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Brokers have seen a surge in interest for electric vehicle loans over the past six months.
Recent data released by major bank Commonwealth Bank of Australia (CBA) found that electric vehicle (EV) adoption has risen over the last six months.
In that time, CBA data has revealed an increase of 37 per cent in EV purchases among its car loan customers, when compared to the six months prior.
Additionally, the last 12 months have seen 23 per cent of CBA new vehicle car loans being taken out for EVs and hybrid models, with 17 per cent of total lending for cars (new and used) being EVs or hybrids.
Speaking to The Adviser, senior mortgage broker at Aussie Home Loans Southbank Victoria, Sabin Sthapit, said he’s observed many clients “asking about EV purchase costs and running costs.”
“This is mainly because of the rise of fuel prices. If you compare two cars with monthly expenses including repayments, you will save money buying a slightly more expensive EV when you add together fuel, repayments and regular engine maintenance,” Sthapit said.
Sthapit added that once customers understand the overall picture of buying an EV versus a normal car, “they choose EV”.
Finance and mortgage broker at Premium Select Finance, Lalendra Sharma, said he has also observed a rise in demand for EV loans.
“I believe prices getting cheaper for electric vehicles is one of the main reasons for this rise [in demand],” Sharma stated.
“As more and more brands come into the market, prices are becoming more competitive, reasonable and cost-effective.
“This, in turn, has created higher levels of interest in buyers to go for electric vehicles. I have seen EVs in the market now for around $36,000 with low maintenance costs.”
CBA’s green business loan
This data came as the major bank announced the launch of a new loan product – Business Green Loan – which aims to support businesses looking to finance assets and initiatives that promote environmental sustainability.
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The loan offering, which launched to customers on Tuesday (12 March), is available through brokers, the major bank stated.
In a statement to The Adviser, a spokesperson for CBA said: “The Business Green Loan is available through brokers to our business customers with a relationship manager. These are typically mid to larger-sized corporates.”
The loan requires the business to have a loan or cash balance of more than $1 million and has a variable interest rate starting at 6.49 per cent.
[RELATED: CBA launches new green loan for businesses]
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