Cheaper car loans to put more EVs on the road

The Albanese Government is improving the accessibility of electric vehicles, under a new EV financing agreement between the Clean Energy Finance Corporation (CEFC) and Taurus Motor Finance.

The $20.5 million investment will support discounted loans totalling $100 million to help more Australians buy EVs.

Eligible motorists will receive reduced interest rates on loans for EVs under $90,000. For example, borrowers could save about $1,300 in interest over a seven year loan of about $48,000.

This funding comes off the back of the Electric Car Discount bill passing through the Senate, which delivers our election commitment to make electric vehicles more affordable for more Australians and businesses.

Electric vehicles are far cheaper to run than internal combustion engines. By improving access to EVs, households will have more affordable options.

Climate Change and Energy Minister Chris Bowen said the CEFC investment would help speed up the uptake of EVs in Australia and support the transport sector to reduce emissions.

“Electric vehicles are cleaner and cheaper to run, but Australians are missing out on these benefits because of the price,” Minister Bowen said.

“EVs currently account for just over 3% of new car sales in Australia, but all the market indications are that more Australians want to buy EVs to cut running costs and reduce their carbon footprint.

“Cheaper loans supported by CEFC finance are a strong incentive for them to buy EVs and will help decarbonise the transport sector,” Minister Bowen said.

The uptake of electric vehicles is powering ahead under the Albanese Government, the Powering Australia plan, and the government’s first federal Budget.

The 2022–23 Budget also delivers an extra $275 million for the roll out of the government’s $500 million Driving the Nation Fund, which will build a national EV charging network and develop infrastructure for zero-emission vehicles for highways, fleets and freight hubs.

Development of Australia’s first National Electric Vehicle Strategy is underway, to improve the affordability, supply and uptake of EVs. The government has already acted to make electric cars cheaper through the removal of fringe benefits tax and the 5% import tariff for eligible EVs.

The investment by the Clean Energy Finance Corporation builds on its strong track record over the past 10 years of facilitating private sector capital to accelerate Australia’s clean energy transition.