Westpac new loan for hybrid or electric cars

  • By Zilla Efrat

Westpac has launched a new car loan for customers wanting to purchase a new or used hybrid or electric vehicle.

The move follows Westpac consumer research findings that 70 per cent of Australians plan to own a hybrid or electric vehicle in the future, and 34 per cent of petrol and diesel drivers are considering making the switch for their next car.

The car loan rates start from 4.99 per cent per annum (comparison rate 6.21 per cent) and will enable customers to borrow between $10,000 and $100,000 to finance their eligible hybrid or electric vehicle purchase.

“We all have a part to play in helping Australia move toward net zero. We know that cost is one of the biggest barriers to hybrid and electric vehicle uptake, so this offer can help more customers transition to a greener vehicle,” says Chris de Bruin, Westpac chief executive, consumer and business banking.

“Given the recent increase in petrol prices, electric and hybrid vehicles appeal to the environmentally conscious, and the financially conscious too. We expect demand for these vehicles will continue to rise, with many Australians already planning to make the change.

“We’re also seeing new government incentives, improved access to charging stations, and more manufacturers offering hybrid and electric vehicles, which will help accelerate the transition.”

Westpac’s research also revealed that more than two thirds (67 per cent) of Australians believe that the cost of the car is the biggest barrier to owning a hybrid or electric vehicle.

 Saving on fuel (78 per cent), lower running costs (69 per cent) and reduced carbon emissions (60 per cent) were the top motivators for consumers when considering a hybrid or electric vehicle.

Westpac is a member of Australia’s Electric Vehicle Council, which aims to accelerate the electrification of vehicles for a more sustainable country.

“This new loan offer presents another great opportunity for Australians to save by going electric,” says Behyad Jafari, CEO of the Electric Vehicle Council.

"We know the majority of Australians are now actively considering an electric vehicle as their next car and this initiative will help them make the shift. Given the average Australian household currently spends $3,700 a year on petrol and diesel, the purchase of an electric vehicle would ease real pressure on the monthly budget.”

The new rate is available for eligible new and used hybrid and electric vehicles up to seven years old.