Affordable Green Car Loans for Eco-Friendly Vehicles

What Is a Green Car Loan and How Does It Work?

A green car loan is a car loan structured around financing an eco-friendly vehicle typically a battery electric vehicle (BEV), plug-in hybrid (PHEV), or a standard hybrid — rather than a petrol or diesel car. In practice, the application process looks similar to a standard car loan: you apply online, provide your details and vehicle information, and receive a decision. Where a green car loan can differ is in the vehicle eligibility criteria and, with some lenders, in the rate offered, since certain vehicles may attract a discounted rate. Any rate discount is never guaranteed and is always subject to individual assessment and current lender criteria.

Which Vehicles Qualify as "Green" for Finance?

Eligibility for a green car loan generally centres on the vehicle's emissions rather than its price or brand. Vehicles that may qualify include:

• Battery electric vehicles (BEVs)

• Plug-in hybrid electric vehicles (PHEVs)

• Fees disclosed before you accept a contract
  

• Standard (non-plug-in) hybrid vehicles, subject to lender criteria

• Some low-emission or fuel-efficient petrol vehicles, depending on the lender's threshold
  

Exact eligibility, including whether a used EV or hybrid qualifies, and any applicable emissions threshold is confirmed as part of your application, since criteria can vary. If you're considering a pre-owned eco-friendly vehicle, our used car loan options may also be worth comparing.

How Much Could You Save With a Green Car Loan?

Some lenders offer a rate discount on eligible green vehicles compared with their standard car loan rate, and running costs for EVs and hybrids can also be lower than a petrol equivalent over time, depending on how the vehicle is used and charged. That said, actual savings depend on the vehicle, loan amount, term, and your individual approval so while a green car loan can reduce the overall cost of financing an eco-friendly vehicle, no specific saving is guaranteed. We'd always recommend comparing your personalised quote against a standard car loan before deciding.

Green Car Loan Eligibility:

Cash Direct assesses green car loan applications on more than a credit score alone, which means a less-than-perfect credit history doesn't automatically rule you out our bad credit car loan options may still apply to an eco-friendly vehicle purchase, subject to assessment. A no-deposit structure may also be available for eligible applicants, so you're not necessarily required to save a lump sum before switching to an electric or hybrid vehicle. If you receive Centrelink payments, our Centrelink-friendly car loans may be relevant to your green vehicle application as well eligibility is always confirmed individually.

How to Apply for Your Green Car Loan in 5 Simple Steps:

-Set your budget. Decide roughly what you're looking to spend on an electric, hybrid or low-emission vehicle.
-Get pre-approved. Complete our online application so we can assess your eligibility and give you an indication of what may be available to you.
-Shop with confidence. With an indication of your budget in hand, you can compare eco-friendly vehicles and negotiate with sellers.
-Provide vehicle details. Once you've found the right car, share the vehicle and seller information so we can finalise your application.
-Drive away. Subject to final approval, funds can be released quickly so you can complete your purchase.

Estimate Your Repayments:

Before you apply, it can help to see roughly what a green car loan might cost you week to week. Try our car loan calculator to estimate repayments based on your loan amount, term and an indicative rate, figures are estimates only and your actual repayments will depend on your approved rate and terms.