Electric Car Finance & Loans

How financing an electric car works

Electric car finance works much the same as financing a petrol or diesel vehicle. You borrow an amount, the vehicle usually acts as security for the loan, and you repay it with interest over an agreed term. Most lenders finance electric vehicles through a standard secured car loan, and the structure, repayments and application process look very similar to any other car loan.

EV finance, EV loans and green car loans

EV finance and EV loans are simply shorter names for the same thing: a loan used to buy an electric vehicle. Whatever the label, the loan works like any other secured car loan. Some lenders go a step further and offer green car loans, which apply a discounted interest rate to vehicles that meet certain environmental criteria. Whether an electric vehicle qualifies depends on the lender and its eligibility list, so it is worth checking the criteria before applying. Lenders that do not offer a green variant may still finance electric cars through their standard car loan products.

What lenders typically look at

Things to keep in mind

Electric vehicles often have a higher purchase price than comparable petrol cars, so the amount you need to borrow may be larger. Battery warranty terms vary between manufacturers and can affect the longer term value of a used electric car, so it is worth checking the warranty before buying. Charging options also matter: home charging is typically the cheapest way to run an electric car, while public fast charging usually costs more. Some states and territories offer incentives such as stamp duty concessions on electric vehicles, and these change over time. Running costs, insurance and resale values can all differ from petrol vehicles, so it is worth looking at the total cost of ownership rather than the purchase price alone.

New versus used electric cars

New electric cars usually come with a full battery warranty and the latest technology, but cost more upfront. Used electric cars can be more affordable, though lenders may apply stricter age limits on older vehicles, and battery condition becomes an important consideration. Having the battery health checked before buying a used electric car can help you understand what you are purchasing.