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CEFC backs leasing model to boost Australia’s EV uptake

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The Clean Energy Finance Corporation has backed a $100 million finance program that aims to accelerate the uptake of electric vehicles in Australia.

electric-vehicle-charging-space

The program, run by Macquarie Leasing, offers a 0.7 per cent discount on finance for electric vehicles, as well as for plug-in hybrid EVs and a range of eligible energy efficient and renewable energy equipment, including rooftop solar and battery storage.

People who choose eligible lower emissions passenger vehicles can also benefit from the program, with a 0.5 per cent finance discount.

Investment in equipment to upgrade the energy efficiency of buildings, such as energy efficient lighting, building management systems and better air conditioning, can also access the discounted finance.

The CEFC is particularly keen to push the EV angle, however, in light of Australia’s notoriously slow uptake of fully electric cars – which has been exacerbated by the drought of mid-priced EV options that is currently plaguing the country.

The focus on EV’s is also due to the fact that road transport is one of Australia’s fastest growing sources of greenhouse gas emissions.

It also goes a small way to addressing the issue of cost of electric cars, which for many individual drivers in Australia puts the technology out of their reach. This is particularly the case in Australia, where the only fully electric cars on the market are at the prestige price level.

Just this week, Nissan unveiled its next-generation fully electric LEAF, which will compete in the mass market, alongside Tesla’s Model 3 EV, at a price of around $US30,000. Neither model, however, is expected to become available in Australia until 2018 at the earliest – and more likely 2019.

“By making this discounted CEFC finance available through major financiers such as Macquarie Leasing, we are making it easier for Australians to prioritise clean energy options when they make major investment decisions,” said CEFC CEO Ian Learmonth in comments on Wednesday.

“By supporting the more widespread adoption of exciting clean energy solutions, such as electric vehicles, we can accelerate the decarbonisation of our economy.”

The CEFC said Macquarie Leasing would initially make the discounted finance available to customers through its existing relationships with car manufacturers.

Customers will receive a discount to Macquarie Leasing’s standard interest rate when they enter into arrangements to hire or lease or finance the purchase of vehicles that satisfy the criteria for qualifying contracts.  

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  • DugS

    Hmmm, a whole 0.7% eh, that’s got to be attractive. So a quick look at some reviews of Mac Bank, https://www.productreview.com.au/p/macquarie-bank.html
    and lo, the old saying about too good to be true is verified. They don’t call it the millionaire factory because it offers good cheap finance.
    This is the kind of cynical opportunism that will slow down the mainstream adoption of EV’s and give the COALition the opportunity to say govt incentives are not necessary coz market is stepping up to the plate. Sure, but stepping up to the plate with a poisonous product dusted with sugar, gee thanks.

  • Kevin Brown

    Age pensioners would get a far better ROI by purchasing LED lighting, energy efficient appliances, roof-top solar, batteries and an EV because it reduces their assets which increases their age pension.

    They could further manage their expenses by joining SonnenFlat0 plan and may be able to generate income with the soon to be implemented GreenSync DeX scheme that is being rolled out in Queensland.

  • Jack B

    ok I’m going to try not to swear here, this story is not a good story for consumers of Finance fact is McQuarrie bank is higher than many others at their lending rates so .07% off for some kind of lease arrangement if the tax department lets you have a lease or .05% off on a green loan are not good rates coming from them.
    And if we were to have even some electric car choice for every day people we are still paying huge amount of money over the odds as to what other people pay in other places in the world, a BMW i3 in the United Kingdom from a car dealer is more than $20,000 cheaper there than it is here in Australia, don’t take my word for it, look it up! oh and by the way then in the United Kingdom they get the usual help in rebates and power company deals to help the environment……………… God forbid Australia should do anything to help the environment……….. we are stupid people with stupid government..
    Not sure I am allowed to say the name of my banking organisation but I got a green loan two years ago for my solar power system at 5.5% finance.

    Frustrated at the lack of choice at a reasonable price and any meaningful infrastructure for electric cars.