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6.09% p.a.
7.22% p.a.
$581
Variable
New
No Max
$8
$400
$34,874
  • Discounted rate on qualifying electric cars
  • Up to 7 yrs loan term
  • Redraw available up to $5,000/day
 Disclosure
5.79% p.a.
6.24% p.a.
$577
Fixed
Used
No Max
$0
$225
$34,624
5.89% p.a.
6.94% p.a.
$578
Fixed
New, Used
No Max
$10
$249
$34,707
6.09% p.a.
7.22% p.a.
$581
Variable
New
No Max
$8
$400
$34,874
 Disclosure
6.19% p.a.
7.31% p.a.
$583
Variable
New
No Max
$8
$400
$34,958
6.25% p.a.
6.52% p.a.
$583
Fixed
New
No Max
$0
$195
$35,009
6.29% p.a.
7.62% p.a.
$584
Variable
New
No Max
$0
$195
$35,042
6.44% p.a.
6.65% p.a.
$586
Variable
New, Used
No Max
$0
$149
$35,169
6.89% p.a.
7.20% p.a.
$592
Variable
New
No Max
$0
$220
$35,549
7.49% p.a.
7.63% p.a.
$601
Fixed
New
No Max
$0
$98
$36,060
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Redraw facility available up to $5000/day
  • Required: Good credit history, stable employment history. Aus citizenship or PR.

More details
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Car loan lender reviews

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What is a green car?

A green car is a car that is better for the environment than standard cars because it produces fewer carbon dioxide emissions. Carbon dioxide (CO2) is a greenhouse gas and one of the biggest contributors to global climate change. It is produced by burning organic and carbon compounds such as petrol so environmentally friendly cars often run on little-to-no fuel.

Some lenders offer a discounted interest rate on car loans for low emission vehicles to encourage borrowers to be more environmentally aware.

So essentially, lower emissions can equal lower interest rates, which means more savings. 

What qualifies as a green car?

A car needs to have significantly lower than average carbon dioxide (CO2) emissions to qualify as a ‘green car’ and this must be compared to other vehicles of its size. This means it doesn't necessarily have to be a hybrid or electric model. 

According to loans.com.au, you are likely to qualify for a green car loan if the car:

  • Is a new or demonstration vehicle
  • Is more fuel efficient than average (when compared to cars of its size)
  • Is a hybrid or electric vehicle (which uses both petrol and electric engines to power the car)
  • Emits less than 141 grams of CO2 per kilometre for a passenger vehicle, or less than 188 grams of CO2 for a ute or van

This information should be displayed somewhere in the vehicle – either on the windscreen or in the service manual.

What are the benefits of owning a green car?

There are a number of benefits involved in driving a green car – both for the environment and for the owner. In particular, green cars:

  • Can reduce the interest rate on a car loan, saving you money over the course of the loan
  • Produce fewer emissions, which reduces the amount of CO2 released into the environment
  • Create less noise than regular vehicles with sole combustible engines
  • Will generally save you money on the cost of fuel as they are more fuel efficient (which means fewer stops at the fuel station)

Can I save money with a green car loan?

A recent initiative to help reduce carbon emissions was the introduction of discounted loans for environmentally-friendly cars. Vehicles which meet the eligibility requirements above can receive interest rates up to 100 basis points lower, saving you money over the course of the loan.

Case study

Damien was looking at taking out a $30,000 car loan (5yr term) when he noticed that his lender offered a 0.7% p.a. discounted rate for green cars. After doing some research, he discovered that while green cars were a little more expensive upfront, he would not only save money from fuel efficiency (and reduce his CO2 emissions) but that he would also save nearly $600 in interest payments over the loan term from the discount he would get from his lender.
Damien decided that the sum of the benefits was worthwhile in buying a car that qualified for a green car loan.

Savings.com.au’s two cents

For some people, the benefits of discounted interest rate and fuel efficiency of green cars outweigh the higher purchase price. At the end of the day, it depends on your personal financial situation.

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Frequently Asked Questions

The process to obtaining a green car loan is very much identical to a regular car loan, with the addition of factoring in fuel emissions and carbon dioxide value to ensure your vehicle meets ‘green' requirements. Lenders will assess the vehicle you intend to purchase as well as your financial position while ensuring you meet the requirements of being over the age of 18, an Australian citizen or permanent resident and having a regular income.

If you are in the market for a new car and are leaning towards purchasing an eco-friendly vehicle, a green car loan can help save you thousands over the life of your loan. While green cars are generally more expensive upfront, the benefits outweigh the costs as you are not only saving money from fuel efficiency but also interest payments across the entire loan term. As mentioned, it’s important to note green car loans are generally restricted to cars with lower fuel emissions, so not all cars are eligible.

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