EV Car Loan 5.49% p.a. (6.92% Comparison Rate) for Essential Workers or Gross Income Below $100,000 @ Commbank EV Access Program

480
EV Car Loan 5.49% p.a. (6.92% Comparison Rate) for Essential Workers or Gross Income Below $100,000 @ Commbank EV Access Program
Go to Deal
bemybubble on 19/12/2024 - 12:18 commbank.com.au (473 clicks)
Last edited 19/12/2024 - 12:29 by 2 other users

The government just announced low interest loans for essential works or those with gross income <$100k.

Given the EV deals coming through I have no doubt this will appeal to those who are in the market for one and need to finance it.

CommBank EV Access Program

The CommBank EV Access Program offers a special rate of 5.49% p.a. (comparison rate 6.92% p.a.) on a Secured Personal Loan for eligible electric or hybrid vehicles.

Key Points

  • Eligibility:

    • Essential workers: Individuals employed as teachers, instructors, medical professionals, veterinarians, government officials, or care workers, OR
    • Individuals with a gross income of $100,000 p.a. or less

  • Vehicle Criteria:

    • Electric or hybrid vehicles emitting less than 120g of CO2 per kilometre
    • Price and loan amount up to $55,000

Financial Car Loan Electric Vehicle Loan

Related Stores

Commonwealth Bank
Commonwealth Bank
Clean Energy Finance Corporation
Clean Energy Finance Corporation

Comments

  • littlesoldier on 19/12/2024 - 12:21
    +3

    Is it better to get car loan or novated lease?

    • bemybubble on 19/12/2024 - 12:22
      +4

      Like most answers. It depends. Not all employers offer a novated lease.

      • WhyAmICommenting on 19/12/2024 - 12:57
        +2

        If you can get a decent interest rate and are on over 80k I would say lease

      • JsMIT on 19/12/2024 - 13:13
        +4

        If you really want a new car then NL is an option but be careful which lease company you go through. Some will allow you to purchase the car for the depreciated value at the end of the lease and some won't allow that. Pick your leasing company very carefully. Most of the time, buying the car after the lease is the best value as you have already pay for the depreciation through the NL. But if the leasing company won't allow that option then they are pocketing the 'profit'.

        • WhyAmICommenting on 19/12/2024 - 13:31
          +2

          That’s news to me. I thought final payout cost was determined by ATO and mandatory.

          • JsMIT on 19/12/2024 - 13:54

            @WhyAmICommenting: You are correct in saying the ATO depreciation amount is usually the final payout cost. For a 3 yr lease its around 45% of purchase cost. However, some lease company won't allow you the option of a final buy out as part of the lease contract. They keep the car, sell it and pocket any profit. You loose if the car is worth more than the final buy out cost but you have already paid the 55% depreciation on it during the 3 year lease cost. This is why you need to read the lease contract and ask the right question before signing it.

      • Frozensage on 19/12/2024 - 13:34

        isn't car loan just one part of a novated lease? So in theory you could get this car loan and also a NL, long as the NL manager/provider is happy to deal with cba for the loan.

        • d3ft on 19/12/2024 - 13:36

          Novated lease requires a loan with a balloon payment, which this one doesn't offer.

    • tcommy79 on 19/12/2024 - 12:22
      +9

      I would say definitely novated lease but happy to hear otherwise.

      • jv on 19/12/2024 - 12:28
        -6

        otherwise

      • littlesoldier on 19/12/2024 - 12:32
        +2

        What I am considering is
        EV has significant more depreciation compare to ICE car (eg. resale value after 3 years)
        and the EV price are still going down hill

        So instead of owning a car via car loan (which you get the ownership from day 1)
        At the end of novated lease
        it might be more beneficial just to end the lease and get another EV car (likely to be even cheaper compare to 3 years ago)

        • whyisave on 19/12/2024 - 13:23
          +1

          So instead of owning a car via car loan

          Check the new subscription model, for EVs, from AGL
          https://next.agl.com.au/ev-subscription/salary-packaging

          You just 'rent' the EV from them, for 1-month, 6-month or 12-month periods.
          You can change the car to whatever you like, after those time periods.
          You don't pay for registration, stamp duty, insurance, nor maintenance (eg. tyres).
          Then, AGL also give their "competitive rates" for EV charging, between 00:00 - 06:00 all night.

