Blog A car loan that's great for you and the environment

A car loan that's great for you and the environment

28 April 2020
A car loan that's great for you and the environment

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A car loan that is as cheap as some home loans - that’s right. There is now a car loan with an advertised interest rate starting with a 3. You just need a ‘green car’ to qualify. View some of the most popular qualifying green cars below.

In March, we’ve cut our Green Car Loan by 22 basis points, down to an advertised rate of 3.97% per annum (4.51% p.a. comparison rate*).

This represents one of the lowest rates for green car loans in the market. Managing Director Marie Mortimer said the low rate was in response to the Reserve Bank’s decision to lower its cash rate twice in one month.

“We think that these competitive interest rates, combined with the amazing prices that dealers are offering at the moment, means this is a great time to buy a vehicle,” Ms Mortimer said.

“If a buyer is looking to trade in their car and even upgrade to a new one, they could find themselves in an excellent position to negotiate a better deal, given the current slump in new car sales.”

Ms Mortimer said with this new rate, car loans are closing the gap on some home loan interest rates in the market.

“An interest rate of less than 4.00% is something that many of the Big 4 are still charging for a home loan so to offer a car loan at that price is remarkable,” she said.

Our Green Car Loan offers a 70 basis point discount off our regular new car loan, and there are a surprising number of cars approved as a green car. So what is a green car, what cars qualify and what are the benefits of driving around a green car?

What cars qualify for a green car loan?

You might be surprised to know which cars qualify under our green car specification. While there is no explicit formula, such as grams of carbon dioxide per kilometre, there is a pre-approved list. All hybrid and electric vehicles automatically qualify, and many other petrol and diesel models could also qualify, including popular makes and models like:


Model and engine sizes

(Not all models have been listed. Speak to our car loan specialists to find out if your car is in our approved green car list)


  • A1 Sportback, A3, A4, A5, A6, Q2 and Q7, with a maximum engine size of 2.0L, or 3.0L for the Q7.


  • Various 1, 2, 3, 4, Series with a max engine size of either 1.5L or 2.0L

  • 5 and 7 Series with a max engine size of 3.0L

  • X1, X2, X3 with a max engine size of 2.0L; X4s under 3.0L


  • Ecosports and Fiesta Sports with a max engine size of 1.0L

  • Focus 1.5L

  • Mondeo 2.0L

  • Ranger 2.2L


  • Ioniq, i30 1.6L

  • i40 1.7L


  • Picanto 1.3L

  • Rio 1.4L


  • 2, CX-3 1.5L diesel

  • CX-8 2.2L diesel


  • A180 and A200 1.3L

  • B180

  • C200, C220, C250; CLA200

  • E220

  • GLA180, GLA200, GLA220

  • X220, X250 2.3L

  • V Class 2.1

  • Vito 2.1


  • Juke 1.2L

  • Qashqai 1.6L

  • NP300 Navara 2.3L.


  • Forester 2.5L

  • Outback 2.5L


  • Amorak 2.0L

  • Golf 1.4L

  • Polo 1.0L

  • Passat 1.8L

  • Caddy TSI220, Caddy Van 1.4L.

Please note that this list is subject to change. Not all models have been listed. Whether the car you are considering qualifies may be dependent on if it’s a petrol or diesel model.

Call us for details of the approved Clean Green Rate vehicle list.

Speak to a car loan specialist

Benefits of a green car

There are three key benefits to purchasing a green car: a more competitive car loan interest rate, doing your bit for the environment, and good fuel economy.

  • Interest rates: Our Green Car Loan offers a 70 basis point discount on the advertised rate over the regular interest rate for a new car. What this could mean in real terms is a $552 monthly repayment instead of a $562 on a $30,000 loan over 5 years - $600 saved - when comparison rates are compared.

  • Environmental benefits: Your car makes the list for good reason - it’s been considered more eco-friendly compared to others in its class. That means fewer carbon emissions, which is kinder to the environment, which means cleaner air for you and your loved ones.

  • Fuel economy: Another potential benefit is that with green cars, especially hybrids and electric vehicles, the fuel savings are substantial. For petrol vehicles, too, they could be more economical than other cars in their class, meaning money saved at the bowser.

These are the three key benefits when it comes to purchasing a more environmentally-friendly car. Getting a competitive car loan with a good interest rate could save you hundreds, if not thousands, over the life of the loan, and a green car loan may be able to take those savings further. Give our team a call today on 13 10 90 to see if your planned new car purchase qualifies for a green car loan or apply now to get started.

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