Have you considered purchasing an electric vehicle Their interest rates are decreasing.

It wasn't long ago that purchasing an electric vehicle (EV) seemed like something out of a science fiction movie. However, with EV loan interest rates recently lowering to under 3%, switching electric is becoming more of an everyday, normal household budget decision.

According to the most recent data from the Electric Vehicle Council, plug-in EV sales nearly tripled in the last year, rising from 6,900 in 2020 to 20,665 in 2021.

As a result, electric vehicles now account for 1.95 percent of new vehicle sales.

That may not appear to be a lot. However, the federal government expects it to climb to 8% by 2025 and 30% by 2030.

Major lenders are also vying for first place in the electric vehicle sector.

Macquarie, for example, sent out an email this week offering homeowners comparing rates on electric automobiles starting at 2.99 percent per year. (Based on a $30,000 loan with a five-year term).

The Macquarie email adds, “We’re thrilled to be the first Australian banking group to offer a specialized electric car-buying service that can assist you make the move to an electric car.”

So, how does that rate stack up against a traditional auto loan?

So, let’s assume you were also considering buying a conventional vehicle with an internal combustion engine from Macquarie (ICE).

For a new ICE vehicle, you may expect a comparative rate of 6.48 percent to 7.15 percent, depending on the loan-to-value ratio.

That’s a significant difference from the current electric vehicle tariffs.

What is driving the increased adoption of electric vehicles?

According to the Electric Vehicle Council, increasing model availability, dropping vehicle costs, and increased knowledge of the economic and environmental benefits of EVs are changing how consumers think about their transportation options.

Here’s a rundown of what’s available in Australia right now. The MG ZS EV, which costs roughly $48,990, is one of the most affordable alternatives now available.

In the $53,000 to $55,000 bracket, Hyundai and Nissan also have options.

Governments are also making significant moves in this area, with some state governments offering $3,000 rebates.

The government of New South Wales, for example, announced plans earlier this month to install over 1,000 EV fast-charging stations over the next four years.

Get in contact with us if you’re looking to buy a car.

As electric vehicles grow more popular in Australia, it’s logical to assume that more lenders would bend over backwards to offer competitive rates.

So, if you’re looking to buy a car that will last you 5 to 10 years and are thinking about switching to an electric vehicle, get in contact and we’ll help you crunch the figures to see if an electric vehicle loan is the right fit for you.

And if it’s still not quite right, we can assist you out with an ICE automobile loan instead!

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au

Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your situation and may not be relevant to circumstances. Before taking any action, consider your particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.

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