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

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EV Car Loan 5.49% p.a. (6.92% Comparison Rate) for Essential Workers or Gross Income Below $100,000 @ Commbank EV Access Program
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bemybubble on 19/12/2024 - 12:18 commbank.com.au (655 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

              • 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
        +1

        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
      +1

      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
        +2

        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
    +8

    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.

    • bemybubble on 19/12/2024 - 12:45
      +2

      Other banks have this offering - however CBA is the notable competitor in this scheme. Westpac rates suck…

      • Grok on 19/12/2024 - 12:46
        -2

        You may be right but I was just reading this

        https://www.drive.com.au/news/australian-government-to-fund-…

        • bemybubble on 19/12/2024 - 12:47

          Yikes…

        • greatlamp on 19/12/2024 - 13:41
          +9

          That $150 million is the value of the subsidy compared to the market rate of car loans. If the government didn't lend this money they wouldn't have an extra 150 million, because they wouldn't have borrowed it in the first place.

          The cost for the government to borrow (4.35%) is already significanly lower than the car loan interest rate (at least 9%). The actual cost to the budget is minimal - it would be the administrative costs of the policy.

          This scheme is much cheaper than giving tax deductions - like the novated lease and the instant tax write off which our tradie friends use to buy their 100k raptors. Very popular tax cuts for businesses which is favoured by the more 'fiscally responsible' party.

          • Grok on 19/12/2024 - 14:08
            +2

            @greatlamp: Where did you get that analysis from?

            From my link about

            The Commonwealth Bank will receive $150 million from the government-run Clean Energy Finance Corporation to offer "low-interest" loans for workers earning less than $100,000 a year, plus essential workers such as police officers, teachers, fire fighters and nurses.

            This was a straight cash dump to CBA, nothing to do with the governments ability to borrow money cheap.

            Labor gave CBA $150,000,000 to subsidise loans to traditional Labor Party voters.

    • cerealsmok3r on 19/12/2024 - 13:04
      +3

      This isn't specific to labour. The liberal government gave you cash incentives if you outright purchased them. The money is always regardless of who is in power.

      The reason why is because every state and territory ran it and the uptake was small because the reach was not there. This is a more sensible approach if you have money dedicated for this and to encourage corporations that have more reputation and branding to get the messaging across. No doubt they will be getting a cut of it

      • jv on 19/12/2024 - 13:58
        +1

        This isn't specific to labour.

        True, it is Labor instead…

        • cerealsmok3r on 19/12/2024 - 15:07

          alright you got me there

    • mustang87401 on 19/12/2024 - 13:47
      -3

      Labor is disgusting me more every day. Migration rampant, debt exploding and a PM that loves his freebie lounges more than doing right by the aus people.

    • OzzyBrak on 19/12/2024 - 14:52
      +2

      Backed by $150 million from the Clean Energy Finance Corporation (CEFC), the Commonwealth Bank is now offering low-interest EV loans for workers earning less than $100,000 a year, as well as essential workers like police officers, teachers, fire fighters and nurses.

      The government fronts the money, the CBA loan it out to eligible people and charge a reduced margin to cover their own costs. The government is repaid the full amount less bad debts + an agreed interest payment from CBA.

  • trantonz on 19/12/2024 - 12:43
    +1

    under $55k may be the deal breaker for some.

    • Grok on 19/12/2024 - 12:47
      +4

      China says hold my beer.

      • whyisave on 19/12/2024 - 13:35
        +1

        Hold My Tsingtao

    • Jamiea on 19/12/2024 - 12:51

      Base M3 RWD is under $55k

      • Magicmannn on 19/12/2024 - 12:57
        +3

        Drive Away Price $59,822?

        • E5TOQUE on 19/12/2024 - 19:15

          $1400 off via referral (Just use Ozbargain to find a referral code)
          $3300 off if you get it via Novated Lease

          Helps take $4400 off the asking price.

  • dasher86 on 19/12/2024 - 12:53
    +1

    MG4 is probably perfect for this scheme.

  • sunnyc on 19/12/2024 - 13:06

    more than 1.99%

  • Mokr on 19/12/2024 - 13:08

    The government says the loans will be offered at interest rates up to 5 percentage points lower than the standard rate, which could save more than $8,000 in interest for a $40,000 loan repaid over seven years.

    • Cluster on 19/12/2024 - 13:17
      +11

      People taking out 84 month loans for a car really need to reevaluate their life choices and whether they should be buying a new car in the first place.

      • Lord Ra on 19/12/2024 - 14:22
        +1

        ^^^^^^^^^
        Yep, this, 110%.
        Such people should complete the baby steps from Dave Ramsey, then just buy 2nd hand. Save, sell, then upgrade.

  • Gunnar on 19/12/2024 - 13:10
    -1

    Any deals on G63 loans? Asking for a friend

  • ciab on 19/12/2024 - 13:12
    +1

    It also can be used for second hand EVs also.

