some of the best auto loans for electric vehicles

The highly anticipated Tesla Model Y SUV has finally been priced for Australia with the first fleet of vehicles due to arrive on our shores in August. So what are your best car loan options when financing the Tesla Model Y?

According to Drive.com.au, Tesla will launch the Model Y SUV with two variants in August:

  • Y-model – rear-wheel-drive model $68,900plus travel expenses, and
  • Model Y performance – all-wheel drive model at $98,599 (Luxury car tax included).

Deliveries for the Model Y are expected to take place between August and November 2022, and the expected delivery date for the Model Y Performance has been listed as “late 2022”.

How does the price of the Tesla Model Y compare to other electric vehicles?

Vehicle Price scale
Tesla Model Y From $68,900
Tesla Model Y performance From $98,599
Tesla Model 3 $63,900 – $91,672
Polestar 2 $63,900 – $73,400
Kia EV6 $67,990 – $82,990

Source: CarExpert.com.au

It’s worth noting that the Model Y’s starting price is about $5,000 more than the currently available Tesla Model 3, $5,000 more than the Polestar 2 and $1,000 more than the Kia EV6.

Unfortunately, with a starting price range starting at $68,900, the Tesla Model Y doesn’t qualify buyers for the EV rebate in NSW, but it should still be eligible for the stamp duty exemption for new and used electric vehicles (capped at $78,000)

Tesla has a detailed list of support and incentives for drivers to buy in each state or territory. For information on rebates or other financial assistance from your state or territory, please read here.

How much would a car loan reimbursement for a Tesla Model Y be?

It’s no secret that an electric vehicle (EV) is generally priced high in Australia compared to price brackets in countries like the US. This makes the cost of an electric vehicle one of the main barriers to entry for upgrading electric vehicles in Australia.

Luckily, auto lenders know this and aim to inspire borrowers to make more sustainable decisions in future car purchases. This is done through their Green Auto Loans, which generally offer lower than average interest rates for eligible customers to support environmentally friendly purchases.

In fact, last month one of Australia’s biggest banks, Westpac, revealed a new, lower car loan interest rate for buying hybrid or electric vehicles. Reducing its existing car loan rate means eligible customers can be offered rates of 4.99% (6.21% comparison rate) to borrow between $10,000 and $100,000.

So if you were eligible for a 5-year fixed auto loan rate starting at 4.99%, how much could your repayments be for the new Tesla Model Y and Model Y Performance?

Refunds on Tesla Model Y: Hypothetical 5-year fixed rate at 4.99%

Vehicle Monthly repayments Total refunds
Y-model $1,300 $77,995
Model Y performance $1,860 $111,614

Source: RateCity Auto Loan Calculator. Does not include fees.

Buying an electric vehicle – especially a brand like Tesla – will usually come with a higher upfront price than if you were just buying a used vehicle to get from A to B. And while you may finding yourself saving money over time by ditching gas for good, you still need to cover the initial cost of the vehicle, plus any infrastructure like a charger.

That’s why it’s crucial that drivers prioritize a competitive car loan that best suits their budget and goals and keeps costs down. It’s important to take your time researching the right car loan for your needs, including comparing factors like interest rate, fees, features like ease of withdrawal, and whether repayments are fixed or variable. .

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