          • WhyAmICommenting on 19/12/2024 - 13:33
            +1

            @whyisave: Only $45 a fortnight cheaper than my mg4 lease but worth checking I guess

            • whyisave on 19/12/2024 - 13:40

              @WhyAmICommenting: Is your MG4 lease a novated lease or just your own car financing ?

              With the AGL offering, there is no residual / balloon payment.

          • Nalar on 19/12/2024 - 13:38

            @whyisave: This doesn't give you equity for your outlay, not sure it's a good idea to replace a car you own, but if your on the fence about if a EV is good for you, this might help make the decision.

        • gromit on 19/12/2024 - 13:43

          most novated leases are only lease in name, you have a balloon payment at the end that you are liable for, you don't just get to hand the car back. Many of the vehicle brands do do guaranteed buyback at a set value (assuming good condition) but you pay through the ring for those deals.

          • BlinkyBill on 19/12/2024 - 13:52
            +1

            @gromit: That's not true, I had operating leases for many years and many cars. At the end of lease, I would buy it out and flip it if the lease company buy-out offer had enough buffer or hand the car back if I wasn't confident.

            Sure many leasing companies will steer you towards a finance lease, but many of the bigger ones will do up the numbers quite happily if you ask for an operating lease.

            • gromit on 19/12/2024 - 13:58

              @BlinkyBill: "generally" an operating lease is different to a novated lease. operating lease is between you and finance, common for businesses. novated is a 3 way deal between your work, you and a finance company.

      • JsMIT on 19/12/2024 - 13:27
        +1

        Once again NL is an option but not the best if you can get an associated lease. Very similar to a NL but you are leasing the car from an 'Associate' partner, parent, sibling etc who earns less than about $75K and they buy the car and lease it to you via a leasing company that will set up the associated lease with you employer for a fee. The associate will need to get an ABN and lodge a BAS but everything they get from you for lease cost is fully tax deductible to you and your associate. This works out way better than a NL They can then give you the total least cost back as a gift…

        • gumbs on 19/12/2024 - 14:15
          +1

          You can also stack this deal with an associate lease. So the low income associate (partner, parent etc) pays for the car on this loan, claims interest and depreciation against the lease payments and only pays tax on the difference. You can also generally package a second vehicle that might not be worth leasing normally so they can then claim depreciation for that vehicle and any interest payments.

          The only downside of this method is household reportable taxable income goes up quite a bit which affects hecs and child care subsidies etc.

          In my personal case I weighed up 4 options.
          1 keep my 15 year old car
          2 buy a 7 year old car
          3 novated lease for an $82k tesla m3
          4 associate lease for an $82k tesla m3 at 4% and my existing 7 year old 4wd.

          Option 4 & 1 worked out the same cost over 5 years when I did the exercise 2 years ago. However I massively under estimated depreciation. So it's now equivalent to option 2 (option 2 was biased as the car I was going to buy has very good depreciation).

          Associate leases should be the standard way of doing a lease. They are so much better then novated leases let alone when you can get discounted finance like this.

          • CacheHunter on 19/12/2024 - 15:29

            @gumbs: My 20 year old car is a perfect example for an associate lease. New engine paid for with pre tax dollars, move income from my top marginal rate income to spouse on 0%.

            The problems come when people use the savings to buy a better or newer car than they would have without a NL/AL and then have to break the lease unexpectedly.

            • gumbs on 19/12/2024 - 15:43

              @CacheHunter: That's fair, but breaking an AL is easy, unless you bought a tesla and it depreciated far faster then you paid it off because Elon dropped the price of new ones by $10k…..

              In my case the associate is in the 30% tax bracket and has a hecs debt, so it didn't make sense unless it was on an FBT exempt vehicle.

              I definitely used it to justify buying an $80k car vs a $25k one. But there wasn't options for a 7 year old (FBT exempt) $25k mid size performance ev so there was plenty of benefit in spending the extra money.

    • randomdude14 on 19/12/2024 - 12:23
      +6

      very different things and depends a lot on your circumstances and what you want to achieve.

      Car Loan:
      -Ownership: You own the car outright once the loan is paid off.
      -Flexibility: No restrictions on car usage or modifications.
      -Costs: Interest payments on the loan; no employer involvement.
      -Tax: Payments are made with after-tax income; no tax benefits.
      -Suitability: Better if you want full control and long-term ownership.

