4 hours ago
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Electric vehicles from some European brands are now cheaper to finance as a federal government investment entity pitches in $100 million.
Electric Cars
Buyers could save thousands on electric vehicles from European brands, as the government invests a further $100 million to reduce the cost of financing an EV through Volkswagen Financial Services.
Customers can access a discount of "1 per cent" off their interest rate when financing an electric vehicle priced under the Luxury Car Tax (LCT) threshold of $91,387.
Half of the discount offer is funded by the Clean Energy Finance Corporation (CEFC), with Volkswagen Financial Services (VWFS) funding the remaining 0.5 per cent.
The Clean Energy Finance Corporation (CEFC) is a Federal Government-owned investment organisation that invests in initiatives that help Australia reach net-zero emissions.
A similar financial discount using $60 million of CEFC funds was announced for Kia and Hyundai customers earlier in the year.
The CEFC says this offer could represent savings of more than $1900 on a $70,000 loan over five years.
A recent announcement that the LCT threshold will be raised from $91,387 to $120,000 for electric cars as part of a new free-trade deal with the European Union could see the range of electric cars eligible for this offer expand significantly.
Also part of the EU free trade deal is the axing of the 5 per cent import tariff applied to vehicles imported from Europe, though electric cars under the LCT threshold are already exempt from it.
Business buyers of light commercial electric vehicles, such as vans and utes, can also take advantage of the cheaper finance offer, and can do so without the constraint of the LCT-based price cap.
It is unclear which light commercial electric vehicles are offered by brands serviced by Volkswagen Financial Services, other than vans such as the ID. Buzz Cargo.
Volkswagen Financial Services offers financing on a range of models from brands under Volkswagen Group ownership, such as Porsche, Bentley, and Lamborghini, as well as outside its umbrella. However, none of these brands currently offer any electric vehicles priced under $91,387.
In another potential boon for buyers, if optional accessories push the financed price above the LCT threshold, buyers may still take advantage of the 1 per cent discount for the full value of the loan, as long as the car's base price remains under $91,387.
The Clean Energy Finance Corporation claims to have helped finance over 17,000 EVs across its various programs.
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Max is the News Publishing Coordinator for Drive. He enjoys creating engaging digital content, including videos, podcasts, interactive maps, and graphs. Prior to Drive, he studied at Monash University and gained experience working for various publications. He grew up playing Burnout 3: Takedown on the PS2 and was disappointed when real life car races didn’t have the same physics.
