No more loans for petrol, diesel or even hybrid cars, says bank
Victorian bank puts environment before profit by announcing it will only offer loans for electric vehicles from 2025Bank Australia has decreed it will no longer offer personal loans for new internal combustion vehicles – including hybrids (HEVs) and plug-in hybrids (PHEVs) – as of 2025, citing its company-wide push to be carbon neutral by 2035.
“We’ve chosen 2025 because the change to electric vehicles needs to happen quickly,” said the Victorian-based bank on its website the same day some EV lobby groups increased their call for a nationwide ban on the sale of new petrol and diesel cars by 2035.
“And we believe it can happen, as soon as supporting policies and market forces help to bring a greater range of more affordable electric vehicles to Australia.
“This will include a range of new models at lower prices than are currently available in Australia, and second-hand EVs.
“The responsible thing for us to do next is to ensure that our vehicle lending doesn’t lock our customers in to higher carbon emissions and increasingly expensive running costs in the years ahead.”
The bold move does not apply to used cars, however, meaning second-hand vehicles buyers will still be able to borrow from Bank Australia to purchase of their next car.
But if it’s deemed an ‘LEV’ (low-emission vehicle) – one that emits less than 125 grams of CO2 per kilometre – borrowers will be treated to lower interest and comparison rates than those looking to buy a higher-emission vehicle.
Other banks offering similar incentives include Bank First, Bendigo and Adelaide Bank, Police Bank, Regional Australia Bank and Westpac, however, each of their respective CO2/km thresholds varies.
Macquarie Bank is another key player offering discounted interest and comparison rates for car loans, but only for the purchase of battery-electric vehicles – something it actively facilitates with its customers by suggesting vehicles, arranging test drives and negotiating trade-in values.
“The coming decade will determine the true extent of climate change, and there’s a big job to do,” Macquarie’s EV landing page reads.
“We’re committed to accelerating Australia’s transition to electric cars.”
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