Discounted finance is being offered for the non-bank’s retail green car loan offering
The federal government’s Clean Energy Finance Corporation has injected another $40 million investment to enable eligible Firstmac customers to get discounted finance for the non-bank’s retail green car loan offering.
CEFC has so far supported an estimated $230 million of retail and commercial green finance, putting more than 3,000 EVs and plug-in hybrids onto Australian roads, with this latest CEFC investment with Firstmac expected to finance at least a further 900 EVs.
Under the loan scheme, EV buyers can save an estimated $1,400 to $2,500 when taking out a loan for an EV through Firstmac, depending on the size and length of the loan.
Firstmac’s retail green car loan offering, available for the lowest-emissions EVs, will provide eligible customers a total 1% discount – 0.5% from CEFC and the other 0.5% from the non-bank – compared to the equivalent interest rate charged to Firstmac borrowers buying internal combustion engine (ICE) vehicles.
Firstmac is extending the discount to EVs priced under $90,000, provided strong emission standards are met, to encourage the launch of more EV models to the market.
“Electric vehicles are no longer only for early adopters,” said Richard Lovell (pictured above left), CEFC head of debt markets. “We know the dynamics of EV ownership are changing dramatically and more Australians want to buy EVs. However just 6.8% of all new cars purchased in Australia in February were electric, pointing to a big gap between buyer preferences and vehicle availability.
“Australia’s uptake of new low-emission vehicles is also nearly five times lower than the global average, partly due to supply constraints. This is an important factor behind our decision to target our finance to EVs priced under $90,000, subject to strong emissions standards, as well as to back the agnostic approach to vehicle manufacturer adopted by Firstmac. Together these factors should encourage manufacturers to make a broader range of EV models available to Australian buyers.”
“We are pleased to continue our successful collaboration with the CEFC to offer discounted EV loans,” said Kim Cannon (pictured above right), Firstmac managing director. “We have a policy of minimising the impact of our operations on the environment and leading the way on climate change. These popular loans are a valuable tool in the fight to cut vehicle-based emissions, because they mean that people can save money and help the environment at the same time.”
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