Financing an Electric Vehicle Loans Leases and Government Incentives

EV incentives in Australia 2024 (state-by-state guide)

ACT stamp duty exemption

New and used zero-emission vehicles (including motorcycles) are exempt from motor vehicle duty, as are new plug-in hybrid vehicles (PHEVs) and hybrid vehicles (HEVs) purchased or acquired from 1 August 2022.

Used HEVs and PHEVs are exempt if they are purchased or acquired from 1 July 2023.

By contrast, the cost for a vehicle with "average environmental performance" would be $3 for each $100, or part of $100, of the dutiable value of the vehicle for vehicles valued below $45,000. For vehicles valued above $45,000, the cost would be $1,350, plus $5.11 for every $100, or part of $100, of the dutiable value in excess of $45,000.

Free registration for EVs

Owners of new or used zero-emissions vehicles (ZEVs) in the ACT purchased or acquired between 24 May 2021 and 30 June 2024 are eligible for two years of free registration.

From 1 July 2024, the ACTs vehicle registration fees will begin transitioning to an emissions-based system for most light vehicles. The ACT Government says this will mean lower registration fees for lower-emissions vehicles compared to other vehicle types.

Discounted registration for hybrid vehicles

Owners of plug-in hybrid electric vehicles (PHEVs) and hybrid electric vehicles (HEVs) with emissions of no more than 130g/km get a 20% discount on registration fees for up to 12 months for a vehicle first registered before 30 June 2024.

Interest-free loans

Eligible ACT residents can apply for zero-interest loans of between $2,000 and $15,000 to help with the costs of energy-efficient upgrades, including electric vehicles and household battery storage systems.

• Learn more about the various incentives available via the ACT Government

Do You Need an Electric Car Loan to Buy Your EV?

You arent required to use a specific type of auto loan when buying an electric vehicle. While lenders have restrictions on where you can shop some lenders wont finance that bargain you found on Craigslist, for example those selling the cars are less picky. They typically just want the check to cash.

That said, auto loans branded with terms like electric vehicle financing or green loans might have features specific to electric vehicles, or EVs, that arent found in traditional auto loans, like including in the loan amount the cost of installing Level 2 charging in your home. That convenience can make these loans worth considering if youre buying an EV, though you shouldnt restrict your search to these types of loans exclusively.

What makes EV loans different

As far as money changing hands is concerned, there isn't a technical difference between an EV loan and a traditional auto loan. In both cases, a credit union, bank or other lender supplies you with funds to purchase a vehicle, and you pay it back with an interest rate thats determined by factors such as your credit score.

Nerdy Tip

Interest rate and annual percentage yield, or APR, are not interchangeable terms. APR includes the cost of fees, making it the more useful figure of the two when comparing one loan option to the next.

What makes EV loans different is that they could contain a variety of services and features unique to EV ownership, including:

• Loan amounts that include the cost to install a Level 2 charger at your home.

• Higher loan limits compared to limits on gas-powered cars.

• Access to experienced EV owners who can answer questions for first-time EV owners.

• Expertise in dealing with direct-to-consumer vehicle manufacturers, like Tesla or Rivian.

• Deferred, or balloon, payments. These allow a buyer to commit to paying a chunk of the principal, plus interest, until a later time, often at the end of the loan. This lowers your monthly payment, though committing to paying a four- or five-figure amount at a future date is risky.

Rate discounts

Its common to see a lender that offers both EV and traditional loans reserve its lowest rates for EVs. Remember that the rate offered to any one applicant may not equal the lowest advertised rate.

Also, the EV discount offered by a loan provider is a comparison only to other loans offered by that company not to loans offered by any other company. So, for example, you may see EV loans advertised as being 0.25% or 0.5% lower than that companys standard loans. Thats great, but its certainly possible youll get a rate elsewhere thats even lower, even if its not labeled an EV loan.

Where to find EV loans

Traditional lenders

Youre more likely to find EV-specific loans with a credit union than at a traditional bank. Credit unions largely serve specific geographic areas or groups of people with a shared affiliation, and you must be a member to apply for a loan. So, a rate you find online is only an option if youre eligible to join.

Auto lending companies

You dont need a bank to get an auto loan. Nonbank lenders offer consumers another financing option. In fact, some of these types of lenders even focus exclusively on EV lending. This expertise can be helpful as you navigate the buying process, though EV expertise doesnt always translate into the lowest rates.

