Electric-car loan uptake surges 37 per cent in six months

One of Australia’s largest banks says electric vehicles purchased on finance has increased by 37 per cent in the last six months.

Data published by the Commonwealth Bank revealed 23 per cent – or approximately one in five – of approved car loans were spent on electric and hybrid models in the past year, while 17 per cent of total lendings were for new and used vehicles of all types.

The bank says the Tesla Model 3 and Model Y are the most popular variants among its customers – accounting for more than 70 per cent of electric vehicles financed through CommBank.

However, Commonwealth Bank partnered with Tesla in September 2021, providing fixed-rate loans for those purchasing an electric vehicle from the US car brand.

“With often lower running costs for [electric vehicles], and lower cost models coming to market, [electric vehicles] are becoming a more attractive proposition for more people,” CommBank Personal Lending Manager Joel Larsen said in a media statement.

According to research by the Australian Automobile Association – the body representing state motoring clubs such as the RACV, RACQ, and NRMA – car loan payments now account for more than 35 per cent of household transport costs, with those in Melbourne and Sydney spending more than $190 on average each week on vehicle finance.