  • H3R34TH4C0MM3NTS on 19/12/2024 - 13:22
    +6

    why wont they offer discounts for anyone wanting to pay cash (the full amount straight away) rather than taking loan out which just adds to the sticker price throughout the life of the car

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

      Do you mean from a FBT perspective? Not having to go through a NL provider and being able to self-fund without a loan would be a game changer if you can book in the FBT benefits.

      I understand an Associate Lease is a good middle ground compared to the exorbitant rates with NL providers.

      • H3R34TH4C0MM3NTS on 19/12/2024 - 14:03
        +3

        Yeah like offer to salary package the full amount .

        say you earn 100K, you can pay for the 55K EV pre-tax, so your taxable income is now only 45K for the year.

        Another option is instead of the government giving thier CBA mates 10K on every loan taken out, just rebate purchasers who can cover the full amount so your 55K EV ,will only cost you 45K out of your after tax income.

        • netjock on 19/12/2024 - 14:28
          +2

          giving thier CBA mates

          You got it. You give it to your mates not the people. This is just another form of corporate welfare on tax payer funded credit.

          For all the moaning about cost of super concessions, negative gearing and franking credits. Just follow how it works.

          Super concessions reduce pension payments of course reduction in pension should be same as super concessions.
          Negative gearing is interest paid to the banks that pay staff, rents, company tax then give dividends and franking credits to retirees and super funds

          NL for EVs. They could have just made it GST free but they had to wash it through their "mates"

  • mmrazz on 19/12/2024 - 13:26
    +1

    "Government officials" are essential workers now?

    • Frozensage on 19/12/2024 - 13:37

      so all public servants then?

    • mustang87401 on 19/12/2024 - 13:48
      +2

      Public servants are far from essential workers.

    • MrFrugalSpend on 19/12/2024 - 14:30

      BAHHAHAHAHHAHAHAHAHAHAHA - If they are essential workers, find me a job that isn't? How rude to everyone else.

    • MrFrugalSpend on 19/12/2024 - 14:39

      What a joke. Labor are abandoning their core supporter base. How insulting to everyone else.
      Construction workers hold up the economy, were considered essential when they needed them to keep it going during covid - but we aren't included.
      How is the truck driver that delivers essential things not essential,
      How is the farmer or farm hand not essential?
      Can we survive without the grocery sector and everyone in it?
      Can we survive in a modern society without electricity - what about the people working on power projects or its production to power these EV's?
      The list goes on…

      Is a vet really more essential than them? Don't get me wrong, I don't want for exclusion, I want more inclusion.
      Then we have Government officials - often some of the least essential people out there. Just a self-serving motion to avoid whinging from their own staff.

      I just think it is so insulting to in effect say a whole bunch of hardworking Australians are non-essential by their omission.

      F…. you Chris Bowen.

  • PlaunsJanus on 19/12/2024 - 13:53

    *Eligibility
    Smartphone access
    (To apply, download the CommBank app)

  • Windows98 on 19/12/2024 - 13:54

    If you have access to novated lease that would work out better but this is also great for anyone who doesn't.

    • jv on 19/12/2024 - 14:00

      If you have access to novated lease that would work out better

      Depends on what is your top tax bracket.

      • Windows98 on 19/12/2024 - 14:09

        I thought everyone on ob earned 180k+

        • jv on 19/12/2024 - 14:11

          Then they can't get this loan…

  • besttechadvisor on 19/12/2024 - 13:55

    Hyundai Inster & Kia EV3 affordable Korean EVs are coming next year, for those who aren't yet convinced by Chinese vehicles.

    • jv on 19/12/2024 - 14:02

      Hyundai Inster & Kia EV3 affordable Korean EVs are coming next year

      They are quite ugly though… Especially the Inster… Can't see it being a hit with influencers…

      • besttechadvisor on 19/12/2024 - 14:24

        They are quite ugly though… Especially the Inster…

        Maybe in your opinion, but the Inster looks similar to other highly popular Hyundai vehicles such as the Kona. It's also the modern day Getz, which sold like a sausage sizzle.

        Can't see it being a hit with influencers…

        What influencers?

        • cerealsmok3r on 19/12/2024 - 15:23

          no i agrtee with jv on this one. i saw the specs of the ev6 and 9 and thought they were amazing until i saw what they looked like (interior and exterior).

          I dont think they understand what good aesthetics is as opposed to a futuristic one

          • besttechadvisor on 19/12/2024 - 15:33

            @cerealsmok3r: Everyone's entitled to their personal preferences…

            … but the Kia EV6 is the most sold non-Chinese made EV in Australia, and the Hyundai Kona Electric is the 2nd.

            So, for those people who want to buy an affordable non-Chinese EV, the EV3 and Inster will be top contenders.

  • happydude on 19/12/2024 - 14:02
    +1

    Individuals employed as teachers, instructors, medical professionals, veterinarians, government officials, or care workers

    So highly unionised and mostly left leaning voters.

    Makes sense.

