Big four bank, Westpac, has today revealed a new, lower car loan interest rate for eligible customers considering purchasing a new or used hybrid or electric vehicle (EV).
The competitive rate offering joins several lower rate green loans available and worth comparing, if you’re considering purchasing an environmentally friendly vehicle.
And if you’re considering going green with your next car, you’re not alone, with the latest research from Westpac revealing 70% of Australians plan on owning a hybrid or electric vehicle in the future. In fact, over a third (34%) of petrol and diesel drivers are considering making the switch for their next car purchase.
The Westpac research also found that the biggest motivators for considering a hybrid or EV were:
- Saving on fuel (78%),
- Lower running costs (69%), and
- Reduced carbon emissions (60%).
Westpac’s green car loan rate is a decrease to its existing car loan rate, offering customers rates from 4.99% (comparison rate 6.21%) to borrow between $10,000 - $100,000 to finance a hybrid or EV purchase.
The green car loan rate is available for new and used hybrid and electric vehicles, aged up to seven years old.
Beating the affordability barrier
Some of the biggest barriers in making the switch to a hybrid or EV in Australia are the cost of the vehicle, ‘range anxiety’ regarding the kilometre distance a charged battery could take you considering the sheer size of Australia, as well as poor charging infrastructure.
While the latter two options are out of the control of finance providers, green car loan lenders, on average, will offer lower interest rates to Australians looking to purchase a hybrid or EV to encourage them to make a more sustainable choice.
In fact, the Westpac research found that 67% of Australians surveyed believe the cost of the car is the biggest barrier of these three in making the switch to a green car option. So, it’s unsurprising the big four bank has lowered its car loan interest rate to offer a more competitive product for eligible customers considering going green.
Westpac Chief Executive, Consumer & Business Banking, Chris de Bruin, said: “We all have a part to play in helping Australia move toward net zero. We know that cost is one of the biggest barriers to hybrid and electric vehicle uptake, so this offer can help more customers transition to a greener vehicle.”
“Given the recent increase in petrol prices, electric and hybrid vehicles appeal to the environmentally conscious, and the financially conscious too. We expect demand for these vehicles will continue to rise, with many Australians already planning to make the change,” he said.
“We’re also seeing new government incentives, improved access to charging stations, and more manufacturers offering hybrid and electric vehicles, which will help accelerate the transition,” Mr de Bruin said.
If you’re considering making the switch to a hybrid or EV for your next vehicle purchase, it may be worth considering if a green car loan may help you overcome the affordability barrier.
There are several green car loan lenders offering competitive interest rates, including Westpac. Keep in mind that it’s worth comparing not just the interest rate, but the fees and features associated with the loan and how it may suit your financial situation and budget before signing on the dotted line.