Discount loans to rev up Aussie electric vehicle market
Demand for electric cars could get a second boost with the launch of a $100 million scheme offering discounted credits for low-emission vehicles.
The Clean Energy Finance Corporation announced details of the multimillion-dollar program on Wednesday after signing a deal with Volkswagen Financial Services Australia.
Consumers and commercial businesses will be able to save hundreds of dollars with discounted loans, which they can benefit from with discounts of up to one percent off the standard loan interest rate.
The offer is one of several financial aid packages offered through the state-owned company and comes at a time of rising demand for electric vehicles and record-breaking fuel prices due to conflicts in the Middle East.
Under the program, consumers will have access to discounted credits for electric cars priced below the $91,387 Luxury Vehicle Tax Threshold, and businesses will be eligible for the credit when they purchase an electric pickup truck or vehicle.
The company will contribute half of the one percent rebate, Volkswagen will provide the other half, and participants can save more than $1,900 with a $70,000 credit.
Richard Lovell, chief executive of the Clean Energy Finance Corporation, said utilities began working on the program before the recent surge in demand for electric cars.
“We hope the timing is coincidental in that respect,” he told AAP.
“We’ve seen a pretty strong increase in interest in electric vehicles, so we expect that to continue, but it does take some time for people to make those decisions.”
Mr Lovell said the opportunity to upgrade commercial vehicles was often overlooked, but it could provide both environmental and financial benefits.
“It’s clear that people are thinking a lot about passenger vehicles, and there’s a lot of talk about heavy trucks,” he said.
“There is some middle ground for light commercial vehicles, where there is a strong need for electric vehicles and a very strong business case, and we want to see those on the roads.”
Within the scope of the program, discounted loans will be valid for electric cars of brands such as Volkswagen, Volvo, Skoda, Audi and Cupra, as well as other vehicles in the group’s dealer network.
Other discounted EV loans available through the company are available through Commonwealth Bank, ANZ, NAB, Hyundai and Plenti.
The Electric Vehicle Council welcomed the announcement of the programme, with CEO Julie Delvecchio saying it could strengthen the transition to low-emission transport inspired by high oil prices.
“Australia has turned a corner on electric vehicles,” he said.
“(This) investment continues that momentum by overcoming the up-front cost, which remains the number one hurdle.”
