Green Car Finance | EV Rate Discounts

Compare Electric Vehicle Loan Rates With Green Discounts

Going electric? Several Australian lenders offer discounted "green car loan" rates for EVs and plug-in hybrids. We compare options across our panel to find competitive EV finance. Government incentives may further reduce your costs. All approvals subject to lender assessment.

5.49%

Green Rates from*

FBT on EVs under $91,387

70%

Lower Running Costs

Compare EV Loan Options See Government Incentives

*Green car loan rate for well-qualified borrowers. FBT exemption applies to eligible vehicles below luxury car tax threshold for fuel-efficient vehicles. Subject to change.

Why Choose an EV Loan?

Lower rates, lower running costs, and government incentives

Green Car Loan Discounts

Several major Australian lenders and specialist financiers offer discounted interest rates specifically for electric and plug-in hybrid vehicles. These "green car loans" typically offer rates 0.50-1.00% lower than standard new car finance.

Discounted rates for full battery EVs
Some lenders include plug-in hybrids (PHEVs)
Available from banks, credit unions, and specialists
Rates and eligibility vary by lender

Lower Total Cost of Ownership

While EVs often have a higher purchase price, the total cost of ownership over 5-7 years can be significantly lower. Electricity costs roughly $3-5 per 100km vs $12-18 for petrol, and EVs have far fewer moving parts requiring maintenance.

Fuel savings of $1,500-$3,000+ per year
Minimal servicing (no oil changes, fewer brake replacements)
No FBT for eligible salary sacrifice EVs
Lower registration in some states

Salary Sacrifice Advantage

Since 1 July 2022, eligible electric vehicles are exempt from Fringe Benefits Tax (FBT) under Australian tax law. This makes salary sacrificing an EV through your employer one of the most tax-effective ways to purchase a new car.

Save 30-50% compared to paying with after-tax income
Vehicle must be below the fuel-efficient LCT threshold
Must be used under a novated lease arrangement
Speak to your employer or a novated lease provider

Australian Government EV Incentives

Federal and state incentives that can reduce your EV costs

Incentive	Benefit	Eligibility
FBT Exemption (Federal)	Save $5,000-$15,000+ per year	EVs below $91,387 (2025-26 LCT threshold)
NSW - Stamp Duty Exemption	Save up to $3,000	New & used EVs under $78,000
VIC - ZEV Registration Discount	$100 annual discount	Zero-emission vehicles
QLD - Stamp Duty Discount	$2 per $100 (vs $3-$6)	New EVs and PHEVs
ACT - Stamp Duty Exemption	Full exemption	New zero-emission vehicles

Government incentives change frequently. Check your state government website for current eligibility and amounts. Information current as of March 2026.

Popular EVs We Finance in Australia

From budget-friendly to premium -- there is an EV for every budget

Under $50,000

Entry-level EVs are now genuinely affordable in Australia, with several options under $50K drive-away.

BYD Dolphin - from ~$33,000
MG4 - from ~$34,000
BYD Atto 3 - from ~$38,000
Hyundai Kona Electric - from ~$46,000

$50,000 - $80,000

Mid-range EVs offer excellent range, features, and technology for families and commuters.

Tesla Model 3 - from ~$53,000
Tesla Model Y - from ~$56,000
Hyundai Ioniq 5 - from ~$60,000
Kia EV6 - from ~$62,000

$80,000+

Premium EVs for those wanting the best range, performance, and luxury features.

BMW iX - from ~$115,000
Mercedes EQS - from ~$180,000
Tesla Model S - from ~$120,000
Porsche Taycan - from ~$155,000

Prices are approximate drive-away estimates and may vary. We can arrange finance for any make and model of electric vehicle.

EV vs Petrol: Running Cost Comparison

How lower running costs offset the higher purchase price

Cost (per year, 15,000km)	Petrol Car	Electric Vehicle	Annual Saving
Fuel / Electricity	$2,400	$600	$1,800
Servicing	$800	$200	$600
Registration	$700	$500	$200
Total Annual Cost	$3,900	$1,300	$2,600/year

Estimates based on average Australian driving 15,000km/year. Petrol at $1.80/L, electricity at $0.30/kWh (home charging). Actual costs vary by vehicle, driving habits, and energy prices.

How to Finance Your Electric Vehicle

Get pre-approved and drive electric sooner

Complete Our Quick Assessment

Takes 2 minutes. Tell us about your income and the EV you are considering. We will identify lenders with green car loan discounts that match your profile.

Compare Green Loan Options

See which lenders offer EV-specific rate discounts, along with standard car loan options. Compare rates, terms, and monthly repayments side by side.

Get Pre-Approved

Lock in your finance before visiting the dealership. Pre-approval gives you confidence on your budget and lets you focus on choosing the right EV.

Settle and Go Electric

Once you have chosen your vehicle, we finalise the loan and arrange settlement. Most EV loans settle within 24-48 hours for new vehicles.

Start EV Loan Assessment

Electric Vehicle Loan FAQs

Common questions about financing an EV in Australia

What is a green car loan?

A green car loan is a vehicle finance product that offers discounted interest rates for environmentally friendly vehicles, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and in some cases, hybrid vehicles. Several Australian lenders on our panel offer these products with rate discounts of 0.50-1.00% below their standard car loan rates.

Should I worry about EV battery degradation affecting my loan?

Modern EV batteries are designed to retain 80-90% of capacity after 8 years. Most manufacturers offer battery warranties of 8 years or 160,000km. Lenders are increasingly comfortable with EV residual values as the market matures. Tesla, Hyundai, and BYD all offer strong battery warranties in Australia.

Can I finance a used electric vehicle?

Yes. As more EVs enter the second-hand market, lenders are offering finance for used electric vehicles. Standard used car age restrictions apply. Some green car loan discounts are only for new EVs, but others extend to used models. We can compare options across our panel for both new and used EVs.

How does salary sacrifice for EVs work?

Under a novated lease, your employer makes car payments from your pre-tax salary. Since EVs under the fuel-efficient LCT threshold ($91,387 for 2025-26) are exempt from FBT, the tax savings are substantial -- typically 30-50% compared to buying with after-tax dollars. Your employer must agree to offer novated leasing. Note: we provide car loan finance, not novated leases directly -- speak to a novated lease provider for salary sacrifice arrangements.

Do EVs hold their value well in Australia?

Resale values vary by brand and model. Popular models like the Tesla Model 3 and Model Y have shown strong resale values in Australia, while some lesser-known brands may depreciate faster. As the EV market matures and charging infrastructure improves, residual values are generally trending upward. Lenders factor this into their LVR calculations.

Richard (Ricky) Esteb

Licensed Mortgage Broker & Founder

Credit Rep #574071 ACN 681 636 056 83+ Lender Panel

With direct experience helping Australians secure home loans, car finance, and business funding, Ricky founded Esteb and Co to bring transparency and technology to mortgage broking. Every piece of content is written from real-world lending experience.

Verified & Last Reviewed: March 2026 | Content meets ASIC regulatory requirements