Electric vehicles are no longer just a trend — they’re rapidly becoming the mainstream choice for Australian car buyers. With EV sales hitting a record 14.6% of all new car sales in March 2026 and demand surging 90% year-on-year, now is the perfect time to explore electric vehicle finance options that work for you.
At Co-Pilot Finance & Insurance, we help Australians access competitive electric vehicle finance — whether you’re buying your first EV, upgrading from a petrol car, or financing an electric vehicle for your business.
Why EV Finance is Booming in Australia in 2026
A perfect storm of factors is driving record demand for electric vehicle loans right now:
Rising fuel costs — petrol prices continue to climb, making the switch to electric more financially attractive every month
Government incentives — the federal government’s Clean Energy Finance Corporation (CEFC) has committed $60 million to discount EV loan interest rates by 0.5–1%
FBT exemption — eligible EVs under a novated lease are exempt from Fringe Benefits Tax, saving employees thousands per year
More lender competition — banks and non-bank lenders are introducing dedicated green car loan products with lower rates
$20,000 instant asset write-off — now permanent for businesses, making EV asset finance even more tax-effective
Electric Vehicle Finance Options in Australia
There’s no one-size-fits-all approach to EV finance. Here are the main options available to Australians:
1. Green Car Loans
Many lenders now offer green car loans specifically for electric and hybrid vehicles, often at rates 0.5–1% lower than standard car loans. With CEFC backing, eligible borrowers can access rates from as low as 5.29% p.a. Ideal for individuals purchasing a new or used EV for personal use.
2. EV Asset Finance for Business
If you’re a business owner, electric vehicle asset finance is one of the smartest investments you can make right now. Options include:
Chattel Mortgage — you own the vehicle from day one, with full tax deductions on interest and depreciation
Finance Lease — lower monthly payments with the option to purchase at the end of the term
Commercial Hire Purchase — structured payments that suit your business cash flow
Business EV finance also qualifies for the $20,000 instant asset write-off (made permanent in the 2026 Federal Budget) for eligible vehicles — a significant tax advantage.
3. Novated Lease
For PAYG employees, a novated lease on an electric vehicle is one of the most tax-effective ways to get behind the wheel. Benefits include:
Lease payments from pre-tax salary — reducing your taxable income immediately
FBT exemption on eligible EVs — saving thousands per year
GST savings on both the purchase price and running costs
All running costs (charging, insurance, maintenance) bundled into one simple payment
How Much Can You Save by Financing an EV?
The numbers stack up better than most people realise:
Fuel savings: The average Australian spends $3,000–$4,000 per year on petrol. EVs cost roughly $500–$700 to charge annually — a saving of over $2,500 every year
Service savings: EVs have fewer moving parts, meaning servicing costs are typically 30–40% lower than petrol vehicles
Rate discount: On a $70,000 EV loan, a 1% rate reduction saves approximately $700 per year in interest alone
Over a 5-year loan term, the total cost of ownership for an EV can be significantly lower than an equivalent petrol vehicle — even accounting for a higher purchase price.
Most Popular EVs Being Financed in Australia (2026)
BYD Atto 3 — competitive pricing, strong resale value, high lender appetite
Tesla Model 3 — proven track record, widely accepted by lenders
MG4 Electric — affordable entry point, great for first-time EV buyers
Kia EV6 — premium feel, well-suited to business asset finance
Hyundai IONIQ 6 — competitive range, strong residual values at end of term
Why Use a Finance Broker for Your EV Loan?
Going directly to a bank for your EV finance means you’re limited to one lender’s products and rates. A specialist finance broker like Co-Pilot Finance & Insurance gives you access to 40+ lenders, including those with dedicated green car loan products.
We compare rates, structure your finance correctly, and make sure you’re taking advantage of every available incentive — from CEFC rate discounts to business tax deductions and FBT exemptions. You get the best outcome without the legwork.
Ready to Finance Your Electric Vehicle?
Whether you’re an individual looking for a green car loan or a business owner exploring EV asset finance, the team at Co-Pilot Finance & Insurance can help you find the right solution at the best rate.
Apply online today or call us to speak with a specialist about your electric vehicle finance options. With EV sales breaking records every month, there’s never been a better time to make the switch.
Co-Pilot Finance & Insurance is an Australian finance and insurance broker with access to 40+ lenders. We specialise in EV loans, business loans, asset finance, and insurance. Learn more at cpfi.com.au.