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Three ways green car loans could save you money

Three ways green car loans could save you money

When you’re in the market for a new car, there are plenty of deciding factors that generally come into play during your search. Maybe you’re looking for a family-friendly car to taxi the kids around. Or it might be a compact city runaround that you’re after. Regardless of the specifics, one thing that many are thinking about when shopping for a car is whether it is eco-friendly.

Buying an eco-friendly, or ‘green’, car is not only an environmentally responsible decision, it could also potentially be a financially responsible decision in more ways than just day-to-day running costs.

Something that may surprise some is that green cars aren’t only cars that are either electric or hybrid vehicles. They can also be new cars that are deemed to be considerably more fuel efficient than a comparable make and model. This includes a selection of cars that may be sold at a much more accessible price point than that of electric and hybrid options. You can compare the green performance of specific cars by visiting Green Vehicle Guide.

Dependant on where in the country you’re located, buying a green car could also unlock some government incentives that might save you a bit of money. Some green car drivers may be eligible for discounts on registration fees and even stamp duty.

Whichever green car it is that takes your interest, it’s worth noting that if you plan to buy it on finance, you could be able to access car loans specifically tailored to eco-friendly vehicles.

Here are three ways green car loans could save you money. 

1. Discounted interest rates

Some banks and lenders may offer green car loan options that have lower interest rates than regular car loans. Paying a reduced interest rate could potentially save you money over the life of the loan.

2. Waived fees and charges

The number of fees and charges that may be associated with some finance options can sometimes really add up. Select green car loans, however, will waive some of these, with certain lenders offering incentives such as no monthly fees and free redraw.

3. Offset carbon emissions

Select lenders may offset your car’s carbon emissions for the length of your loan. This is an important step in the right direction in terms of reducing your overall carbon footprint. Having this built into your car loan means you don’t have to worry about the cost of offsetting your car yourself, while doing the right thing for the environment.

RateCity makes it easy for you to compare car loans specific to your needs.

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This article was reviewed by Finance Writer Alison Cheung before it was published as part of RateCity's Fact Check process.

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