Electric Car Loans
Special rates for EVs and hybrids. Access government incentives, save on running costs, and drive the future. Compare 60+ lenders.
Get Your Free Quote
Compare 60+ lenders in 2 minutes
By submitting this form, you agree to our Privacy Policy and Terms of Service.
Why Finance an Electric Car in 2026?
Electric vehicle adoption in Australia is accelerating rapidly. In 2023, EVs represented 7.2% of new car sales. By 2025, that figure hit 15%. In 2026, projections suggest 20-25% of new cars sold will be electric or plug-in hybrid. Why? Three factors: government incentives, falling purchase prices, and massive running cost savings.
Purchase price parity: Entry-level EVs like the MG4 ($38,990), BYD Dolphin ($35,990), and GWM Ora ($35,990) are now priced competitively with equivalent petrol cars (Toyota Corolla $32,000, Mazda 3 $33,000). When you factor in government rebates ($3,000 in NSW/VIC) and lower running costs, EVs are often cheaper over 5 years of ownership.
Running cost comparison (15,000km per year):
- Petrol car (Toyota Corolla): Fuel $2,400/year + servicing $800/year = $3,200/year
- Electric car (MG4): Electricity $600/year + servicing $300/year = $900/year
- Savings: $2,300 per year, or $11,500 over 5 years
Tax benefits for business/salary sacrifice: If you're self-employed or your employer offers novated leasing, EVs under $84,916 are FBT-exempt. This means you can salary sacrifice an EV using pre-tax dollars with zero fringe benefits tax, saving 30-40% on the total cost. A $60,000 Tesla Model 3 might effectively cost you $36,000-$42,000 after tax savings.
Electric Car Loan Rates & Terms
Lenders increasingly offer "green car loans" or "EV loans" with preferential rates to encourage electric vehicle adoption:
Typical EV Loan Rates (2026)
- New EVs (excellent credit): 5.99% - 7.49% p.a.
- New EVs (good credit): 7.50% - 9.49% p.a.
- Used EVs (<5 years old): 7.99% - 10.49% p.a.
- Used EVs (5-10 years old): 9.99% - 12.99% p.a.
- Loan terms: 1-7 years (5 years most common)
- Loan amounts: $10,000 - $150,000 (higher for luxury EVs)
- Deposit: 0-20% (10% typical, 0% available with good credit)
Rate discount example: Bank Australia offers 0.70% p.a. discount on new EVs. If their standard car loan rate is 7.49% p.a., their EV rate is 6.79% p.a. Over a $50,000 loan for 5 years, that discount saves you approximately $1,200 in total interest.
Government Incentives by State (2026)
Each Australian state/territory offers different EV incentives. Here's what's available when you finance an EV:
🔵 New South Wales
- $3,000 rebate for new EVs under $68,750 (for individuals earning <$180k)
- Stamp duty exemption for EVs under $78,000 (saves $3,000-$4,000)
- $2,000 toll relief for EV owners
- Free registration for 2 years (ended Dec 2024, check current status)
🟣 Victoria
- $3,000 rebate for new EVs under $68,740
- 50% registration discount (ongoing)
- Stamp duty exemption for EVs under $68,740
- $100 rebate for home charger installation (check eligibility)
🔴 Queensland
- $6,000 rebate for new EVs under $58,000 (ended June 2024, check if extended)
- Registration discount: $0 annual registration for EVs
- Interest-free loans up to $10,000 for home EV charging infrastructure
🟡 South Australia
- $3,000 rebate for new EVs under $68,750 (ended June 2024, may be extended)
- 3-year registration discount (ongoing)
🟢 Australian Capital Territory
- Zero stamp duty on EVs (ongoing)
- 2 years free registration (ongoing)
- Interest-free loans for home charging ($15,000 max)
Note: Incentives change frequently as budgets are exhausted or renewed. Always check your state government's EV website for current offers when applying for finance. At Kreddi, we stay updated on all incentives and can guide you on maximizing benefits.
Popular Electric Cars to Finance in Australia
Here are the most financed electric vehicles in Australia across different price ranges:
Budget EVs ($35,000-$50,000)
- BYD Dolphin: $35,990-$40,990 | 427km range | Perfect first EV
- MG4: $38,990-$45,990 | 450km range | Great value, sporty
- GWM Ora: $35,990-$38,990 | 420km range | Compact city car
- BYD Atto 3: $48,011-$51,011 | 420-480km range | SUV, family-friendly
Mid-Range EVs ($50,000-$75,000)
- Tesla Model 3: $65,400-$85,400 | 510-629km range | Best-selling EV globally
- Hyundai Ioniq 5: $65,000-$75,000 | 430-507km range | Award-winning design
- Polestar 2: $59,900-$74,900 | 470-540km range | Premium Swedish brand
- Nissan Ariya: $65,500-$75,500 | 430-500km range | Spacious SUV
Premium EVs ($75,000-$120,000)
- Tesla Model Y: $75,400-$95,400 | 455-533km range | 7-seater option
- BMW iX3: $85,900 | 460km range | Luxury German engineering
- Mercedes EQA/EQB: $85,000-$95,000 | 420-500km range | Premium interiors
- Audi Q4 e-tron: $89,900-$105,900 | 488-534km range | Tech-packed SUV
Financing tip: EVs under $84,916 qualify for the FBT exemption threshold. If your chosen EV is just above this (e.g., $88,000), consider negotiating with the dealer or trading in your current car to bring the financed amount below the threshold for maximum tax benefits.
