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The cheapest electric vehicle loans revealed

·2-min read
Tesla parked in underground car park
You can get discounted car loans for some electric vehicles and hybrids. (Source: Getty)

Westpac became the first major Aussie bank to offer discounted car loans for electric vehicles and hybrids last week.

But with rates starting at 4.99 per cent, the offer was far from the most competitive rate for financing a low-emissions car.

At least 11 lenders offer discounted finance for electric vehicles and hybrids, according to RateCity data, with seven of those green car rates lower than Westpac’s.

Loans.com.au offered the lowest rate for motorists considering the switch, with rates starting at 2.89 per cent. The lender also offers a fixed green-car home loan starting at 4.39 per cent.

The second-most competitive green-car loan comes from Credit Concierge, which has rates starting from 3.39 per cent.

Driva came in third place, with rates for its EV car loan starting at 3.49 per cent.

A total of 11 lenders offer specialist green loans, according to the comparison website.

Most motorists want electric vehicles, according to a Westpac survey, with 70 per cent planning to own one at some point in the future.

Around 34 per cent of people who currently own a petrol or diesel car are considering making the leap to electric the next time they buy a car.

However, the high upfront cost continues to deter buyers, with 67 per cent of respondents to the survey pointing out that the price of EVs was the main reason they were yet to switch.

Government policies are starting to make electric cars more affordable.

Under new tax settings promised by the newly elected Labor Government, a $50,000 EV model is expected to become $2,000 cheaper.

These tax settings are also intended to attract more affordable EV models to Australian shores.

Motorists can also take advantage of state-level subsidies to bring down the cost of their EV purchase.

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