, and may affect your tax deductions, though you must be using the EV for business purposes.
Your credit score may affect the interest rate you’re offered on a car loan for an EV or any other vehicle. You can check your credit score for free to get a better idea of how lenders may view you as a borrower, and to get a better idea of the types of car loans you may qualify for. If your credit score isn’t the best, you could consider taking some time to try and improve your credit score before applying to an EV loan.
It’s also important to remember that you’ll also need to budget for your new EV’s ongoing costs. According to Transport NSW, EV’s can potentially save you up to 70% on fuel (which could amount to an annual saving of $1000 to $1200) and 40% on maintenance, EVs can also cost more to insure than their petrol-powered equivalents. Be sure to carefully compare car insurance policies before making a decision.
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Product database updated 09 May, 2024