    • jv on 19/12/2024 - 14:04
      -2

      left leaning voters

      How come CFMEU bikies are not on that list?

      • happydude on 19/12/2024 - 14:06
        +1

        The bikes say jump and the constructions workers say how high.

        So the CFMEU bikies are covered under the program as 'instructors'.

  • decryption on 19/12/2024 - 14:07
    +3

    Can get the same interest rate from Bendigo Bank too - lots of banks offer Green loans for EVs at the same rate, some even lower. Don't know why the government felt it had to give CBA $150m via the CEFC for this. Maybe if the interest rate was 4% instead of 5.49%.

  • fremeer on 19/12/2024 - 14:11

    Normally you can use this loan and self manage your novated lease through someone like smart salary.

    That's going to be a pretty large savings since now the finance and the cost of the car is going to be fully claimable on tax.

    With a novated lease the cost could actually go below the cost of buying with cash I think. Need to check properly but would be close.

    Add in tax savings on insurance and rego and you are probably significantly better off in a year of owning an ev that costs 55k vs a petrol car that costs $40k.

    • jv on 19/12/2024 - 14:12

      Normally you can use this loan and self manage your novated lease

      Doubt it.

  • Lord Ra on 19/12/2024 - 14:41

    The Electric Vehicle Council's "State of EVs" report released this week showed electric cars now account for nearly one in 10 new car sales in Australia, a 150 per cent increase on the year before.

    The report said there were now 122 EV models available for sale in Australia, and several of the most popular models including the Tesla Model 3, BYD Seal and BYD Atto 3 are advertised at prices below $55,000, which would make them eligible under the government's loan scheme.

    Interesting to see how these numbers change 6 months from now.

    Personally, I cannot afford/stomach the 2nd most expensive thing in my life depreciating like crazy, so will always go for a 3-6 year old car instead.

  • Lit Homie on 19/12/2024 - 14:43

    I did the maths a long time ago. Novated lease is almost always better especially if you make money. Best of luck

  • MrSparkle on 19/12/2024 - 14:44
    +3

    Well this should fix the cost-of-living crisis! More debt, for lower (relatively) income households. This is the kind of fearless irresponsibility from government that sustains my joy and hope.

    • rooon on 19/12/2024 - 16:40
      +1

      Came here to say the same thing. Just bring back the unused portion or new EV rebates instead if plunging lower paid people into more debt!

  • DEvok on 19/12/2024 - 15:11
    +1

    Will bad credit score still get this approved? Or no run around checks.

  • OzzyOzbourne on 19/12/2024 - 17:05

    I pay a lot of tax but I'm not essential. Fortunately I don't want an ev either.

  • joerd102 on 19/12/2024 - 17:07
    +2

    not really sure this is a deal.Government just spent a truck load of money doing a royal commission on banks.. and CBA was always the one that came up. Complaints that banks make way to much profit.

    Also Government - hey CBA here's 150 Million of taxpayers money in a cost of living crisis to add more to your profit.

    IMHO- just do a rebate.

  • Danger on 19/12/2024 - 17:08

    It'd push the EV prices up. Anything that Govt touches goes up.

  • Brick Tamland on 19/12/2024 - 17:18

    Looks like polestar is handing out discounts to get its polestar 2 under the threshold. Seems like a good deal with lower interest.

  • jayz on 19/12/2024 - 17:21

    Any recommendations for EV car loans where the vehicle is worth more than $55k?

  • MauTauAja on 19/12/2024 - 17:25

    It would be $15,097.50 over 5 years of interest on the top of the car price and add insurance as well (won't be cheap for EV).

  • Drakesy on 19/12/2024 - 17:25

    Just novate lease it…

  • NetflixAlwaysCheap on 19/12/2024 - 17:28
    +2

    id wait for the xiaomi SU7

  • Shaun Ross on 19/12/2024 - 18:12

    A lot to take in here so what I would like to know I am on a low income but I have around $1000 a month. Would like a new car big enough to tow my caravan doesn't have to be new but in good condition low mileage happy to pay into something for a year before I get anything as I have a car it's just getting old. I have a 800point credit report so very good.
    Thanks for any help

  • soggypotato on 19/12/2024 - 18:22

    Is it me or the comparison rate is so sh*t

  • tunzafun001 on 19/12/2024 - 18:58

    So it doesn't need to be a new vehicle right?

    Grab a PHEV or used ionic or similar (now that Tim Pallas has been pantsed).

    Taking cash out of your offset would be a higher rate than this.

    But it is CBA…the "Harvey Norman" of banking ..

  • Loki556 on 19/12/2024 - 19:01

    A bit of a weird “deal” - and I mean the fanfare about the big announcement, not the posting of it on OzBargain. RACQ has offered a 5.99% EV loan, which actually seems cheaper than this one (better comparison rate) and without any constraints. So not very clear on what the benefit of this one are over it and even if it’s a bit better, there is really not much in it at the $55k limit.

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