Green Car Finance

Electric Vehicle Loans from 4.99% p.a.

Go electric and save with green car discount rates, FBT exemptions for salary packaging, and government incentives. Our EV finance specialists compare the best options from lenders who actively support the transition to electric transport.

Comparison rate 5.68% p.a.* on a $55,000 secured EV loan over 5 years.

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EV Loan Calculator

Green car discount rates included

Loan Amount

$55,000

$15,000$150,000

Interest Rate (p.a.)

5.49%

4.50%10.00%

Loan Term

5 years

1 years 7 years

Monthly Payment

$1,050.31

Total Interest

$8,019

Total Repayment

$63,019

Principal (87.3%)Interest (12.7%)

Principal: $55,000

Interest: $8,019

This calculator provides estimates only. Actual rates and repayments may vary based on your circumstances and lender requirements.

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Electric Vehicle Finance at a Glance
Green car discount rates from 4.99% p.a. — 0.50% to 1.00% below standard new car rates
FBT exemption for EVs under $91,387 when salary packaged through a novated lease
Running costs of just $0.03-$0.05/km compared to $0.12-$0.18/km for petrol
State government rebates and incentives may reduce your upfront cost by $2,000-$3,000
Battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) both eligible for green rates

Green Car Finance Rates Explained

Australian lenders are increasingly offering discounted interest rates for electric and plug-in hybrid vehicles as part of their sustainability commitments. These green car rates recognise that EVs represent lower environmental risk and often attract more financially responsible borrowers.

Green rate discounts typically range from 0.50% to 1.00% below the lender's standard new car rate. On a $60,000 EV financed over 5 years, a 0.75% green discount saves approximately $1,200 in total interest. Not all lenders offer green rates, and eligibility varies — our brokers identify which lenders provide the best green car deal for your situation.

Vehicle Type	Typical Rate	Green Discount
Battery Electric (BEV)	4.99% - 6.49%	Up to 1.00% off
Plug-in Hybrid (PHEV)	5.49% - 6.99%	Up to 0.75% off
Standard Hybrid (HEV)	5.49% - 7.49%	Up to 0.50% off (select lenders)
Standard Petrol/Diesel	5.49% - 7.99%	N/A

FBT Exemption: The Biggest EV Incentive

The Fringe Benefits Tax (FBT) exemption for electric vehicles is arguably the most valuable government incentive available to Australian car buyers. Introduced on 1 July 2022, the exemption applies to zero and low-emission vehicles below the luxury car tax threshold for fuel-efficient cars ($91,387 for 2024-25).

When an EV is provided to an employee through salary packaging (typically via a novated lease), the vehicle is exempt from FBT. In practice, this means:

No FBT payable by the employer — unlike conventional vehicles where FBT is calculated on the vehicle's value, eligible EVs attract zero FBT
Income tax savings — salary packaging pre-tax dollars for the car reduces your taxable income, saving 30-47% depending on your marginal tax rate
GST savings — GST on the purchase price and running costs is typically reclaimed through the novated lease structure
Running costs included — charging, registration, insurance, tyres, and servicing can all be packaged into the lease

FBT Saving Example: $60,000 Tesla Model 3

Without FBT exemption (petrol equivalent): $16,000-$22,000 FBT payable over a 5-year lease
With FBT exemption (EV): $0 FBT payable
Income tax savings (on $150K salary): approximately $5,000-$8,000 per year
Fuel savings vs petrol: approximately $1,500-$2,000 per year

Example is illustrative. Actual savings depend on individual tax circumstances.Learn about novated leases.

Total Cost of Ownership: EV vs Petrol

When comparing an EV to a similar petrol vehicle, the sticker price alone tells only part of the story. Over a typical 5-year ownership period, the lower running costs of an EV can offset much or all of the higher purchase price:

Cost Over 5 Years (15,000 km/year)	EV ($55,000)	Petrol ($45,000)
Purchase Price	$55,000	$45,000
Fuel/Electricity (5 years)	$3,375	$11,250
Servicing (5 years)	$2,500	$5,000
FBT Savings (novated lease)	-$18,000	$0
Resale Value (est.)	-$33,000	-$22,500
Total 5-Year Cost	$9,875	$38,750

Estimates based on average figures. Individual results vary based on driving habits, electricity costs, and resale values.

EV Finance Process

Choose Your Path

Standard car loan, novated lease, or chattel mortgage — we recommend the best structure for your situation.

Green Rate Comparison

We compare green car rates from lenders who offer EV discounts on our panel.

Approval & Incentives

Get approved and we help you access applicable state rebates and incentives.

Go Electric

Settlement with the dealer, and you are driving your new EV with the best possible deal.

Related Finance Options

Novated Lease

Salary package with FBT savings

New Car Loans

All new vehicle finance

Chattel Mortgage

Business vehicle finance

Secured Car Loans

Lowest standard rates

No Deposit Car Loans

100% EV financing

WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.

Electric Vehicle Loan FAQs

What is the FBT exemption for electric vehicles?

Since 1 July 2022, eligible electric vehicles with a value below the luxury car tax threshold for fuel-efficient cars ($91,387 for 2024-25) are exempt from Fringe Benefits Tax (FBT) when provided through a salary packaging arrangement. This exemption can save employees thousands per year compared to packaging a petrol vehicle, making EVs significantly more affordable when financed via a novated lease.

Do lenders offer lower rates for electric vehicles?

Yes, several lenders on our panel offer green car discount rates for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). These discounts typically range from 0.50% to 1.00% below standard new car rates. The discounts apply to both consumer and commercial finance products.

Are there state government rebates for buying an EV?

Several Australian states have offered EV rebates and incentives, though programs change frequently. Historically, NSW, VIC, QLD, SA, and ACT have offered rebates of $2,000-$3,000 for new EVs, stamp duty exemptions, and registration discounts. We recommend checking your state government website for current programs, as these incentives are updated regularly.

How does the running cost of an EV compare to petrol?

EVs are significantly cheaper to run. Electricity costs approximately $0.03-$0.05 per kilometre (even less with home solar), compared to $0.12-$0.18 per kilometre for petrol. On 15,000 km per year, that is approximately $450-$750 for electricity versus $1,800-$2,700 for petrol — a saving of $1,350-$1,950 annually. Servicing costs are also lower as EVs have fewer moving parts.

Can I finance a used electric vehicle?

Yes, used EVs can be financed the same as any used car. However, battery condition is a key consideration for lenders. Most EVs come with 8-year battery warranties, so a used EV within warranty is generally easy to finance. Our brokers can help assess the best finance option for used EV purchases.

Is a novated lease or chattel mortgage better for an EV?

For employees, a novated lease is typically the best option because it provides access to the FBT exemption, GST savings on the purchase price and running costs, and income tax savings through salary packaging. For business owners or ABN holders, a chattel mortgage provides GST recovery and tax-deductible interest. We can model both scenarios for your specific situation.

Go Electric with the Best Rate

Green car discount rates from 4.99% p.a. Plus FBT exemptions and state incentives.

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