Quick answer: Some lenders offer reduced rates on car loans for EVs and plug-in hybrids. Eligibility criteria and thresholds vary by lender. CommBank offers the EV Access Program for eligible borrowers. To understand what options are available for your vehicle and profile, contact eCarz for a current quote including the comparison rate.
Electric and hybrid vehicles now make up a significant share of new car sales across Australia. More buyers want to finance them – but many do not know that some lenders offer specific green loan products with different eligibility rules.
What Is a Green Car Loan?
A green car loan is a standard secured car loan with a potentially reduced rate applied because the vehicle meets a lender’s emissions or eligibility criteria. Many lenders set an emissions threshold – commonly under 75g CO2 per kilometre, but this varies, and eligibility depends on the lender’s own definition and product terms.
Not all hybrids qualify. Mild hybrids and self-charging full hybrids may not meet the threshold on all lender definitions. PHEVs may qualify for some lenders. Always confirm with the broker or lender before assuming the discount applies to the specific vehicle you are buying.
Which Lenders Offer Green Car Loan Products?
CommBank offers the EV Access Program aimed at eligible borrowers. Check commbank.com.au for current eligibility criteria and terms. People’s Choice Credit Union has a dedicated green car loan product. Other lenders on broker panels may offer EV pricing as part of their standard product suite. Contact eCarz to confirm which lenders on our panel offer green finance products relevant to your situation and vehicle.
EV Finance vs Standard Car Finance – What Actually Differs
The vehicle assessment differs. Lenders look at battery condition and warranty status (most major EVs include 8-year battery warranties), charging infrastructure in your area, and resale value projections. Older first-generation EVs (pre-2018) may attract narrower lender options.
Battery electric cars priced under the luxury car tax threshold for fuel-efficient vehicles may be FBT-exempt when provided by an employer, including through a novated lease. Plug-in hybrids lost this exemption for new arrangements from 1 April 2025. This is not a car loan – seek tax advice from your accountant.
How to Compare EV and Hybrid Finance Offers
Step 1: Confirm whether your specific vehicle qualifies for the lender’s green product – make, model, year and the lender’s eligibility definition all matter.
Step 2: Compare the total amount payable using the same loan amount, term and fees for each quote. The comparison rate is useful but is based on a standardised $30,000 over 5-year benchmark – apply it alongside your actual figures.
Step 3: Ask about balloon or residual payment options. A balloon reduces monthly repayments but leaves a lump sum owing at end of term.
Step 4: Confirm insurance requirements. EV insurance premiums are still slightly above equivalent petrol models – factor this into total ownership cost.
Can I Finance a Used EV?
Yes, with some differences. Lenders apply age and battery condition criteria to used EVs. Green rate discounts typically apply to new and near-new EVs – used EVs are often financed as standard used car loans.
Frequently Asked Questions
What green car loan rates are available in Australia in 2026?
Rates vary by lender, borrower profile, vehicle, and loan structure – and change with RBA policy decisions. Contact eCarz on 1300 378 387 for a current quote including the comparison rate and all applicable fees for your specific situation.
Do Tesla vehicles qualify for green car loans in Australia?
Tesla’s current Australian models – Model 3 and Model Y – produce zero tailpipe emissions and generally meet green loan thresholds where lenders offer them. Confirm eligibility for the specific vehicle with your broker at the time of applying.
Can I get EV finance as a self-employed borrower?
Yes. The standard self-employed pathways (full-doc, low-doc, alt-doc) apply to EV finance exactly as they do for any car. Green product eligibility is determined by the vehicle, not the borrower’s employment type.
Is EV finance available for business use?
Yes – commercial EV finance is available through chattel mortgage and finance lease structures. If you provide an eligible EV to an employee, the FBT electric car exemption may apply – talk to your accountant.
Want to understand what EV or hybrid finance options are available for your situation? Contact eCarz on 1300 378 387 or visit ecarz.com.au.