Westpac to offer cheaper loans for EVs in Australia, but not NZ

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 Australia, in an effort to increase the uptake of electrified vehicles. But, it will not be rolling out the same programme in New Zealand.

Speaking to EVs & Beyond, a local Westpac spokesperson underlined that it will not be adopting a similar scheme because it doesn’t have a designated autofinance division in New Zealand, unlike in Australia.

“Westpac Group has an autofinance division in Australia. We have no comparable division in New Zealand,” said the spokesperson.

“But we are constantly looking at ways we can support our customers’ sustainability aspirations through existing products and services like sustainable finance for businesses, or our Westpac Warm Up interest-free energy efficient loan product for homeowners, as well as future offerings.”

Westpac’s new product aimed at Australians wanting to buy an electrified vehicle is called the Hybrid and Electric Car Loan. It 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 AU$10,000 and AU$100,000. The product allows users to borrow an additional 10% in order to cover on-road costs. 

“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,” says 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 Australia has 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.

“We expect demand for these vehicles will continue to rise, with many Australians already planning to make the change,” de Bruin adds.

“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.”