      Novated Lease:
      -Ownership: The car is leased and returned or purchased at the end of the term.
      -Tax Benefits: Payments are made with pre-tax income, reducing taxable income.
      -Inclusions: Running costs (fuel, maintenance, insurance) can be bundled into payments.
      -Restrictions: Employer must offer this option; rules may apply for usage.
      -Suitability: Ideal if you want tax savings and bundled car expenses.

      Decision Factors:
      -Go for a novated lease if you’re eligible and want tax benefits with bundled costs.
      -Opt for a car loan if you prioritize ownership and flexibility.

      • whyisave on 19/12/2024 - 13:27

        One thing about novated lease is that, if you do decide to end the lease early, you still have to pay the contracted amount "owing".

        Example:
        During a 24-month lease, you decide to end it in month number 19, then you will pay out the residual / balloon amount
        PLUS
        the 5 months (24 - 19 months) of weekly/fortnightly payments which were budgeted at the start of your lease.

    • dasher86 on 19/12/2024 - 12:24

      It depends on individual circumstances.
      Novated lease benefits are greater if you're on a higher income..and is also risky if as it's an agreements between you, your employer and a third party.
      This loan is pretty good on the surface. I haven't looked into residuals and loan length etc.
      If this was available when I got my EV I would definitely have considered it.

    • abs898 on 19/12/2024 - 12:37

      NL interest rates are higher but when salary sacrificed let's say you are in the 30% bracket, the real I terest will drop. Also running costs are fully sacrificed as well atm. So completely depends on how much you make, drive and what car you get

    • ozisaver on 19/12/2024 - 13:43

      DiY novated lease where you can choose your own financier . But most NL companies are scummy and won’t allow this

      • BlinkyBill on 19/12/2024 - 13:56
        +1

        It would be awesome to collate a list of these providers because some of the interest rates offered are criminal and they never reveal them, they just quote you a weekly/fortnightly/monthly post-tax amount.

        When pushed to reveal the interest the lease people do mental gymnastics not to disclose the number, then it's even crazier when you ask if they're getting upfront or trailing commissions on the finance arrangement.

    • Jayphen on 19/12/2024 - 13:50

      Very much depends on how much of it will come out of which tax bracket.

      If your salary is high enough that the whole thing comes out of the highest tax bracket, it's a no-brainer. That's almost 50 cents on the dollar you are saving. You also roll in electricity, maintenance (e.g. car wash), tyres and insurance in to the novated lease, pre-tax and no GST.

      At the end of it (I went for 3 years), you pay a residual (I will pay 19k for my model Y) and either keep it or sell it and start again.

    • kungfuman on 19/12/2024 - 14:10

      can they do the same rate for home loans?

    • ilikeit on 19/12/2024 - 15:40

      How long is a piece of string? Many variables at play.

    • naruto128 on 19/12/2024 - 16:03

      Always better off paying cash. If going NL the interest is higher n you better be sure you can complete the term as the break lease fees/penalties are horrendous. eg if you sign a 5yr NL and lose your job after 1 year and cannot transfer the NL to the new employer, you need to continue paying the lease payments without the tax benefits. If you break the lease you need to pay up the remaining 4 years plus penalty fee.

  • musai on 19/12/2024 - 12:23
    +8

    is gross income under 100k consider low income now?

    • tcommy79 on 19/12/2024 - 12:24
      +6

      100k is average now

        • TheFreaK on 19/12/2024 - 12:29
          +1

          Mr Lambo skewing those damn income statistics

        • ASR-Briggs on 19/12/2024 - 12:29
          +9

          I think you mean median bruv. Average literally means the mean.

        • vorsprung on 19/12/2024 - 12:29
          +9

          not the median you mean

    • melbourne guy on 19/12/2024 - 12:36
      +2

      The median salary of the average Aussie is $72,592 which is a better way to gauge the typical salary.

      • nigel deborah on 19/12/2024 - 13:29
        +1

        The *median Aussie you mean

    • Cluster on 19/12/2024 - 13:16
      +5

      $100k is poor in Sydney, while $100k in a small town is doing well

    • gumbs on 19/12/2024 - 14:17

      For a new car buyer it probably is.

