Westpac has announced that it plans to offer lower interest rates to those looking to purchase an electric, plug-in hybrid, or hybrid vehicle in an effort to increase the uptake of electrified vehicles in Australia.
“We know that cost is one of the biggest barriers to hybrid and electric vehicle uptake, so this offer can help more customers transition to a greener vehicle,” said Chris de Bruin, Westpac chief of consumer and business banking.
“Given the recent increase in petrol prices, electric and hybrid vehicles appeal to the environmentally conscious, and the financially conscious too.”
Westpac will execute the move via the introduction of a new product, named the Hybrid and Electric Car Loan.
The product offers a fixed interest rate of 4.99%pa (as opposed to the 6.21%pa comparison rate) over a one to seven-year period.
The loan can be used on vehicles that are either new or used, valued between $10,000 and $100,000. The product allows users to borrow an additional 10% in order to cover on-road costs.
Alongside the announcement of the plan, Westpac has also issued a 93-page long document detailing all the cars eligible for the preferential loan product.
The document appears includes numerous cars unlikely to be available for under $100,000 (including the Honda NSX), while also not including some grey import models.
Westpac’s announcement follows the recent change of government, with Anthony Albanese’s Labor Party set to introduce more comprehensive electric vehicle reform.
“We expect demand for these vehicles will continue to rise, with many Australians already planning to make the change,” de Bruin added.
“We’re also seeing new government incentives, improved access to charging stations, and more manufacturers offering hybrid and electric vehicles, which will help accelerate the transition.”
