Discount loans to rev up Aussie electric vehicle market
Jennifer Dudley-Nicholson |
Demand for electric cars could get a second boost with the launch of a $100 million scheme offering discounted loans on low-emission vehicles.
The Clean Energy Finance Corporation released details of the multimillion-dollar program on Wednesday after signing a deal with Volkswagen Financial Services Australia.
Consumers and commercial enterprises could save hundreds of dollars with the discounted loans that will cut up to one per cent from the standard loan rate.
The offer is one of several financial assistance packages offered through the government-owned corporation, and comes amid heightened demand for electric vehicles and record-breaking fuel prices due to conflict in the Middle East.
Under the program, consumers will be able to access discounted loans on electric cars priced below the Luxury Car Tax Threshold of $91,387 and businesses will qualify when they purchase electric vans or utes.
The corporation will contribute half of the one per cent discount, while Volkswagen provides the other half, and participants could save more than $1900 on a $70,000 loan.
The organisations began work on the scheme before the recent spike in electric car demand, Clean Energy Finance Corporation executive director Richard Lovell said.
“We are hopeful that the timing is fortuitous in that respect,” he told AAP.
“We’ve seen a fairly strong uptick in interest in EVs, so we would expect that to continue but it takes a little bit of time for people to make these decisions.”
The opportunity to upgrade commercial vehicles was often overlooked, Mr Lovell said, but could provide both an environmental and financial benefit.
“People obviously think a lot about passenger vehicles and there’s a lot of conversations about heavy trucks,” he said.
“There is a bit of a middle ground for light commercial vehicles where there’s a strong need and a very strong business case to take up electric vehicles and we are keen to see those out on the road.”
Discounted loans would apply to electric cars from brands including Volkswagen, Volvo, Skoda, Audi and Cupra under the scheme, as well as other vehicles in the group’s dealer network.
Other discounted EV loans provided through the corporation are available through the Commonwealth Bank, ANZ, NAB, Hyundai and Plenti.
The Electric Vehicle Council welcomed the program’s announcement, with chief executive Julie Delvecchio saying it could cement the shift to low-emission transport inspired by high petrol prices.
“Australia has turned a corner on EVs,” she said.
“(This) investment keeps that momentum going by tackling the up-front cost, which is still the number one barrier.”
AAP