Are loans on hybrids & EVs more expensive?
Electric vehicles (EVs) and hybrids have been available on the Australian car market for quite some time but the take-up was quite slow, due apparently at least in part to a lack of infrastructure and in particular charging stations. But recent sales figures have shown a marked upsurge in their popularity. The Federal Automotive Chamber of Industries reports that in January to May 2020, sales of EVs by private buyers was up 56% on the same period in 2019. And the 2020 period was in a COVID-19 environment.
The reason for this increase? We don’t have a definitive answer but the rising mood globally on climate change especially throughout 2019 with the movement pushed by teenager Greta Thunberg could be a reason that more people are looking for ways to do their bit to reduce the use of fossil fuels. In addition, through the end of 2019 and the start of 2020, Australia experienced one of if not the worst bush fire season on record. A sombre reminder of the importance of climate change.
Another reason that the uptake of EVs has been slow may also be the pricing. The pricing of hybrids and EVs has traditionally been higher than conventional petrol and diesel engine vehicles in the same range. An issue which has led some people with the misapprehension that because the vehicle purchase price is higher, their car loan will also be priced higher.
That is an issue which we are keen to clarify. Read on….
Jade Car Loans for Hybrids
Jade sources the best quote based on the cheapest interest rate for all our car loan customers, regardless of whether it is petrol, diesel, fully electric or a hybrid model. The interest rates we source and lender guidelines are not driven by the fuel type. Getting a cheaper rate and a better loan is driven by the negotiating skill of our consultants and the large number of banks and lenders that we are accredited with. This large lender panel gives us wider scope to get you the cheapest loan.
Some individual lenders do have guidelines for car loans in regard to vehicle specifications that relates primarily to the age and condition of used cars. With some older models of any brand of car, the lender may request the borrower pay a higher deposit. Your Jade consultant will discuss this with you IF it applies to your car loan.
For most buyers of EVs and hybrids your Jade car loan will be the same pricing relative to a comparably priced petrol or diesel vehicle. The interest rate and loan repayments are based on the total loan amount which relates to the purchase price of the car.
More expensive cars usually have higher monthly repayments. But you can request to vary the length of the loan term in order to reduce the monthly repayments. The longer the loan term the lower the monthly repayments. Alternatively, you may choose to pay a deposit to the dealer to reduce the overall loan amount which will in turn reduce the monthly repayments.
Private Buyer Loans
For private buyers of hybrids and fully electric vehicles, Jade Car Loans offers the Secured Car Loan. With this loan, the lender uses the car as security against the loan. Your Jade consultant sources you the cheapest interest rate which is fixed for the loan term. The repayments are in monthly instalments which are also fixed. You are permitted to make extra payments if you choose. It’s a very popular and straightforward loan type.
Business Car Loans
Many business operators are considering hybrids more often as a potential means of reducing their fuel costs. For business buyers, we offer a selection of the most popularly used commercial finance products:-
- Car Leasing: an off- balance sheet loan which is suited to the accruals method of accounting.
- Chattel Mortgage: a commonly used loan which is suited to the cash accounting method.
- Commercial Hire Purchase: also very popular with business buyers.
All loan types have an option for a balloon or residual which can be varied to reduce the repayments.
Best Hybrid Vehicles in Australia
As hybrids and electric vehicles have become more popular, logically the market has responded and more and more manufacturers are including these models in their line-up. We are regularly seeing motoring industry news items with ‘first EV for xyz manufacturer’. So these vehicles are becoming more widely available. So what are the best hybrid vehicles in Australia? We went to a leading industry publication source for their take on the subject.
According the industry sources the leading contenders are:
Toyota taking the 3 top spots with the Corolla SX Hybrid, RAV 4 GL Hybrid and the Camry Ascent Sport Hybrid. Next comes the Mitsubishi Outlander PHEV followed by the Hyundai Ioniq and then the BMW X5 xDrive45e. Lexus and Volvo models also made the top list.
So you have your choice of a hybrid vehicle in the more budget range through the classic business sedan, in an off road vehicle and in luxury market vehicles.
When it comes to a cheap car loan for your hybrid vehicle, the best choice is Jade Car Loans!
For a quote on a loan for a hybrid or fully electric car, speak with a Jade Car Loans consultant 1300 000 003
DISCLAIMER: NO LIABILITY IS ACCEPTED BY JADE CAR LOANS IN THE PRESENTATION OF INFORMATION AS SOURCED FROM MANUFACTURER AND GOVERNMENT WEBSITES AND DOCUMENTS. THE INFORMATION IN THESE ARTICLES IS INTENDED FOR GENERAL CONSIDERATION ONLY. THE INFORMATION FROM THIRD PARTIES IS SOURCED VIA THE PUBLIC DOMAIN IN MANY INSTANCES AND NO LIABILITY IS ACCEPTED FOR MISREPRESNTATION OR ERRORS. READERS ARE ADVISED TO CHECK SPECIFICATIONS WHERE NECESSARY. FOR FINANCIAL ADVICE ON YOUR SPECIFIC FINANCIAL SITUATION AND TO MAKE DECISIONS AROUND FINANCE, ALL PERSONS ARE STRONGLY RECOMMENDED TO CONSULT WITH THEIR ACCOUNTANT OR THEIR FINANCIAL ADVISOR.