There’s a new lowest car loan interest rate in the market, and it could make an electric vehicle more affordable for some borrowers.
Online lender, loans.com.au, has today revealed its new low-rate car loan offering, with an interest rate of 2.99% for variable rate customers (available to homeowners only).
A further discount is also up for grabs for customers intending to purchase electric vehicles (EVs), with 2.89% also available for eligible customers.
The latest data from the Electric Vehicle Council (EVC) found that sales of plug-in EVs almost tripled in the past year from 6,900 in 2020 to 20,665 in 2021.
loans.com.au Managing Director, Marie Mortimer, said she was excited about what this huge discount could mean for Australians looking to enter the electric vehicle market.
“We’re seeing more Australians understanding the benefits of EVs and choosing electric over petrol when it comes to their new cars,” she said
“We’re rewarding customers for “going green” and choosing an electric vehicle with rates as low as 2.89% for any electric car,” Ms. Mortimer said.
It’s not uncommon for green loans, such as car loans for EVs, to come with lower-than-average interest rates. This is because lenders aim to incentivise customers to make sustainable choices, whether it be buying an electric car or installing rooftop solar.
The new loan offering from loan.com.au will also offer customers features such as making extra repayments and withdrawal with no fee.
How much could an electric vehicle loan cost you?
The top 4 battery and plug-in hybrid EV sales in 2021, according to the EVC, were:
1. Tesla Model 3
2. MG ZS
3. Mitsubishi Outlander
4. MG HS
Based on the pricing guide advised for these models on CarsGuide, we’ve crunched the numbers on what this new loans.com.au car loan may cost you for the latest models.
Hypothetical EV car loan repayments on popular models
(battery and plug-in hybrid EV model)
|Price guide||Median price||Monthly repayments|
(based on median price)
(based on median price)
|Tesla Model 3 (2022)||$59,900 - $86,742||$73,321||$1,314||$78,834|
|MG ZS (2021)||$33,300 - $43,560||$38,430||$689||$41,320|
|Mitsubishi Outlander (2022)||$47,990 - $52,490||$50,240||$900||$54,017|
|MG HS (2021)||$38,900 - $49,720||$44,310||$794||$47,642|
Source: CarsGuide.com.au, RateCity.com.au
Note: Hypothetical calculations based on 5-year term at interest rate of 2.89%. Does not factor in rate fluctuations or fees. Data accurate as of 18/02/22.
At the time of writing, the average car loan rate on RateCity’s database was 8.24%, for comparison.
Would-be car buyers may want to keep in mind that car loan interest rates are generally advertised in a range. The most competitive rates are typically reserved to borrowers who meet the highest standard of eligibility criteria, such as having an excellent credit score and a full-time, higher income.
There is also more to a car loan than the interest rate offered. Would-be buyers may want to consider how potential fees and features may impact the total cost of any car loan.