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As more Australians consider making the switch to electric vehicles (or EVs), financing is becoming a key part of the decision-making process.
While EVs can offer long-term savings through lower running and maintenance costs, the upfront price can still be higher than a petrol or diesel car. In this article, we explain the varied costs of owning an EV, and what other factors you should consider when deciding whether to purchase an EV.
At IMB Bank, we know that understanding your electric vehicle financing options is just as important as choosing the right car. This guide covers everything you need to know about getting an electric car loan in Australia, including requirements, interest rates, and how to apply. So, let’s start: financing an electric car?
Can You Get a Loan for an Electric Vehicle?
Yes, you can absolutely finance an electric car in Australia. In fact, demand for EV loans is growing alongside the rise in electric vehicle adoption.
While there are many government incentives designed to help Australians buy an electric vehicle, we understand that for many, this isn’t quite enough to make the purchase. That is where financing can help. Most lenders now offer car loans that can be used for EVs, just as they would for petrol or hybrid vehicles. In addition, some lenders provide specialised green car loan products, designed to support environmentally friendly purchases.
At IMB Bank, our financing options for electric vehicles are included as part of our car loans criteria. We offer three different types of loans for cars and financing:
- New car loan
- Secured personal loan
- Unsecured personal loan.
You can find out more about our car loans here.
What are the EV Car Loan Requirements?
EV car loans have a similar application process to a standard car loan. Before applying, it is important to understand what these requirements are and what additional information or documentation you may need to supply.
Just like with standard vehicle car loans, lenders will generally assess your:
- Income and employment stability
- Credit history
- Existing debts and expenses
- Ability to repay the loan.
However, unlike standard car loans, you will also need to provide details about the vehicle you plan to purchase, including whether it meets any eligibility criteria for green loan products.
These types of loans are not available from every lender, so make sure you do your research before applying for any type of car loan. There are also federal and state incentives to support your car purchase.
How do I Apply for an Electric Car Loan?
Understanding how to apply for an electric car loan can make the process smoother and faster.
Start by reviewing your budget and determining how much you can afford to borrow.
Once you understand this, you can pick a car that suits your needs: is it a family car you’re looking for? Or perhaps a starter car? There are plenty of options now readily available in Australia, from known electric brands like Tesla, to EV options in more traditional, established car brands, like Toyota, Jeep, Hyundai and more. The EV sector continues to grow, with more brands and vehicles on offer each year.
From there, compare lenders and loan types to find an option that suits your needs.
Once you are ready to apply for a loan, the process typically involves submitting an application with supporting documents such as proof of income and identification. After approval, funds are either paid directly to the seller or provided for you to complete the purchase.
Many lenders, including IMB Bank, now offer online applications, making it easier than ever to get started.
Ready to Get Started?
Thinking about applying for a loan for your electric vehicle?
At IMB, we are here to support you every step of the way. If you’d like more information on our different types of car loans, please check out our car loans page. We regularly update this with our latest rate offerings, so this may be subject to change. Alternatively, get in touch with one of our friendly team members, and we’ll be happy to help.
