The offer has also been extended to essential workers like police officers, teachers, firefighters and nurses. Climate Change and Energy Minister Chris Bowen said the initiative will hopefully see more EVs on the road.
“Only the Albanese Labor Government is making sure more Australians are able to get behind the wheels of cheaper-to-run cars and begin saving on their commutes," he said.
“Discounted loans help remove barriers to ownership, helping more Australians drive cars that can save them thousands of dollars a year.”
CBA said the offer is "one of the best car loan rates in the market" and applies to EVs and hybrids worth up to $55,000.
A Yahoo Finance poll of more than 2,500 people found the price of electric vehicles was the second biggest barrier stopping them from buying one.
Interest rates on the loans are up to 5 percentage points lower than standard rates.
This can save buyers more than $8,000 for a $40,000 loan with a seven-year term, which goes on top of savings from not having to pay for petrol.
If you apply for a personal loan for an electric car through the CommBank App under the EV Access Program, those savings could jump to a whopping $25,000 over the same time period for a Polestar 2, for example.
“Many Australians are open to buying an electric vehicle6 but are put off by the upfront cost," CommBank General Manager Personal Lending Joel Larsen said.
"Our new EV Access Program is designed to provide customers with special offers on vehicles and a discounted interest rate for the life of the loan.
"With new cheaper models coming onto the market and a growing second-hand market, it’s a good time to consider an EV.
“To help customers get a good deal on an EV, CommBank has worked with some car manufacturers to develop a set of special offers which are available through the newly launched Buy and Own a Car service, accessible via the CommBank app."
You can also use the initiative to buy used EVs as well as home EV charging equipment.
Government praised for helping more Aussies get into EV market
The Motor Trades Association of Australia (MTAA) said the EV initiative is a "significant step" in addressing the barriers stopping Aussies from getting into the electric car market.
“MTAA commends the Government for its ongoing efforts to make low emission transport more accessible to Australians,” Matt Hobbs, CEO of MTAA, said.
“This initiative will play a vital role in helping more Australians make the switch to EVs, which is essential for reducing emissions.”
Aman Gaur, head of Legal, Policy and Advocacy at the Electric Vehicle Council, added that the savings available are immense.
“Electric driving is the most fuel-efficient and cost-effective way to travel. Once people are behind the wheel of a battery-electric vehicle, they can save thousands of dollars a year on fuel and maintenance costs," Gaur said.
“We are pleased that second-hand battery EVs can be purchased with these low-interest loans."
Gaur said most Australians buy used cars over new vehicles, but while the pre-owned EV market was "still developing", boosting uptake of new electric cars was essential.
"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," Gaur said.
"It only cost about $9 to fill it up,” he said. "What are people paying in petrol? $100 a week?”
Ricky Nolan is a huge fan of his Tesla, but admitted that when his mother bought a BYD, he was impressed. ·Supplied
Is it cheaper to run an electric car?
A recent analysis by Compare the Market (CTM) found motorists could save thousands of dollars by going electric.
They crunched the numbers on the popular BYD Atto 3, and similar-sized petrol SUV, the Toyota Corolla Cross.
Across fuel and charging costs, registration, servicing, insurance and loan repayments for a motorist in either Brisbane or Sydney, the electric offering came up between $897 and $1,536 cheaper.
A direct comparison of petrol ($1,944.69) and charging costs ($585.01), found an annual difference of $1,359.68 in favour of electric.
A recent CTM survey found overall cost was the biggest barrier for Aussies considering making an EV purchase.
EV Petrol ·Yahoo Finance Australia
EV sales hit record in 2024
The Council revealed early this month that EV sales hit a major milestone of 100,000 vehicles sold in 2024.
The previous record was set last year with 98,400 sales, showing how Australia's appetite for electric vehicles is showing no signs of slowing down just yet.
“Reaching this annual milestone of 100,000 EV sales is a clear signal that Australians want modern, sustainable cars that are fun to drive," Gaur said.
“Despite ongoing cost-of-living pressures making it harder to purchase a new car upfront, EV sales have still outpaced previous years. EVs are becoming more affordable thanks to a variety of budget-friendly models, more competition across all vehicle types and government incentives."
But it was bad news for Tesla, with Elon Musk's car brand suffering an eighth consecutive month of year-on-year decline in sales.
The car giant sold 2,540 electric cars in November, according to the Electric Vehicle Council, which is a 35.5 per cent drop from the same time last year.
March was the last time Tesla saw an increase in the year-on-year sales.
