Discounted loans for EVs, announced by the federal government in December, is a cost-of-living win for Australians who want a cheaper-to-run car but need help with the upfront purchase, says the Electric Vehicle Council.
Backed by $150 million from the Clean Energy Finance Corporation (CEFC), the Commonwealth Bank is now offering low-interest EV loans for workers earning less than $100,000 a year, as well as essential workers like police officers, teachers, fire fighters and nurses.
The loans will enable the purchase of new and used battery electric vehicles, and home EV charging equipment.
Overcoming cost barrier
Electric Vehicle Council, Head of Legal, Policy and Advocacy, Aman Gaur said the measure is one of many that will boost EV adoption.
“One of the main barriers to owning an EV is the upfront cost, so low interest loans for low and middle-income Australians will help overcome this,” Mr Gaur said.
Research from the Australian Automotive Dealer Association (AADA) last year showed the current cost of living is the biggest barrier to Australian households switching to EVs, with 37 per cent open to purchasing an EV but 67 per cent expecting to keep their current car for longer than expected due to the current cost of living pressures.
Accelerating the transition to EVs
Mr Gaur says financial support is essential to accelerate the transition to EVs and drive the next wave of adopters.
“Low interest loans, purchase incentives, rebates and registration concessions, are all effective and necessary measures that make EVs more affordable and accessible to a broader range of consumers,” he said.
“These low interest loans for battery electric vehicles build on other federal government measures including the FBT exemption, and investment in a nationwide charging network. Low interest loans for EVs come at an opportune time, as more electric cars become available in Australia with the launch of the government’s New Vehicle Efficiency Standard.
“We commend the federal government for its efforts to boost EV adoption so far and we encourage all levels of governments to build on this momentum. More EVs on our roads means more Australians saving money on running costs, cleaner air for all of us, and closer progress towards achieving our climate targets as a nation,” Mr Gaur said.