  • Jamiea on 19/12/2024 - 12:28
    +10

    This deal will definitely upset jv

    • TheFreaK on 19/12/2024 - 12:29
      +7

      Look up

      • Jamiea on 19/12/2024 - 12:30
        +4

        Called it

  • Beezum on 19/12/2024 - 12:28

    What is ozbargains favourite EV?

    • Fredfloresjr on 19/12/2024 - 12:30
      +9

      Anything but Tesla

    • rodericb on 19/12/2024 - 12:30
      +3

      Tamiya Hornet

    • jv on 19/12/2024 - 12:32
      +1

      Eddie Vedder

      • whyisave on 19/12/2024 - 13:28

        Made me chuckle.

        Have a +1

    • nedski on 19/12/2024 - 12:33
      +3

      I must admit im tempted by the Xpeng G6. We currently own an Atto3.

      • sween64 on 19/12/2024 - 12:52

        How long have you had the Atto 3? Pros and Cons?

        • nedski on 19/12/2024 - 13:33

          We were one of the first to purchase so had it for 2 years now. Hasnt missed a beat. We have two kids under 5 and its been fine for trips down to Tasmania and elsewhere including the snow.

          We have solar at home so for most of the year we drive around for free and the servicing has been minimal. The fast charging network is getting better and better so charging on long trips has become less frustrating. For the price we paid for it and combined with a novated lease, it has been a major saving on our household budget.

          I think the only con would be a bit more limited space compared to our previous subaru outback and the max fast charging at 90kw is getting slightly annoying.

          • sween64 on 19/12/2024 - 15:56

            @nedski: What’s the range? That is, what was quoted? How much did you get at the start? How much do you get now? Has the battery degraded?

            How long does it take to charge from day 20 to 90% on a 90kw load or a typical fast charge in a road trip?

            I’m considering a BYD or MG. Just trying to work out how much I should spend on a higher battery?

            I usually do about 200km per week for work. Would occasionally like a road trip of 400km (one way) or so.

      • whyisave on 19/12/2024 - 13:32

        Go for this deal then:

        Free 10 Years Extended Warranty on XPENG G6 Parts & Battery
        https://www.ozbargain.com.au/node/875759

        There's still time for this (ie. before 31/12 , 2024)

        PS:
        XPeng Launches in Australia: Sydney Flagship Experience Centre Tour!
        https://www.youtube.com/watch?v=r85S7dfC6Uo

        • nedski on 19/12/2024 - 13:34
          +1

          I have seen the G6 and happy with it, I would need to take my partner to a showroom first so she can also check it out.

          • whyisave on 19/12/2024 - 13:42

            @nedski: I saw the G6 a the Sydney EV AutoShow , a couple of months ago.

            Cosmetically looks good, and is a Model Y competitor, at significant price difference.

            However to me, the Tesla software is a lot mature and advanced by getting a head-start,
            but Chinese EVs will 'catch up' in a few years' time.

            • nedski on 19/12/2024 - 13:43
              +2

              @whyisave: Im just forward thinking a bit as the kids are getting older and need a bit more space internally. A Model Y is a good space but I dont want to give Musk one red cent so the G6 is appealing.

      • jv on 19/12/2024 - 13:56
        -2

        the Xpeng G6

        1 speed auto…

        • fremeer on 19/12/2024 - 14:03
          +1

          That's how every electric car works(or 99%)

          Am electric motor is vastly different to an ICE and as such doesn't need the traditional gearbox in any capacity.

          • jv on 19/12/2024 - 14:05
            -1

            @fremeer: I need at least a 5-speed….

          • scud70 on 19/12/2024 - 14:11
            +1

            @fremeer: damn you fell for it @fremeer … you don't reply to jv with actual facts lol

    • Grok on 19/12/2024 - 12:44
      -3

      Tesla.

    • dasher86 on 19/12/2024 - 12:52

      Keeping an eye out on the new MG stuff.
      I find Tesla over priced.
      And BYD to be honest cap after sales and support with limited servicing branches.
      MG at least has a dealer network.

      • whyisave on 19/12/2024 - 13:33

        I find Tesla over priced.

        Tesla software is the most mature and has lots of support.
        In future, it might get Starlink integration, considering they're all Musk-affiliated companies.

