The Clean Energy Finance Corporation (CEFC) has committed up to $60 million to partner with Hyundai Capital Australia (HCAU) to reduce the upfront cost of EV ownership by offering discounted finance on eligible Hyundai and Kia electric vehicles.
Eligible customers could save a minimum of 0.5% and up to 1.0% on their finance rate. On a $70,000 loan, a 1.0% discount over five years could save more than $1,900 in interest costs.
The discounted finance will be available for new, fully electric vehicles priced below the luxury car tax threshold, supporting households and small businesses to make the switch to cleaner transport.
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Minister for Climate Change and Energy Chris Bowen said the initiative was about offering consumers more choice for their next vehicle.
“This CEFC investment will help lower the cost barrier for households and small businesses, making EV ownership more accessible” Minister Bowen said.
“Transport is one of our biggest sources of emissions, and electric vehicles are a key way we cut pollution while saving people money.”
Rewiring Australia has welcomed the move as good news for Australians in the market for a new car, but says money could still be better spent investing in policies which benefit everyone.
“These discounts are about helping Australians switch to cars that are cheaper to run, better to drive, powered by Australian-made energy, and ultimately better for planet Earth,” Rewiring Australia CEO Francis Vierboom said.
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“Every new petrol car sold today is effectively a 20-year subscription to imported fossil fuels, locking households into higher costs for decades.
“Transport is on track to become Australia’s biggest source of carbon pollution and the solution is a relatively straightforward one in that we just need to make EVs the more favourable option to consumers, which this announcement helps do.
“But we still need to do more for lower-income homes. These kinds of loans work well for upper-middle income folks who can easily make regular repayments but leave behind Australians who need help the most.”
