A green car loan is a type of car financing specifically for eco-friendly vehicles. Lenders may define green car loans differently, but it’s generally accepted that eco-friendly vehicles are cars that produce less carbon dioxide emissions than traditional fuel-powered cars. Lower carbon emissions typically reduce a car’s impact on the environment.
Green car loans are relatively new to the Australian personal lending market, and indicate a growing interest in sustainability. However, because it’s a newer concept, not every lender provides dedicated green car loans. This may change as Australia moves towards an electric future.
For example, Bank Australia intends to cease funding car loans for petrol cars from 2025, and the ACT state government banning the sale of new petrol cars from 2035. Meanwhile, New South Wales has been trialling converting existing power poles into EV chargers in sites located across Sydney, as well as regional areas like Newcastle, Lake Macquarie and Singleton.