        Maybe even come with a built-in Dogecoin miner

        • OzzyBrak on 19/12/2024 - 14:39
          +1

          How long until it has a SpaceX rocket ejector seat?

        • Snagsandonions on 19/12/2024 - 15:45
          +1

          Tesla build quality has fallen off a cliff and other brands are offering way more in design and pricing plus elons a man baby.

    • JIMB0 on 19/12/2024 - 12:55
      +2

      2003 E120 Corolla.

    • besttechadvisor on 19/12/2024 - 13:50

      IONIQ 5 N 🤤

    • ilikeit on 19/12/2024 - 15:45

      Must read Reddit Post before buying IMO:
      People who have purchased a Chinese vehicle over the past 5 years, what’s your experience?

      • sween64 on 19/12/2024 - 16:00

        Note that thread covers ICEVs and EVs. But still a good read.

  • happydude on 19/12/2024 - 12:39
    +16

    Encouraging people on less than $100k to take out $55k car loans has to be one of the more irresponsible policies I've seen government deliver.

    • Grok on 19/12/2024 - 12:44
      +10

      You must be young.

    • cerealsmok3r on 19/12/2024 - 13:03
      +1

      what would be a more responsible policy to encourage EV vehicle ownership?

      • happydude on 19/12/2024 - 13:32
        +5

        I'd take a step back and ask why does the government need to encourage EV vehicle ownership?

        Ozbargin car deals seem to suggest that the open market is doing a good job on it's own.

        • nedski on 19/12/2024 - 13:36
          +2

          Because there are cost savings to having an EV compared to an ICE car. We havent had to pay for petrol for 2 years which has been a massive saver on the household budget. Also by encouraging more EV purchases generates a second hand market with cheaper EV's for others down the line.

          This isnt exactly revolutionary, look at how they subsidized solar panels previously and now how cheap they are and are saving people money on their electricity bills.

          • happydude on 19/12/2024 - 13:50

            @nedski: So earning less than $100k and taking out a $55k car loan is the secret to economic prosperity?

            There is absolutely no reason the government to do this. Car loans are the secret to staying poor.

          • movieman on 19/12/2024 - 13:52
            +3

            @nedski: It's great at the moment, but once the government decides to charge a levy based on kilometers travelled, the figures may stack up differently.

            We're not yet at a tipping point at the moment, but it's going to happen.

          • besttechadvisor on 19/12/2024 - 13:52

            @nedski: There's an idea. Encourage landlords to invest in solar. That'll really help the working class renters, and it'll encourage more people to buy EVs since it'll be cheaper to run them.

          • trawg on 19/12/2024 - 14:26

            @nedski: Good post and I would add: it is the government's role to step in an address market failures. Climate change is a huge problem that the market is not currently addressing realistically. The government tipping the scales for EV ownership and moving away from fossil fuels will have a material impact.

            I don't necessarily think that this is a great policy - haven't had time to think about it enough yet - but it checks out on the surface.

            Given that Australians have historically (but especially in the last few years) massively over-extended themselves when it comes to car purchases, doing it in favour of EVs seems like an OK thing to do. (I think they should be taxing huge cars way more as well.)

            • nedski on 19/12/2024 - 14:48

              @trawg: Well everyone is entitled to their own opinion. I think one thing that is very much overlooked in regards to EV's is that it generates self sufficiency for our countries transport needs. For ICE cars, we rely on supply chains that bring a product over from the middle east and then dispersed across the nation. Now if we stop getting oil supplies or the supply chain breaks down, a lot of people are stranded. However for the people in EV's they are powering their cars from local energy.

              Because of how good our supply chains are, people think its harder to charge a car than fill up. But the second those supply chains are disrupted, people's viewpoints will rapidly change.

              • trawg on 19/12/2024 - 14:58

                @nedski: Absolutely (I was agreeing with you wholeheartedly in my post, in case it wasn't obvious). And your post nails another important aspect (I work in logistics so am intricately aware of the brittleness of supply chains!).

                In short, I think there are tons of reasons for government to do this that range from simple and local ("let's help you reduce the costs of your driving") to complex and geopolitical ("let's reduce our dependency on foreign oil and improve our strategic posture") with a lot of stops in between.

                I think my only issue with a plan like this is it should apply to cars below a certain value, to try to encourage automakers to start getting more involved in cheaper cars. MG and BYD are getting us there but incentives to push other manufacturers that way - instead of only churning out high-cost/high-profit/huge models - would help a lot.

