EV car loan calculator

What is a green car loan?

• A car loan with a lower rate for EVs, and often hybrids or other low-emission cars.
• Lenders set their own rules: often a CO2 limit (commonly 120 g/km or less), an approved model list, and new or near-new cars only (used cars often under 5–7 years old).
• It's secured on the car: the lender registers it on the PPSR and you can't sell it without paying out the loan.
• Rules and rates are the same in every state; only stamp duty and rego, in the drive-away price, differ.

Car loan or novated lease?

• Car loan: paid from after-tax pay, but you own the car, it doesn't depend on your job, and it doesn't add to your reportable income.
• Novated lease: often cheaper for an eligible EV through salary packaging, but tied to your employer, with more fees and tax-test effects.
• Compare both: try our novated lease calculator.

Catches to watch for

• Advertised rate vs comparison rate. The comparison rate adds standard fees, but is based on a set example loan. Our "effective rate" works it out for your own loan.
• Fees. Setup, monthly and early payout fees can wipe out a low rate. Ask for every fee in writing.
• Fixed rate break costs. Paying a fixed-rate loan off early, or making large extra payments, can cost a break fee. Check before you sign if you might sell or upgrade.
• Balloon payments. Lower repayments now, a big bill later. EV prices and resale values have been falling fast, so you could owe more than the car is worth.
• Dealer finance. It's convenient, but compare it with a lender's pre-approval. Dealers can still earn a commission on the loan.
• Add-on insurance. GAP, loan protection and warranty extras sold with the car are optional. Most can't be sold to you until 4 days after you commit to the car, so take time to compare.
• "Green" isn't always cheapest. A standard loan from another lender can beat a green loan once fees are counted.
• Too many applications. Each formal application can show on your credit report. Use quotes and pre-approval wisely.
• Insurance. Lenders usually require comprehensive cover for the life of the loan, and EV premiums can be higher.
• Used EVs. Check the battery health and do a PPSR search before you pay. See our used EV checklist.
• Business use. If the car is for your business, a chattel mortgage may let you claim GST and depreciation. Ask your accountant.

Questions to ask the lender

1. What is the rate, the comparison rate and every fee?
2. Is the rate fixed? What does it cost to pay it off early?
3. Can I make extra repayments, and is there a redraw?
4. Does this car qualify for the green rate (new, used, age, model)?
5. Is a balloon required, or can I choose none?

Running costs matter too: see our EV vs petrol cost calculator.

Official sources

• ASIC — Ban on flex commissions in car finance (18-329MR) — Since 1 November 2018 dealers can't set your interest rate to earn a bigger commission.
• ASIC — Deferred sales model for add-on insurance (21-189MR) — Since 5 October 2021 most add-on insurance can't be sold to you until 4 days after you commit to the car.
• PPSR — Search a vehicle — Check a used car isn't under finance or written off before you buy.
• Green Vehicle Guide (Australian Government) — CO2 emissions per km, which many green loans use to decide if a car qualifies.