The Clean Energy Finance Corporation (CEFC), the country’s main green bank, is committing $100 million to help more Australians and local businesses switch to electric vehicles (EVs), with discounted finance available for new and used eligible EVs.
The investment is being made in partnership with Volkswagen Financial Services Australia (VWFS) but will allow eligible customers to choose from brands as varied as Volkswagen, Audi, Škoda, Cupra, and Volvo, as well as other eligible EVs beyond these brands through VWFS’s accredited dealer network.
The discounted finance offerings will be made available through VWFS and could save up to 1.0 per cent on standard loan rates for eligible EVs, made up of 0.5 per cent from the CEFC and 0.5 per cent from VWFS.
The program covers consumer loans for passenger EVs which will be capped under the luxury car tax threshold and could save customers more than $1,900 on a typical $70,000 loan over five years.
The program also covers commercial loans for light commercial electric vehicles including vans or utility vehicles, and which are not capped by the luxury car tax threshold.
The CEFC and VWFS hope to support the electrification of Australia’s small- to medium-sized business fleets by reducing upfront costs as well as send a signal to manufacturers to begin offering a broader range of EV model options to the Australian market.
Another aspect of the goal of these investments is supporting the future integration of EVs into the electricity grid, with technologies such as vehicle-to-grid (V2G) allowing some EVs to act as mobile batteries, charging or discharging to the grid.
“We’re making it easier for businesses to choose advanced electric vehicles, including those with future-ready features like V2G, by reducing barriers like high upfront costs and by encouraging manufacturers to increase model availability in Australia,” said Richard Lovell, CEFC executive director and head of debt markets.
“This investment helps lower costs today and builds a stronger market for affordable, second-hand EVs tomorrow, making clean transport more affordable for more Australians and their businesses.”