From the manufacturer

Car manufacturers often offer financing for new vehicles, a practice called captive lending. These manufacturers sometimes offer perks for new EVs that they dont offer with other vehicles. For example, at the end of your financing term, Ford lets you return your EV for credit if you choose a repayment plan that has a final balloon payment.

Remember to shop around

The best way to find the lowest rate is to work with more than one lender. Here are some tips to navigate that process:

• Get preapprovals from two or three different lenders. This will ensure you're getting a competitive interest rate versus settling for the first rate you're approved for. It also will put you in a stronger negotiating position if you purchase an EV from a dealership. To limit the impact on your credit score, submit all applications within a two-week period.

• If you have bad credit, look into lenders that specialize in working with people who have lower credit scores. Credit unions are often a good place to start. Although EVs are becoming more affordable, it might be better for someone with bad credit to get a gas vehicle because gas vehicles usually come with lower price tags, which means lower loan payments.

CHEAPR

Electric Vehicle and Charging Equipment Incentives

Federal, state and community incentives make electric vehicles and charging stations more affordable than ever. Check this site often for new incentive programs offered by DEEP and others. If you would like an email notification when new incentives become available, please

sign up for our mailing list

.Here are some current incentives that can save you money now:

The Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) offers incentives of up to $7,500 for Connecticut residents who purchase or lease an eligible battery electric, plug-in hybrid electric or fuel cell electric vehicle (EV). CHEAPR also offers supplemental rebates to Connecticut residents who participate in certain income qualified programs.

Discover how easy it is to to save when you purchase an EV with the CHEAPR Standard Rebate, Rebate+ New and Rebate+ Used incentives!

SAVE MONEY...HELP CT MEET CLIMATE AND ENERGY GOALS!

As a result of the Volkswagen settlement, Connecticut is eligible to administer over $55 million to mitigate excess diesel emissions caused by VW's actions. Grant programs cover a range of heavy duty mobile source projects. In addition, funds will be used to bolster Connecticut's light duty electric vehicle infrastructure.

Visit Connecticut's VW Settlement webpage to learn out more and sign up to be notified of future grant programs.

Connecticut has established a new nine-year program to support the installation of electric vehicle charging infrastructure across the state, focusing on equity and inclusion. The Connecticut Electric Vehicle (EV) Charging Program provides a combination of incentives for infrastructure, including electric vehicle supply equipment (EVSE) and fast charging stations, and accompanying rate design offerings in an effort to develop a self-sustaining zero emission vehicle market.

Beginning January 1, 2022 Eversource and The United Illuminating Company (UI) will administer the program. Learn more about the EV Charging Program EVSE and make-ready incentives!

Eversource + United Illuminating

Launched on January 1, 2022, the Connecticut EV Charging Program is administered by Eversource Energy (Eversource) and The United Illuminating Company (UI). The Connecticut EV Charging Program is a new nine year program that is designed to meet consumer demand for charging infrastructure by providing incentives for electric vehicle supply equipment (EVSE) as well as rate design offerings.

For more information on available EV charging incentives, visit Eversource and UI's EV Charging Program webpages:Eversource: Residential | Commercial + United Illuminating: Residential | Commercial

Federal Tax Credits

Electric VehiclesEVs purchased on or after 2010 may be eligible for a federal income tax credit of up to $7,500. Find out more on fueleconomy.gov

EV Charging StationsCongress retroactively extended the alternative vehicle refueling equipment tax credit through December 31, 2020. Consumers could be eligible for up to a 30% federal tax credit for the cost of the EVSE and installation. For more information about the tax credit please see the US Dept. of Energy website.

Energize Connecticut is an initiative dedicated to empowering Connecticut citizens to make smart energy choices, now and in the future. They provide Connecticut consumers, businesses and communities the resources and information they need to make it easy to save energy and build a clean energy future for everyone in the state. The initiative is funded by a charge on customer energy bills.

Norwich Public Utilities (NPU) electric customers are eligible for up to a $1,500 rebate for the purchase or lease of a new or used all-electric (EV) or plug-in hybrid electric vehicle (PHEV), and up to a $4,000 rebate for the purchase and installation of EV charging equipment. NPU rebates are in addition to available federal, state, and manufacturers' rebates and incentives.

NPU Customers must be current on their utility account and the eligible vehicle must be purchased from a licensed car dealership; proof of purchase is required. For more information about NPU's EV and charging equipment rebates please see norwichpublicutilities.com.

Content last updated February 16, 2022

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