The Clean Energy Finance Corporation (CEFC), an Australian government organisation that handles the financing of sustainable energy projects, has announced a new loan scheme for Australians, where in which Aussies can save $2,500 when taking out a loan for an EV through lending company Firstmac.
The CEFC said that the $40 million investment will save EV buyers between $1,400 and $2,500, depending on the repayment length and size. It’s not the first EV-focused loan incentive the CEFC has championed, but it is a worthwhile one to consider – coming just a day after the Federal government announced its National Electric Vehicle Strategy.
Functionally, the loans are designed to save customers 1 per cent on the interest rate offered to Firstmac customers buying an EV. For example, while a customer interested in buying a petrol vehicle may be offered a 5.29 per cent interest rate, loans made for the purchase of an electric vehicle will go down to 4.29 per cent.
0.5 per cent of the cut costs come from the CEFC, while the other 0.5 per cent comes from Firstmac.
Additionally, the loans can functionally add to the savings offered by state-based incentives. Electric Vehicle Council CEO Behyad Jafari told The AAP that these savings could make an electric car “cost less up-front than equivalent petrol or diesel cars”.
“Electric vehicles are no longer only for early adopters. We know the dynamics of EV ownership are changing dramatically and more Australians want to buy EVs. However, just 6.8 per cent of all new cars purchased in Australia in February were electric, pointing to a big gap between buyer preferences and vehicle availability,” CEFC head of debt markets Richard Lovell said.
“We have a policy of minimising the impact of our operations on the environment and leading the way on climate change. These popular loans are a valuable tool in the fight to cut vehicle-based emissions because they mean that people can save money and help the environment at the same time.” Firstmac managing director Kim Cannon added.
These loans will only apply to ‘green EVs’ – not petrol vehicles or hybrids. Plug-in Hybrid Electric Vehicles (PHEVs) will be eligible if their tailpipe emissions are below 50g CO2/km. Additionally, only electric vehicles and PHEVs priced at under $90,000 will be eligible.
Little by little, EVs seem to be getting more accessible to lower-income Aussies.