If you’ve been seriously thinking of joining the ranks of the 180,000 plus Aussies who’ve been seduced by the electric vehicle (EV) zeitgeist, you will be aware of the favourable conditions propelling the trend, including:
Environmentally conscious consumers
Government tax benefits
Wider range of vehicles coming into the market
Wider range of vehicles coming into the market
Wider range of vehicles coming into the market
The other big driver of EV uptake is the auto lending sector, which is undergoing significant change as it responds to the consumer appetite for EV ownership and more sustainable lifestyles.
Emphasis of flexible loan terms and repayments
Financial institutions and EV manufacturers are developing specialised financing products tailored to EV buyers’ needs. These products include lower interest rates, extended loan terms, and EV-specific insurance options to encourage more consumers to switch to electric vehicles, thus stimulating market growth.
Lender loan products are being adjusted due to healthy EV growth rates. Flexibility in loan terms such as repayment plans for borrowers is one of the ways financial institutions are responding.
Metro has introduced increased flexibility on loans for EV purchases. Metro CIO David Bridges says, “At Metro we want to make owning an electric vehicle not only a sustainable choice, but an affordable one. Customers can choose an electric vehicle finance loan term of up to 7 years that suits their financial situation and preferences.
“Whether customers prefer a shorter term to pay off their EV loan quickly or a longer term with lower monthly payments, we have options that cater to their needs.
“We understand the financial considerations involved in adopting renewable technologies and we provide value-driven solutions that align to our customers’ budgets and long-term savings goals,” he adds.
Leasing versus buying
Given the rapid pace of technological advancements in EVs and concerns about battery life, consumers are becoming more curious about leasing over buying. This is leading to a shift in the auto lending market, with a greater emphasis on leasing options.
The big advantage of leasing an electric vehicle is simple: you can regularly upgrade your car every few years, ensuring that you always have a modern ride. That’s a big deal. In a few years, there will be a whole lot more options for electric vehicles in Australia with better ranges, faster charging speeds, and better software experiences.
“In the current EV market, leasing is a prudent option compared with an outright purchase,” David says. “EV technology is evolving rapidly, and updates are coming to market at breakneck speed, so it would be advantageous to have the flexibility to change or upgrade the vehicle a couple of years down the track.
“Metro’s electric vehicle novated leasing simplifies the financial journey, providing convenience and simplicity. Choosing a novated lease for an electric car could open the gateway to a multitude of tax-saving opportunities,” he adds.
Responding to the trend
According to recent McKinsey research, loans to purchase EVs represent a major growth area for the US and the UK, and while Australia is a latecomer to the party due to lack of previous governments’ policies and incentives to support it, this is changing.
“As a non-bank lender, Metro is able to respond to customers’ needs in the area of electric vehicle novated leasing and purchasing; because we are smaller, we can be more nimble, cut down on approval times and admin and provide personalised, tailored packages and service,” David says.
To help you in your next electric vehicle novated lease or purchase, this is a link to the government’s EV guide: https://www.greenvehicleguide.gov.au/ and head to our website for more information on EV leasing and loans Metro Finance | Reliable Vehicle & Equipment Loans. For more on our newly launched Metroeco product: Metro Eco for Electric Vehicles | Green Loans for Electric Cars (metrofin.com.au)
