Green Car Loans Background

Compare Green Car Loans

Compare secured personal loans from lenders on Canstar’s database that could be used for an eligible ‘green product’ purchase, such as a car. Conditions may apply.

Group Manager, Research & Ratings
Former Senior Finance Journalist
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Instantly compare 210+ Canstar expert rated products based on the inputs below


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  • Monthly repayment - highest first
MOVE Bank | Green Car Loan
MOVE Bank logo
Features and fees Glossary
  • icon Additional repayments
  • icon Redraw facility
  • icon Top-up facility
  • icon Application fee: $195
  • icon Annualised fee: $0
  • icon Loan terms available: 1 year to 7 years
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
6.49% Glossary
Fixed Glossary
7.82% Glossary
$391.23 Glossary
Bendigo Bank | Green Secured Personal Loan
Bendigo Bank logo
Features and fees Glossary
  • icon Additional repayments
  • icon Redraw facility
  • icon Top-up facility
  • icon Application fee: $150
  • icon Annualised fee: $60
  • icon Loan terms available: 1 year to 7 years
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
5.49% Glossary
Fixed Glossary
8.31% Glossary
$381.93 Glossary
NOW Finance | Secured Personal Loan - Excellent Credit
Now Finance Group Pty Ltd logo
Features and fees Glossary
  • icon Additional repayments
  • icon Redraw facility
  • icon Top-up facility
  • icon Application fee: $0
  • icon Annualised fee: $0
  • icon Loan terms available: 18 months to 7 years
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
6.75% Glossary
up to 10.15% Glossary
Fixed Glossary
6.75% Glossary
up to 10.15% Glossary
$393.67 Glossary
up to $426.42 Glossary
Features and fees Glossary
  • icon Additional repayments
  • icon Redraw facility
  • icon Top-up facility
  • icon Application fee: $300 up to $1200
  • icon Annualised fee: $0
  • icon Loan terms available: 1 year to 7 years
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
6.57% Glossary
up to 9.29% Glossary
Fixed Glossary
7.59% Glossary
up to 10.33% Glossary
$391.98 Glossary
up to $417.99 Glossary
OurMoneyMarket | Secured Personal Loan - A
OurMoneyMarket logo
Features and fees Glossary
  • icon Additional repayments
  • icon Redraw facility
  • icon Top-up facility
  • icon Application fee: $300 up to $1200
  • icon Annualised fee: $0
  • icon Loan terms available: 1 year to 7 years
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
6.69% Glossary
up to 9.99% Glossary
Fixed Glossary
7.71% Glossary
up to 11.03% Glossary
$393.11 Glossary
up to $424.84 Glossary
OurMoneyMarket | Secured Personal Loan - B
OurMoneyMarket logo
Features and fees Glossary
  • icon Additional repayments
  • icon Redraw facility
  • icon Top-up facility
  • icon Application fee: $300 up to $1200
  • icon Annualised fee: $0
  • icon Loan terms available: 1 year to 7 years
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
7.99% Glossary
up to 11.99% Glossary
Fixed Glossary
9.02% Glossary
up to 13.04% Glossary
$405.43 Glossary
up to $444.79 Glossary
Bankwest | Car Loan Secured
Bankwest logo
Features and fees Glossary
  • icon Additional repayments
  • icon Redraw facility
  • icon Top-up facility
  • icon Application fee: $0
  • icon Annualised fee: $60
  • icon Loan terms available: 3 years to 7 years
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
8.99% Glossary
Fixed Glossary
10.06% Glossary
$415.07 Glossary
NOW Finance | Secured Personal Loan - Very Good Credit
Now Finance Group Pty Ltd logo
Features and fees Glossary
  • icon Additional repayments
  • icon Redraw facility
  • icon Top-up facility
  • icon Application fee: $0
  • icon Annualised fee: $0
  • icon Loan terms available: 18 months to 7 years
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
10.15% Glossary
up to 14.25% Glossary
Fixed Glossary
10.15% Glossary
up to 14.25% Glossary
$426.42 Glossary
up to $467.96 Glossary
OurMoneyMarket | Secured Personal Loan - C
OurMoneyMarket logo
Features and fees Glossary
  • icon Additional repayments
  • icon Redraw facility
  • icon Top-up facility
  • icon Application fee: $300 up to $1200
  • icon Annualised fee: $0
  • icon Loan terms available: 1 year to 7 years
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
9.59% Glossary
up to 13.99% Glossary
Fixed Glossary
10.63% Glossary
up to 15.06% Glossary
$420.92 Glossary
up to $465.26 Glossary
NOW Finance | Secured Personal Loan - Good Credit
Now Finance Group Pty Ltd logo
Features and fees Glossary
  • icon Additional repayments
  • icon Redraw facility
  • icon Top-up facility
  • icon Application fee: $0
  • icon Annualised fee: $0
  • icon Loan terms available: 18 months to 7 years
star-rating-icon star-rating-icon star-rating-icon star-rating-icon star-rating-icon
14.25% Glossary
up to 16.45% Glossary
Fixed Glossary
14.25% Glossary
up to 16.45% Glossary
$467.96 Glossary
up to $491.16 Glossary

