Electric car loans explained

An electric car loan is a fixed sum of money lent by a financial institution that’s used to buy an electric vehicle. The loan is then repaid in regular instalments, plus interest, over the term of the loan. At the end of the loan term, the loan will be repaid. 

Electric car loans can be either secured or unsecured. Here’s a closer look at their key differences.

Secured electric car loans

• Your loan will be secured against the electric car you’re buying

• Wisr offers secured car loans up to a maximum of $147,000

• Wisr loans can be repaid over 3, 5 or 7 years

• Loan rates can be a little lower than with unsecured car loans
  

Unsecured electric car loans

• Your loan won’t be secured against the electric car you’re buying

• Wisr offers unsecured car loans up to a maximum of $62,000

• Wisr loans can be repaid over 3, 5 or 7 years

• Loan rates can be a little higher than with secured car loans

Want to know more about all things car loans? Check out our complete Smart Guide, The Complete Guide to Car Loans in Australia.

You sure can! At Wisr we offer a 0.50% discount on the interest rate that you’re eligible for if you buy an electric car rather than a petrol or diesel vehicle. This is because here at Wisr, we like to reward you for doing good. So, if you’re going to go the extra mile and switch to a more eco-friendly vehicle, we’ll make sure it’s worth your while.

Yes! At Wisr we also offer our discount on hybrid vehicles as well. A hybrid car is a vehicle that uses both a petrol engine and an electric motor to power it. 

Unlike a purely electric vehicle, it doesn’t require you to plug it in and charge it. This can make it a more convenient option if you want to go a bit greener but don’t quite have the infrastructure to practically make the shift to a fully electric vehicle just yet.

Absolutely. If you’re currently in the middle of a secured car loan contract for another vehicle, we can help you upgrade to something more sustainable by refinancing your current contract. We may need a valid payout letter from your current financier.

Electric car loans can come with heaps of benefits. Here are just a few.

• Better rates: as we mentioned earlier, you’ll get a better interest rate if you’re using your car loan for an electric car. This means that your monthly repayments will be lower and this could mean that you’re able to pay off your loan quicker.

• Spread the cost: opting for an electric car loan instead of paying for the whole amount with cash could help you keep hold of any savings while spreading the cost of the car into more manageable instalments. It could also mean that going green is a possibility for you if you don’t have enough savings to go electric on your own.

• Reduce your carbon footprint: an electric car loan would allow you to buy an electric vehicle and do your bit for the environment. Plus, you’d also benefit long-term from cheaper running costs.

• Improve your credit score: repaying your car loan consistently could help to give your credit score a boost over time, opening up more possibilities for you in the future.

As with all borrowing, there are a few things to consider before taking out an electric car loan.

• Saving up for the purchase: if you have the savings to buy the car outright, you’ll save money in interest by simply paying upfront. So, before you go ahead and apply for an electric car loan, it’s always worth weighing up all your options.

• Keeping up with loan repayments: it’s essential that you’re able to keep up with your electric car loan repayments. Missing repayments or defaulting on your loan will have a negative impact on your credit score. Plus, if you’ve opted for a secured loan, your lender can repossess your vehicle to recover their costs.

• Added costs: before you take out an electric car loan, have a think about whether there are any other costs you need to think about. For instance, do you have the infrastructure to charge your car at your property? You may need to factor these into the cost of your electric car.

Think an electric car loan is the right move for you? You can get a quick rate estimate with Wisr to find out your personalised rate without affecting your credit score. Just select Electric/Hybrid Vehicle as your loan purpose. 

If you’re eligible and you like what you see, you can then go ahead and complete a Wisr loan application. Simply follow the steps, provide us with your documents and if approved, you’ll have the funds to buy your new electric car. 

Want to find out your eclectic car loan options? Get a rate estimate now in just a couple of minutes.