Compare Green Car Loans

Green car loans are a type of secured car loan designed to help you buy an environmentally friendly car, such as an EV or hybrid vehicle. They work much the same way as any other secured car loan, where the vehicle acts as security for the loan. However, the key difference is that green car loans often come with discounted interest rates and reduced fees, rewarding you for choosing a low-emission vehicle. If you're looking for a green loan, comparing with Savvy can help you find the right loan to suit your needs and budget.

A green car loan can help you finance a wide range of low-emission vehicles. Common eligible models include:

• Electric vehicles (EVs): also known as battery electric vehicles (BEVs), these cars run on 100% battery power, needing to be recharged via a plug-in electricity source, such as a Tesla.
• Plug-in hybrid electric vehicles (PHEVs): one of two types of hybrid vehicle currently available, PHEVs run on both electricity and petrol and, as the name suggests, can be charged via a plug-in electricity source.  Popular models include the BYD Sealion and Mitsubishi Outlanders.
• Hybrid electric vehicles (HEVs): these also operate on both electricity and petrol but aren’t able to be charged like PHEVs. Toyota dominates this category with its Corolla and Rav4 models.
• Hydrogen fuel cell vehicles: powered by electricity from a reaction between hydrogen and oxygen, these vehicles produce zero tailpipe emissions and refuel faster than EVs. However, hydrogen refuelling infrastructure and vehicle options are currently limited in Australia – as of 2025, the only hydrogen vehicles available are the Toyota Mirai and the Hyundai Nexo for special order.

Different lenders will have varying criteria for what qualifies, but typical requirements include:

• Emissions: your vehicle must release less than your lender’s maximum CO2 emissions per kilometre to meet the green loan requirements. This will generally be between 100g and 150g per kilometre.
• Vehicle age: you may be required to purchase a new or ex-demonstrator model, rather than a used vehicle that’s a few years old.
• Fuel efficiency: if you’re buying a car that is partly or fully petrol-run, your lender will  want to see that it has a strong fuel economy. 

If you’re unsure whether a vehicle qualifies, it’s best to check your lender’s green car loan criteria or consult resources like the Green Vehicle Guide.

The most popular green cars in Australia: 2024

The following statistics are for the most recent completed year of 2024 and are obtained through the FCAI’s VFACTS data.

Electric vehicles

Hybrid vehicles

PHEVs

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How much can I save with a green car loan?

Choosing a green car loan can save you money compared to a standard car loan, thanks to lower interest rates and reduced fees. Some green loans offer rates from as low as 5.5% p.a., and even small differences in rates and fees can add up to big savings over time. Take the following example:

Calculations based on a $60,000 car loan repaid over five years.

As you can see, you’d stand to save over $1,600 by opting for the green car loan.

However, these loans can sometimes come with stricter car eligibility requirements. Each lender will have its own set of criteria and/or approved lists of low-emission vehicles, so it’s important to confirm your car qualifies before applying.

It may also be worth looking into novated lease options for your electric or hybrid vehicle. A novated lease can offer significant tax savings, particularly for EVs and PHEVs that qualify for fringe benefits tax (FBT) exemptions under the Luxury Car Tax (LCT) threshold, potentially lowering your overall vehicle costs even further.

Are there any incentives for buying a green car in my state?

Depending on where you live in Australia, you may be able to benefit from EV incentives. The following states and territories currently have schemes in place:

• The ACT offers incentives for zero-emissions vehicles, including no motor vehicle duty, discounted registration and no-interest loans of up to $15,000 for eligible buyers.
• The Northern Territory offers EV and plug-in hybrid owners free registration and a stamp duty concession of up to $1,500 from 1 July 2022 until 30 June 2027.
• South Australia’s subsidy scheme, which offered a $3,000 subsidy on new battery and hydrogen fuel cell vehicles, closed on 1 January 2024. However, a three-year registration exemption for eligible vehicles still applies until 1 July 2025.

Green car schemes have now closed in these states:

• New South Wales’ Electric Vehicle Strategy, which allowed NSW residents to apply for a $3,000 rebate for eligible EV purchases, ended on 1 January 2024. However, if you placed a deposit on a vehicle prior to this date and it hasn’t been delivered, you’ll still be eligible.
• Queensland offered the largest EV subsidy in Australia, with rebates of up to $6,000 on eligible cars through the Zero Emission Vehicle Rebate Scheme. However, the scheme closed to new applications on 2 September 2024.
• Tasmania’s Electric Vehicle Rebate program provided $2,000 for new and second-hand (but ‘new to Tasmania’) EVs, up to a total of $750,000. As of May 2025, this program is now closed.
• Victoria’s Zero Emissions Vehicle Subsidy Program was the first in Australia, but is now closed to new applicants.
• Western Australia’s Zero Emission Vehicle (ZEV) Rebate Scheme , which offered a rebate of $3,500 for eligible EVs or hydrogen vehicles registered in the state, closed on 10 May 2025.

The pros and cons of green car loans​