Showing 10 of 13 results

check Included
cross Not included
na Not applicable
canstar-rating-icon Canstar rating
indicative-canstar-rating-icon Indicative Canstar rating

Unsure of a term in the above table? View glossary

The initial results in the table above are sorted by Star Rating (High-Low) , then Comparison rate^ (Low-High) , then Provider Name (Alphabetical) . Additional filters may have been applied, see top of table for details.

What is a green car loan?

A green car loan is one offered by a lender to finance the purchase of a more eco-friendly car. They usually come with incentives such as a lower interest rate than for a regular car loan, and they may include reduced or even no fees.

Not every car loan provider offers a green car loan option so your choice may be more limited.

But more lenders have started offering loans for eco-friendly purchases in response to rising consumer demand in this area. For example, there’s a steady growth in sales of low-emission cars such as electric cars, according to the Federal Chamber of Automotive Industries (FCAI).

“There is a clear market trend towards zero emission technology,” FCAI Chief Executive Tony Weber said.

While such cars may appeal because of their green credentials, they can cost more than regular combustion engine models. For some buyers a green car loan is a relatively cost-effective way to meet the extra cost of an eco-friendly car.

Frequently Asked Questions about Green Car Loans

Green car loans work pretty much the same as any regular car loan. You borrow a set amount that you repay with interest, plus any fees the lender charges, in regular repayments over an agreed period of time. The loan is secured by the vehicle it’s used to purchase.

The main difference with green car loans is that they can only be used to finance the purchase of eligible eco-friendly vehicles.

Not every provider that offers a green car loan option publishes the details and car eligibility criteria so you may have to contact them directly if you want to compare what’s on offer.

Read carefully any terms and conditions, and check the interest rate and fees that may apply against what’s available elsewhere. Be sure to consider the loan’s Target Market Determination (TMD) as this may help you understand if the product is suitable for your needs.

What actually counts as an eligible eco-friendly car can vary among lenders, so if you ‘re interested in a green car loan you’d be wise to shop around to see what suits your needs.

As a general rule, the federal government’s Green Vehicle Guide says an environmentally friendly car includes:

  • An electric vehicle powered by a battery that can be plugged into an external source to charge
  • A hybrid vehicle powered by a combination of combustion engine and battery, where the battery is charged either by the operation of the car itself, or can be plugged into an external source (as above)
  • A fuel efficient vehicle designed to use less fuel.

Not all eco-friendly types of car are eligible for a green car loan offered by some lenders, and the age of the vehicle may also be a factor.

For example, The RACQ says its green car loan is available for most electric cars that are up to 12 months old but it doesn’t cover hybrid electric vehicles that don’t plug in.

People’s Choice does include non-plug-in hybrid electric cars among those eligible for its green car loans. The lender will also consider a green car loan for vehicles up to seven years old.

Bank First says it will consider a green car loan for any car with a C02 value of 180 g/km or less, which usually includes new cars and hybrid cars, and with a build date of the current year or previous calendar year.

If you can secure a green car loan at a lower interest rate than a regular car loan, you should save money in that you’ll be paying less interest over the length of the loan.

You may have paid more for your eco-friendly car than a typical combustion engine equivalent model, but you may now be saving on fuel and other running costs.

That saving means you may then be able to make extra loan repayments that could help reduce the interest over time. But check to see if there is any termination fee or other charge involved if you want to repay the loan in full early.

Ultimately, whether a green car loan saves you money will depend on the product you choose. Not all green car loans will automatically charge less interest than regular car loans, so it’s important to shop around.

If you’re considering using a green car loan to buy your eco-friendly car you need to consider the pros and cons.

Pros of a green car loan

  • You may get a reduced interest on your green car loan compared to an equivalent regular car loan
  • You may have reduced or no fees in setting up the green car loan
  • You get to own an eco-friendly car that may save you in fuel and running costs
  • You’re doing your bit to reduce your impact on the environment.

Cons of a green car loan

  • Eco-friendly cars may be more expensive to buy than a regular car, so even with reduced loan costs, it can be an expensive choice
  • You may have relatively limited range of green loan providers to choose from
  • You may have limited choice in what eco-friendly cars are eligible for a green car loan.

