How you could save more than $8000 on an electric car loan: Australian government announces low-interest loans making EVs such as the BYD Atto 3, GWM Ora and MG4 cheaper

The federal government will offer low-interest loans for Australian workers earning less than $100,000 to purchase an electric car.

Federal Minister for Climate Change and Energy, Chris Bowen, this week announced the move, which will open up $150 million worth of funding through the Commonwealth Bank, cutting interest rates to 5.49 per cent per annum from between 6.49 per cent and 10.49 per cent.

Essential workers – such as police officers, firefighters and nurses – will qualify for the loan regardless of income, which will only apply to new and used EVs worth up to $55,000.

That covers EVs like the GWM Ora, MG4 and BYD Dolphin, as well as larger models such as the BYD Atto 3 and Leapmotor C10.

The government claims the loans will help save Australians more than $8000 on a $40,000 loan with a seven-year term, on top of fuel savings.

“Discounted loans help remove barriers to ownership, helping more Australians drive cars that can save them thousands of dollars a year,” said Chris Bowen.

2024 GWM Ora

In addition to the loans, car buyers are already exempt from paying fringe benefits taxes (FBT) on EVs and plug-in hybrids purchased through a novated leasing agreement.

FBT exemptions will end for plug-in hybrid cars on April 1 next year, though the deal will continue for EVs.

2024 MG4 Excite

The news comes as EV demand has softened in Australia as buyers increasingly look to hybrid and plug-in hybrid vehicles as an alternative.

Using combined data from the Federal Chamber of Automotive Industries and the Electric Vehicle Council, Australians have purchased 178,785 hybrid or plug-in hybrid models to the end of November this year, compared to roughly 70,000 EVs.

Interested buyers can access the loans from today.