The EV market in Australia starts at about $28,000 and can go up over $100,000 says Electric Cars Guide.
The financial institution has announced that from 2025 they will not issue car loans for fuel and diesel vehicles in efforts to move towards a decarbonized economy.
Bank Australia has launched the initiative saying that it’s inline with the country’s goal of achieving net zero by 2035 and it’s the most ambitious environmental target of any Australian bank.
“We’ve chosen 2025 because the change to electric vehicles needs to happen quickly. 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.”
EVs currently make up 2.5 per cent of new cars in Australia but this is set to increase by 2025.
In 2004 they launched a carbon offset car loan, later adding low interest rates for low-emission vehicles in 2018 but say they’ve been carbon neutral since 2011 and run on 100 per cent renewable electricity.
The EV market in Australia starts at about $28,000 and can go up over $100,000 says Electric Cars Guide.
It’s estimated that the average Australian spends $40,000 on a new car according to Canstar Blue but can be much more affordable if purchased second hand.
Bank Australia says that it will continue to support people who need car loans and that loans will only be refused for hybrid cars or those with a combustion engine.
“We will be reviewing our car loan products for second-hand combustion engine and hybrid cars once there is a widespread availability of affordable and second-hand EVs in Australia.”
Although it will bring about many environmental benefits, they admit that it’s not going to be easy but are confident it can be done.
“There are some sectors where it’s going to be difficult to decarbonise, but passenger transport is not one of them. The technology needed is ready now, we just need to make use of it, and make fossil fuel powered cars a thing of the past.”
