Quick answer
An electric car is financed much like any other car, usually with a secured car loan or a personal loan. What changes is the budget: you swap fuel for home and public charging, insurance and tyres can differ, and duty can be lower in some states. Work out those costs first, check battery health on a used EV, and compare quotes on total cost.
Key points
- EVs are financed with the same loan types as petrol and diesel cars.
- Charging costs depend on where you charge; budget for public charging if home charging isn't practical.
- Victoria charges a lower motor vehicle duty rate for low-emission passenger cars.
- On a used EV, battery condition and warranty matter as much as kilometres.
Electric cars have gone from curiosity to everyday choice in Australian driveways. If you’re weighing one up, the finance is the easy bit. The part worth slowing down for is the budget, because an EV moves money around: less at the bowser, more attention on electricity, insurance and the battery.
How do you finance an electric car?
Exactly as you would any car. The usual options are:
- A secured car loan, with the EV as security. Usually the lower-cost route.
- An unsecured personal loan, which leaves the car free of the lender’s interest and may suit an older or imported EV a secured lender won’t take.
Some lenders brand loans as “green” or “EV” loans. They can be worth a look, but compare them on the same basis as any other: the total amount payable for the same amount and term, plus fees. A label doesn’t make a loan cheaper.
How does an EV change your running-cost budget?
This is the heart of it. Swap the fuel line in your budget for charging, then review the rest.
| Cost | What to consider for an EV |
|---|---|
| Charging at home | Your electricity plan, time-of-use pricing and any solar you have |
| Public charging | Moneysmart suggests budgeting for public charging if home charging isn’t practical |
| Home charger | Hardware and installation by a licensed electrician, if you want faster charging than a standard power point |
| Insurance | Get a quote on the exact model; repair costs and parts can differ from petrol cars |
| Tyres | EVs are often heavier, and tyre wear depends on the car and how you drive |
| Servicing | Usually fewer fluids and parts, but check the manufacturer’s schedule |
| Registration and duty | Varies by state; Victoria applies a lower motor vehicle duty rate for low-emission passenger vehicles |
Put your real figures into the car budget planner, using your expected weekly charging cost in place of fuel. If you rent or live in an apartment without a charger, be realistic about relying on public charging.
Should a home charger go on the loan?
You can sometimes include extras in a car loan, but every dollar added accrues interest for the full term. A home charger is a fixed improvement to your home, not part of the car’s value as security. If you can pay for it upfront, your loan stays smaller and your repayment lower. If you need to borrow for it, look at the total cost separately.
When the numbers add up, you can see your EV loan options before committing to anything.
What should you check on a used electric car?
The battery is the big-ticket item, so it deserves the attention a mechanic would give an engine:
- Battery health. Ask the seller or dealer for a battery health report if one is available.
- Battery warranty. Many manufacturers warrant the battery separately from the car. Check how much time or distance remains, and whether it transfers to you.
- Charging gear. Make sure the charging cable and any adaptors come with the car.
- Software and connected services. Ask whether any app or connected features need a subscription.
- The usual checks. A $2 PPSR search for finance owing or write-off history, service records and a test drive. See used car loans for the full list.
New or used EV: which makes more sense?
A new EV brings a full warranty and the latest range and charging speeds, which matters if you drive long distances. A used EV can be much cheaper, but battery condition varies and older models may have less range. If you’re buying new, our new car loans page covers comparing dealer offers. If you’re after an electric ute or a large SUV for towing, read ute and 4WD loans too, because towing reduces range.
Will an EV affect how a lender assesses you?
Not directly. Lenders look at your income, expenses, credit history and the vehicle’s value as security, as they would for any car. The difference shows up in your expenses: if charging at home costs less than your old fuel bill, your budget has more room, and the reverse if you’ll rely on public charging. That’s why accurate figures matter.
How long should an EV loan be?
The same principle applies as for any car: choose the shortest term whose repayment fits comfortably in your budget. Longer terms lower the repayment but raise the total cost, and for an EV there’s an extra consideration. Battery technology and charging speeds are improving quickly, so you may want the option to upgrade sooner than you would with a petrol car. A loan that ends while the car still has solid value gives you that flexibility.
Be careful with balloon payments on an EV. They lower the regular repayment, but you’ll owe a lump sum at the end, and nobody can promise what a particular EV will be worth by then. If you do choose a balloon, plan how you’ll pay it from day one.
Ready to plug in?
Once you’ve worked out what the EV will cost to own, not just to buy, you’re ready to look at finance. Start an application with our secure partner and see your options before you commit. A real person can help if you’re unsure how a trade-in, a charger or a battery warranty fits in. Please enter your income and expenses accurately, so the repayments you see are ones your new budget can actually carry.
Frequently asked questions
Are there special car loans for electric cars?
Some lenders market green or EV loans, but structurally they're car loans like any other. Compare them on total amount payable and fees, the same way you would any car loan.
Is an EV cheaper to run than a petrol car?
It depends on where you charge, your electricity plan, insurance and the car. Put your own figures into a budget rather than relying on general claims.
Do I pay less stamp duty on an EV?
It depends on the state. In Victoria, low-emission passenger vehicles are charged motor vehicle duty at a lower rate. Check your own state's transport or revenue office.
What should I check when buying a used EV?
Ask for evidence of battery health, check how much of the battery warranty remains, confirm the charging cable and adaptors are included, and run a PPSR search like any used car.
Should I include a home charger in my car loan?
Including it adds interest for the whole term. If you can, pay for the charger and installation from savings and keep the loan to the car.