How Kreddi Finds You the Best EV Loan
Not all lenders offer EV-specific rates, and those that do have varying criteria. At Kreddi, we know exactly which lenders provide the best terms for electric vehicles:
- Green lender matching: We prioritize lenders like Bank Australia, Teachers Mutual Bank, and Beyond Bank that offer EV rate discounts.
- Incentive maximization: We guide you on stacking government rebates, stamp duty exemptions, and FBT benefits to minimize your total cost.
- Novated lease connections: If salary sacrificing makes sense for your tax bracket, we connect you with novated lease providers (Maxxia, LeasePlan, SG Fleet).
- Battery warranty checks: We ensure your chosen EV meets lender requirements for battery health and manufacturer warranties.
- Fast EV approvals: Because EVs are increasingly mainstream, lenders process them quickly — conditional approval in 24-48 hours.
Real example: A Melbourne customer wanted to finance a $68,000 Hyundai Ioniq 5. We secured them a green car loan at 6.4% p.a. (vs 7.9% p.a. standard rate), helped them claim the $3,000 VIC rebate and stamp duty exemption ($3,500), and structured the loan to maximize their tax deductions as a self-employed consultant. Total savings: $9,000+ over the loan term.
Ready to Drive Electric?
Apply now for special EV rates and access government incentives. Compare lenders and save.
Electric Car Loan FAQs
Yes, many lenders offer discounted rates for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), typically 0.5-1.5% lower than petrol/diesel car loans. For example, if a standard car loan is 7.5% p.a., an EV loan might be 6.0-7.0% p.a. Some lenders like Bank Australia and Teachers Mutual Bank actively promote green car loans with premium discounts. Additionally, EVs under $84,916 (luxury car tax threshold for fuel-efficient vehicles) may qualify for FBT exemptions if used as a novated lease.
Federal government: EVs under $84,916 are exempt from FBT (fringe benefits tax) when provided via novated lease, saving employees thousands annually. State incentives vary: NSW offers $3,000 rebate + stamp duty exemption (EVs under $68,750), VIC offers $3,000 rebate + registration discount, QLD offers registration discount, ACT offers up to 2 years free registration. These incentives change regularly, so check your state's current EV policy when applying.
Yes! Lenders finance used EVs, though terms vary. Most lenders accept EVs up to 7-10 years old (vs 12-15 years for petrol cars) due to battery degradation concerns. Expect slightly higher rates (1-2% more) for used EVs compared to new. Battery health reports (state of health/SOH percentage) may be required for vehicles over 5 years old. Popular used EVs like Nissan Leaf, Tesla Model 3, and Hyundai Kona Electric all qualify for financing.
Lenders prefer EVs with strong manufacturer battery warranties (typically 8 years/160,000km is standard). Tesla offers 8yr/192,000km, BYD offers 8yr/160,000km, and most newer EVs include robust warranties. For used EVs, lenders may require a battery health assessment showing at least 75-80% state of health (SOH). If the battery is degraded significantly, it may affect loan approval or require a larger deposit.
Australians typically save $1,500-$3,000 per year on running costs with EVs: Fuel savings ($2,000-$2,500/year assuming 15,000km, charging at home vs $2/L petrol), lower servicing ($500-$800 less per year - no oil changes, fewer brake replacements), and reduced registration in some states. Over a 5-year loan, total savings can exceed $10,000-$15,000, effectively offsetting the higher purchase price of EVs. Factor these savings into your affordability assessment.
Top financed EVs in 2024-2026: Tesla Model 3 ($65k-$85k), Tesla Model Y ($75k-$95k), BYD Atto 3 ($48k-$55k), MG ZS EV ($45k-$50k), Hyundai Ioniq 5 ($65k-$75k), Polestar 2 ($60k-$70k), Nissan Leaf ($50k-$60k used). Budget EVs like MG4 ($38k-$45k) and BYD Dolphin ($35k-$40k) are increasingly popular for first-time EV buyers. Luxury options like BMW iX ($140k+) and Mercedes EQE ($150k+) require specialist high-value lending.
No, home charging isn't mandatory, but lenders may ask about your charging plan. Having a Level 2 home charger (installed cost $1,500-$3,000) can be included in your loan amount with some lenders. If you don't have off-street parking for home charging, lenders will accept workplace charging or public charging infrastructure as your primary method. Urban apartment dwellers can still get approved if they demonstrate access to regular charging.
Yes, via novated leasing. This is the most tax-effective way to finance an EV in Australia. Your employer deducts lease payments from your pre-tax salary, reducing taxable income. Combined with the FBT exemption for EVs under $84,916, you can save 30-40% on the total cost. For example, a $60,000 EV might effectively cost you $35,000-$42,000 after tax savings over a 5-year lease. Not all employers offer novated leasing, but we can connect you with providers like Maxxia, SG Fleet, and LeasePlan.