Bank Australia cuts petrol and diesel car loans from 2025

In a bid to promote a greener future, Bank Australia has announced it will stop funding new loans for petrol and diesel cars from 2025.

The move is part of the bank’s commitment to fight climate change and achieve net zero carbon emissions by 2035.

Sasha Courville, Head of Impact at Bank Australia, said that encouraging the switch to electric vehicles (EVs) will be an important step in decarbonising Australia’s economy.

“By ceasing car lending for new fossil fuel vehicles, we are sending a signal to the Australian market about the rapidly accelerating transition from internal combustion vehicles to electric vehicles that we expect to see in the coming years,” he said. declared Ms. Courville.

“We chose 2025 because the shift to electric vehicles needs to happen quickly, and we believe it is possible with the right supporting policies in place to bring a wider range of more affordable electric vehicles to Australia.”

Bank Australia made the announcement at the National Electric Vehicle Summit in Canberra and would be the only bank in Australia to have a net zero emissions target by 2035.

The bank will continue to support customers who cannot yet access an electric vehicle, by offering financing for used petrol and diesel cars.

“While we are ending car loans for new fossil fuel cars from 2025, we are keenly aware that we need to support people who are not yet able to afford an electric vehicle while the market continues to grow. develops,” Ms. Courville said.

“We will continue to offer loans for used fossil fuel vehicles until there is a viable and thriving market for electric vehicles.”

A number of factors have prevented Australian drivers from entering the electric vehicle market, including the lack of available charging stations, long waiting lists and high prices compared to gasoline-powered vehicles.

It is estimated that 43% of transport emissions in Australia currently come from passenger vehicles.

Changes in the electric vehicle market

The Albanian government recently pledged to help improve the availability of electric vehicles, establishing Australia’s first National Electric Vehicle Strategy.

The strategy is to improve the uptake of electric vehicles and improve affordability and choice by growing the electric vehicle market in Australia.

The government has already taken steps to make electric cars cheaper by waiving employee benefits tax and the 5% import tax for qualifying electric vehicles.

The new strategy also involves setting up a national electric vehicle charging network.

Charging stations will soon be available at an average interval of 150km on major Australian roads.

Climate Change and Energy Minister Chris Bowen said the National Electric Vehicle Strategy is needed for the 21st century.

“Until now, Australian households and businesses had very little choice when it came to low-emission, fuel-efficient vehicles, and they paid for it,” Mr Bowen said.

“The National Electric Vehicle Strategy is designed to make electric vehicles cheaper, increase their use and deploy more charging infrastructure, ensuring that more Australians can access these vehicles and reap the benefits.”


Looking for a new car? The chart below shows green car loans with some of the lowest interest rates on the market for low-emission vehicles.


Fixed New 1 year More details
Variable New, used 99 years old More details
Variable New, used 99 years old More details
Fixed New, used 99 years old N / A More details

Fixed rate green car loan

Variable New 99 years old More details

Discounted green car loan

Fixed New, used 5 years More details

Fixed car loan (with discount on low-emission vehicles)

Variable 99 years old More details

*Comparative rates based on a loan of $30,000 for a term of five years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of September 9, 2022. See disclaimer.

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Georgia Indian

Georgia joined in 2022 as a financial reporter. Passionate about real estate, investing and budgeting, she is committed to helping Australians of all ages make informed economic choices in all aspects of life.


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