Electric vehicles are no longer just a futuristic concept — they’re here, they’re practical, and Australians are buying them in record numbers. But with EV prices ranging from $40,000 to over $130,000, most buyers need finance. This guide walks you through everything you need to know about electric vehicle finance in Australia in 2026.
Why EV Finance is Different
Financing an electric vehicle isn’t the same as financing a petrol car. Some lenders are still catching up to the EV market, which means interest rates, residual values and loan structures can vary significantly. Working with a specialist EV finance broker gives you access to lenders who truly understand the asset — and that can mean thousands saved over the life of your loan.
Types of EV Finance Available
1. Chattel Mortgage (Business Use)
If you’re using your EV for business purposes, a chattel mortgage is often the most tax-effective option. You can claim the GST upfront, depreciation over time, and interest as a business expense. For EVs under the FBT exemption threshold, the tax savings can be substantial.
2. Novated Lease
Employees can salary package an EV through a novated lease arrangement. Since July 2022, fully electric vehicles under the luxury car tax threshold ($89,332 in 2026) are exempt from FBT — making novated leasing one of the smartest ways to get into an EV.
3. Consumer Car Loan
For personal-use EVs, a standard consumer car loan is straightforward. Several lenders now offer “Green Car Loans” with preferential interest rates for electric vehicles — typically 0.5% to 1.5% lower than standard car loan rates.
4. Finance Lease
A finance lease suits businesses that prefer lower monthly repayments with a residual (balloon) amount at the end. It keeps the asset off your balance sheet and provides flexibility at the end of the term.
The FBT Exemption — A Game Changer for Business EV Finance
One of the biggest incentives for businesses financing EVs is the Fringe Benefits Tax (FBT) exemption. Eligible zero and low-emission vehicles are fully exempt from FBT when provided to employees. This means businesses can provide an EV as a company car or through a novated lease with zero FBT liability — a saving of up to $15,000+ per year depending on the vehicle value.
Top EVs Australians Are Financing Right Now
Tesla Model 3 — from $59,900. The most popular EV in Australia, with strong residual values.
Tesla Model Y — from $65,900. Ideal for families needing the extra space of an SUV.
BYD Atto 3 — from $44,990. One of the most affordable EVs on the market with great range.
BYD Seal — from $54,990. A compelling alternative to the Tesla Model 3.
Polestar 2 — from $63,900. Premium Scandinavian EV with excellent driving dynamics.
EV Finance Rates in 2026
Green Car Loan rates currently sit between 6.49% and 9.99% p.a. comparison rate depending on the lender, loan term and your credit profile. Standard car loan rates for petrol vehicles typically run 0.5–1.5% higher — so your EV finance is already at an advantage. Loan terms range from 1 to 7 years, with most buyers opting for 3–5 years.
How to Apply for EV Finance
Choose your vehicle — know the make, model and purchase price.
Speak to a broker — a specialist EV finance broker compares 30+ lenders on your behalf.
Submit your application — provide ID, income evidence and vehicle details.
Get approved — most EV loans are approved within 24–48 hours.
Drive away — funds are settled directly with the dealer or private seller.
Why Use a Broker for Your EV Finance?
A finance broker does the heavy lifting for you. Rather than applying to one bank and hoping for the best, a broker accesses a panel of 30+ lenders — including specialist EV lenders — and negotiates the best rate on your behalf. There is no cost to you as a borrower, and a broker can often secure rates banks won’t offer directly to the public.
At Co-Pilot Finance & Insurance, our brokers specialise in asset and vehicle finance. We help Australians get behind the wheel of their EV with competitive, tailored finance solutions.
Ready to Finance Your EV?
Getting a quote takes less than 2 minutes and won’t impact your credit score. Our EV finance specialists are ready to help you find the right loan — whether it’s a Tesla, BYD, Polestar, or any other EV brand.
Apply for EV Finance today and get your quote within hours.