Discount loans to drive down the price of electric cars
Jennifer Dudley-Nicholson |
Motorists will be offered another incentive to choose electric over petrol through a $60 million program to cut the cost of car loans.
The Climate Energy Finance Corporation announced the scheme in partnership with Hyundai on Tuesday, revealing it could reduce a $70,000 loan by more than $1900 over five years.
The discount program is one of several funded by the corporation, and comes as the federal government reviews Australia’s electric car tax exemption and considers a road-user charge.
The latest electric car loan discounts will apply to fully electric Hyundai and Kia vehicles priced under the luxury car tax threshold of $91,387, and will save buyers between 0.5 and one per cent.
Eligible models could include the Hyundai Ioniq 6 sedan and Kia EV 5 SUV.
The program was designed both to give consumers greater vehicle choice and cut the nation’s transport emissions, Energy Minister Chris Bowen said.
“This CEFC investment will lower the cost barrier for households and small businesses, making EV ownership more accessible,” he said.
“Transport is one of our biggest sources of emissions and electric vehicles are a key way we cut pollution while saving people money.”
Transport contributes 22 per cent of Australia’s carbon pollution, according to government figures, and the Climate Change Authority found half of new light vehicle sales would need to be electric by 2035 to meet environmental targets.
Reducing the purchase price of the vehicles could help sway motorists who are considering low-emission options, Hyundai Capital Australia chief executive Donglim Shin said.
“Electric vehicles are an important part of Australia’s mobility future but cost can be a barrier for many customers,” he said.
Investments in electric cars could also support renewable energy technology, the energy finance corporation’s debt markets executive director Richard Lovell said, such as vehicle-to-grid technology that allows the cars to work as home batteries.
The discount car loan program is not the first to receive government funding from the corporation, with financial support also offered to electric vehicle purchases through the Commonwealth Bank and Splend.
The cheaper loans could soon be one of the only financial incentives offered for electric car purchases, however, after state governments removed rebates and the federal government has launched a review into its fringe benefits tax exemption for the vehicles.
Australians purchased more than 103,000 new electric cars in 2025, according to the Federal Chamber of Automotive Industries and Electric Vehicle Council, representing 8.3 per cent of all new cars sold.
AAP
