Financing the problem – Clean Energy Loans – Part 3
So, you’ve had enough of high fuel prices and decided to go electric but need funding.
Insights with Infinance by Brian Coogan
The good news is most banks provide Clean Energy Loans at 1% interest up to $80k for up to three years or some at 0% up to $50k for 5 years (T’s and C’s apply). Normal home loans rates apply after that.
This applies to new and used vehicles that are either electric or hybrid, plus extends to home loans for things like insulation, double glazing, solar panels, heat pumps and more - anything that is related to energy efficiency.
As a comparison let’s say you buy a $50k vehicle with a $20k trade in and need to finance $30k. Taken over 3 years at 1% your payments would be $846/month. The same at normal car finance rates around 9.95% (TAP) would be $987/month but if you stretched it over five years, it would be $650 month.
A separate mortgage top up loan for five years fixed for two years at 4.49% would be $560 month, or a revolving credit facility currently at 5.89% floating would be $580 month but of course you can smash that out soon as you want and are only charged interest on the outstanding monthly balance.
The great news is you no longer need to be at the mercy of fuel supply or price volatilities, or let’s say you need to keep that diesel ute because it suits your lifestyle and are considering buying an EV as a runabout to cut back on fuel usage.
It’s important to ensure the cost of an additional vehicle warrants the expense to buy, insure, run, maintain and take depreciation on is worth it to save a few quid on fuel.
Do the math, run the exercise, see what works for you then get in touch with your broker to sort out the best available options for funding.
For more on the above and links to take you to home energy loans go to www.infinance.co.nz/insights
Written by Brian Coogan, Licensed Financial Adviser and Director at Infinance – Taupō
“Expect problems and eat them for breakfast” – Albert A Montapert