                • nedski on 19/12/2024 - 15:02

                  @trawg: Yeah I agree it should be cheaper EV's. Where I work, the CFO novated an Ioniq for some insane price and he is now grumbling that the depreciation on it will mean that the balloon payment is likely to be more than what the car is worth at the time. I just nodded but was a little smug because I was comfortable with my Atto 3's depreciation schedule and when I pay the $13k in 3 years time, I will either be even or slightly ahead. The CFO vastly overpaid for his Ioniq.

        • cerealsmok3r on 19/12/2024 - 15:21

          its one of the more cost effective ways of reducing carbon emissions alongside Solar and its on the pathway of being more accessible. You're right in saying its an open market that does its thing and its treading along well but in the govt's eyes thats not good enough. We have so much solar that EVs can tap into almost for free and there is a large push to treat them like portable home batteries with the adoption of V2L/V2G technology and standards.

          I also dont think you read that properly and see that its up to 55k and a mg4 is already 30k which is far more reasonable than you think. while its based off an individual income, i imagine this would go towards a household where the income is much higher and over a period of several years.

          thats why im asking what a responsible policy looks like if your job was to encourage the uptake of EV ownership because quite frankly, i dont think there is one thats as easy to pull off

      • greatlamp on 19/12/2024 - 13:33

        Do nothing. Subsidising EV sales when we don't produce any in the country and are such a small proportion of the market is moronic. Let other countries pay the early adopter prices, that is literally what we do for pharmaceuticals.

        • cerealsmok3r on 19/12/2024 - 15:12

          soooo hows that different from any other car available here? very little were produced here but does that make it moronic? pretty terrible argument if you ask me.

          its already heavily subsidised with chinese EV vehicles printing them out and a global oversupply of lithium batteries It's not gonna change the fact that sooner or later we will need to go through this transition, the only question is whether you want it to a painful journey or relatively seamless one

    • Rysta on 19/12/2024 - 13:13

      Unfortunately its already incredibly common. The vast majority of new car sales are on loans and most of the top selling cars are expensive SUVs - it ensures that a lot of poor people remain poor.

      At least this way they're not spending even more on a Ford Ranger I guess :/

      • Cluster on 19/12/2024 - 13:19
        +1

        I feel like a freak for buying a new car this year with cash I saved up. It's just not the way things are done any more.

    • Bisky1 on 19/12/2024 - 13:22

      Whilst I generally agree, plenty of people might have wealth with low income. If they think a 50k EV works for them, its an incentive to make them pick that. The math works a lot better once you get to 80k+, too.

      You may be 40+yo, have a house paid off etc.
      Or, consider the elderly? Especially as some would drive lots and not mind home charging / stops on long trips.

      • happydude on 19/12/2024 - 13:36
        +1

        The car may work for some people, but why should it be government subsidised?

        If you are 40ish making less than $100k with a house paid off I can just about guarantee they are not the sort of person to take out a loan for a $55k car.

        People who are good with money don't take out large loans for deprecating assets.

        • Bisky1 on 19/12/2024 - 14:35

          A 2x2 matrix of public and private, and benefit and cost.

          EVs benefit the public, and hence can be taxed less. Subsidies are explicitly used to ensure public benefits are incentivised. A private cost, like a gasoline car, causes more environmental dmg so shouldn't be taxed the same.

          Same as any green scheme. You can consider it a subsidy, often its just rebates of taxes as you are giving a $ benefit thats recognised compared to other companies/the fleet.

          People good with money tend to consider their options and do the numbers. In fact, people good with money love leverage at sweetheart rates.

          If you need a car, you can take a loan out on it. Or you can take a bigger loan on something else ie house, just cause the house isn't a depreciating asset.

          If the car loan has a big subsidy, the only difference is the interest rate is higher because of your arbitrary rule - starting principal remains unchanged.

  • Grok on 19/12/2024 - 12:43
    +7

    Labor loves giving out free money. They paid the Commonwealth Bank $150,000,000 to run this scheme.

    So if 10,000 people take up this offer that is $15,000 per EV.

    Labor will probably classify this spending as an “investment” and keep it off the budget books.

Login or Join to leave a comment
Login Join