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A non-bank lender has received a $40 million investment by the CEFC to provide discounted finance for its retail green car loan.
The Clean Energy Finance Corporation’s (CEFC) investment with the non-bank lender is expected to finance a further 900 electric vehicles with the discounted finance aiming to save customers between approximately $1,400 and $2,500, depending on loan size and length.
In addition, the investment will allow eligible Firstmac customers to benefit from a 0.5 per cent discount for the life of their loan with another 0.5 per cent discount given by the non-bank lender.
Firstmac is also extending the discount to electric vehicles priced under $90,000 in order to encourage manufacturers to make more electric vehicle models available to the market, so long as emission standards are met.
Only the lowest emissions electric vehicles will have the CECF finance available. The criteria for green vehicles have been raised to exclude low-emission ICE vehicles, conventional hybrid vehicles and plug-in hybrid vehicles with tailpipe emissions of more than 50g CO2/km.
According to the CEFC, its investments into electric vehicle ownership in Australia have already supported an estimated $230 million of retail and commercial green finance, helping put more than 3,000 electric vehicles and plug-in hybrids on the road.
Firstmac managing director Kim Cannon said: “We are pleased to continue our successful collaboration with the CEFC to offer discounted electric vehicle loans.
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“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.”
CEFC head of debt markets Richard Lovell said electric vehicles are “no longer only for early adopters”.
“We know the dynamics of EV ownership are changing dramatically and more Australians want to buy electric vehicles,” Mr Lovell said.
“However just 6.8 per cent of all new cars purchased in Australia in February were electric, pointing to a big gap between buyer preferences and vehicle availability.”
Mr Lovell added that Australia’s uptake of new low-emissions vehicles is nearly “five times lower than the global average”, partially as a result of supply constraints.
“This is an important factor behind our decision to target our finance to electric vehicles priced under $90,000, subject to strong emissions standards, as well as to back the agnostic approach to vehicle manufacturer adopted by Firstmac,” he said.
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