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NSW Government incentivises electric vehicle buyers and June’s top green car loans

NSW Government incentivises electric vehicle buyers and June’s top green car loans

This week’s announcement of the 2021-22 NSW Budget revealed new measures to support the take-up of electric vehicles (EVs).

According to the NSW Budget overview, the incentives package includes:

  • Motor vehicle duty exemptions for eligible new and used zero- and low-emission vehicles.
  • A $3,000 rebate for battery electric vehicles (BEVs) and fuel cell electric vehicles under $68,750 from 1 September 2021, for the first 25,000 eligible sales.
  • A $171 million investment in charging infrastructure over the next four years to ensure accessibility of ultra-fast chargers, focusing on major highways and regional tourist destinations.
  • Government fleet procurement of BEVs, targeting 50 per cent of government fleet purchases by 2025-26 and 100 per cent by 2029-30.

The announcement also revealed that a 2.5 cents per kilometre road user charge for EVs will be introduced (from the earlier of 1 July 2027 or when battery electric vehicles reach 30 per cent of new vehicle sales) to provide a sustainable and efficient source of road funding into the future.

In his Budget speech, NSW Treasurer Dominic Perrottet said: “We’re legislating today to stamp out stamp duty on electric vehicles, for a greener future, where stamp duty on all cars will be a thing of the past.”

“We’re setting up a better system for funding our roads, establishing a road user charge on electric vehicles, but only once they reach a critical mass. So, we’re driving take-up, not impeding it,” he said.

Earlier in the week, Federal Chamber of Automotive Industries (FCAI) chief executive Tony Weber said the direction being set by the NSW Government “has the capacity to kickstart serious EV penetration into Australia”.

“As the future of mobility continues to rapidly transform, now is the time for governments to relieve motorists of a myriad of outdated, confusing and inefficient charges and replace them with a simplified road user charging approach,” he said.

“The incentives package for electric vehicles is consistent with actions being taken by forward thinking governments across the world.”

As it stands, there are a number of car loan providers that incentivise EV buyers by offering green car loans with rates that are often more competitive than their standard car loan products.

For example, at the time of writing, loans.com.au’s green car loan offering has rates starting from 3.97 per cent (4.51 per cent comparison rate), while its standard car loan rates start from 4.67 per cent (5.22 per cent comparison rate).

If you’re in the market for a new set of wheels and you’re considering eco-friendly options, you might like to get started on your car loan comparison.

To help you with your research, RateCity has put together some of the top-rated green car loans for June 2021.

(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)

Top-rated green car loans

Company
Product

Green Road Personal Loan

Real Time Rating™

3.75

/ 5
Interest Rate

4.74

% p.a

Variable

Comparison Rate*

5.01

% p.a

Monthly repayment

$563

Real Time Rating™

3.75

/ 5
Go to site
Company
Product

Green Car Loan (Fixed)

Real Time Rating™

3.44

/ 5

Winner of Best Green Car Loans, RateCity Gold Awards 2022

Interest Rate

4.89

% p.a

Fixed

Comparison Rate*

5.44

% p.a

Monthly repayment

$565

Real Time Rating™

3.44

/ 5
Go to site

special

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Winner of Best Green Car Loans, RateCity Gold Awards 2022

Company
Product

Green Car Loan (Special)

Real Time Rating™

3.47

/ 5
Interest Rate

5.29

% p.a

Variable

Comparison Rate*

5.56

% p.a

Monthly repayment

$570

Real Time Rating™

3.47

/ 5
Go to site
Company
Product

Fixed Car Loan (with Low Emission Vehicle discount)

Real Time Rating™

3.34

/ 5
Interest Rate

5.45

% p.a

Fixed

Comparison Rate*

5.45

% p.a

Monthly repayment

$572

Real Time Rating™

3.34

/ 5
Go to site

special

Offset your car’s carbon emissions for the life of the loan
Company
Product

Green Car Loan - Green Car Loan

Real Time Rating™

3.00

/ 5
Interest Rate

6.75

% p.a

Variable

Comparison Rate*

6.79

% p.a

Monthly repayment

$591

Real Time Rating™

3.00

/ 5
Go to site

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This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

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