Latest in car loans

Canstar Personal Loans Star Ratings and Awards

Looking for an award-winning personal loan or to switch lenders? Canstar rates products based on price and features in our Personal Loans Star Ratings and Awards. Our expert Research team shares insights about which products offer 5-Star value and which providers offer outstanding value overall.

Canstar rates a range of financial products, covering banking, insurance and investment. We also reveal which providers have the most satisfied customers in our dedicated Customer Satisfaction Awards.

Personal and Car Loans Awards

About our finance experts

Michael Lund, Former Senior Finance Journalist

Michael Lund
Michael is an award-winning journalist with more than three decades of experience reporting on a range of subjects, including general news, lifestyle, local government, science and technology. As a senior finance journalist at Canstar, Michael has written more than 100 articles covering superannuation, savings, wealth, life insurance, home loans and more. His work has been referenced by a number of other finance publications, including Yahoo Finance and The Motley Fool. Michael started in the UK working for a number of local and evening newspapers, including as a local government reporter. He then moved to the BBC and worked in radio before taking up the position of bi-media local government correspondent for the West of England, based in Bristol. In 1998 Michael moved to Australia and worked for Queensland’s The Sunday Mail before joining the ABC in Brisbane. There, he worked as a reporter and producer in a number of areas in radio and television, including for ABC TV’s popular Australian Story. After a stint as a tutor and lecturer in journalism at Queensland University of Technology, Michael returned to News Corp as a feature writer for The Courier-Mail. An interest in online journalism saw Michael join The Conversation first as a science and technology editor and later as a commissioning editor, working across all areas of coverage including with The Conversation’s New Zealand team. Michael has been lucky enough to win a few awards for his work, including a Queensland Media Award and a highly commended in the Walkleys. In 2021 he was part of a team that was a finalist in the Australian Museum Eureka Prize for Science Journalism. He holds a Bachelor of Science in mathematics and applied physics (Manchester Metropolitan University) and a Masters of Science in pure mathematics (Liverpool University). You can connect with Michael on LinkedIn. View Michael’s articles.

Joshua Sale, Group Manager, Research & Ratings

Joshua Sale

As Canstar’s Ratings Manager, Josh Sale is responsible for the methodology and delivery of Canstar’s Personal & Car Loans Star Ratings and Awards. With tertiary qualifications in economics and finance, Josh has worked behind the scenes for the last five years to develop Star Ratings and Awards that help connect consumers with the right product for them.

Josh is passionate about helping consumers get hands-on with their finances. Josh has been interviewed by media outlets such as the Australian Financial Reviewnews.com.au and Money Magazine.

You can follow Josh on LinkedIn, and Canstar on Twitter and Facebook.

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Important information

For those that love the detail

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.

Canstar may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it’s an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product's rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar. Payment of fees for ads does not influence our Star Ratings. See How We Get Paid to find out more.

The Car and/or Personal Loan Star Ratings identified in the tables are updated monthly. The results don’t include every provider in the market and we may not compare all features relevant to you. Current rates and fees are displayed and may be different to what was rated. You can find a description of the initial sort order below the table. You can use the sort buttons at the top of each column to re-order the display. Learn more about our Car Loans Star Rating Methodology. The rating shown is only one factor to take into account when considering products.

The products and Star Ratings in the table might not match your exact inputs in the selector. Sometimes the methodology uses profiles with categories or bands (e.g. income, loan amount or monthly spend), but sometimes a single methodology, without any categories or bands, is applied. The results will show the products that most closely match your selection, based on our profiles. If you are unsure about any terms used in the comparison table please refer to the glossary.

What is a Target Market Determination?

A Target Market Determination (‘TMD’) is a document that explains which people particular financial products may be suitable for (the target market) and sets out any conditions around how financial products can be distributed to consumers.

Why do product issuers provide Target Market Determinations?

From 5 October 2021, TMDs are compulsory for most financial products.

Issuers and distributors of financial products must take reasonable steps that are likely to result in financial products reaching consumers in the target market defined by the product issuer.

We recommend that you consider the TMD before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. Canstar provides information about credit products. We’re not suggesting or recommending a particular credit product for you. If you decide to apply for a loan, you will deal directly with the provider, not with Canstar. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. It’s important you check rates and product information directly with the provider. For more information, read our Detailed Disclosure. ^Read the Comparison Rate Warning.

Canstar may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it’s an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product's rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar. Payment of fees for ads does not influence our Star Ratings. See How We Get Paid to find out more.