Government helping more Australians buy cleaner, cheaper EVs

The Albanese Government is making it easier for motorists to buy cleaner, cheaper electric vehicles (EVs) with $40 million in support for discounted loans on the cleanest vehicles.

EVs are cleaner and cheaper to run, but for too long, upfront costs have been some of the biggest hurdles for Australians when considering whether or not to buy an EV.

Following the release of the Albanese Government’s National Electric Vehicle Strategy, this funding is another critical step to make electric vehicles more accessible for all Australians.

Finance through the Clean Energy Finance Corporation (CEFC) will support a discount on EV loans by non-bank lender Firstmac, saving on average between $1,400 and $2,500 depending on size and length of the loan [1].

Discounted financing on EVs under $90,000 with strong emissions standards will help drive growth of the Australian market while providing access to cleaner, cheaper cars and cut transport emissions.

Minister for Climate Change and Energy, Chris Bowen, said government-backed financing was about giving Australians greater choice and encouraging EV supply in Australia.

“We know the EV’s are cleaner and cheaper to run, and we want to make it easier for more Australians who want them, to purchase them. Discounted loans are a great way to help Australians buy an EV and grow the first and second-hand EV markets,” Minister Bowen said.

“We’re working with the CEFC to give Australians more options when it comes to buying their next vehicle. EVs are cheaper to run than cars with internal combustion engines, but the cost has discouraged many car buyers.

“This financing will also help open the way for more manufacturers to supply the cleanest EVs to the local market because the Green Car Loan scheme is available to a wide range of EVs.”

The loan discount will be split equally by the CEFC financing and Firstmac under its Green Car Loan scheme, which applies only to the lowest-emitting EVs available.

Other CEFC investments towards EVs include $45 million in 2021 to consumer finance provider Plenti and $20.5 million in 2022 to Taurus Motor Finance.

[1] Calculation based on loans of $50,000 and $90,000 respectively, over five years.