What is a Green Car Loan
A green car loan is a car financing particularly for eco-friendly vehicles. It is accepted that eco friendly vehicles are cars that generate less carbon dioxide emissions than old fashioned fuel powered cars. Lower carbon emission means less pollution in enviroment.
Green car loans are new in Australian lending market. Not every lender provides special Green car loans. This will increase as Australia look forward to adopt electric vehicles.
ACT state government plans to ban the sale of new petrol cars from 2035.Bank Australia intends to close car loans financing for petrol cars from 2025.
Pros & cons of green car loans
- Few lenders may waive certain fees on green car loans
- Green car loans have lower interest loans than regular loans
- The lending criteria for green loans is strict
- Green car loans are not widely available
- Green car loans only for new cars
- Purchase cost of a green car may be higher than ordinary regular car
How do green car loans work?
Green car loans works the same way as regular car loans works
- First you need to compare your lending choices and select a loan provider that will lend you the amount to buy your green vehicles
- You will repay the borrowed loan additional interest in standard installments predetermined length of time.
What type of car can you purchase with a green car loan?
Green cars include those have lower Carbon dioxide emissions that a comparable model and market.Green cars are hybrid and electric vehicles (EVs).
- Hybrid Electric Vehicles (HEVs) Those vehicles that are powered by a petrol and electricity.They do not need a plug to be charged as battery pack is charged by engine when driving.
- Battery Electric Vehicles (BEVs) BEVs are powered by electricity. Need a plug into a energy source to be recharged.
- Low emission vehicles Few models of new cars are classified as low emission vehicles despite fuel by petrol.
- Plug-in hybrid electric vehicles (PHEVs) PHEVs are combination of electricity and petrol. They can be plugged into an energy source to be recharged
How can a green car loan save you money?
Investing in a low emission vehicles save your money on finance and reduce emission of carbon into environment. Green car loans is lower than standard car loan interest rates. The lender may waive some charges fees on the car loan.
What are the features of green car loan?
The loan term is the duration you have to payoff the loan.Car loans generally have 3 to 5 years. Longer duration of loan term the longer you have to pay interest rates.
These types of fees are early payment fees,exit fees, monthly fees upfront fees.
- Secured vs Unsecured loan
- Fixed or variable interest rates
- Comparison rates
- Extra features