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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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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

Related Stores

Commonwealth Bank
Commonwealth Bank
Clean Energy Finance Corporation
Clean Energy Finance Corporation

closed Comments

Search through all the comments in this post.
    • Tesla.

    • Keeping an eye out on the new MG stuff.
      I find Tesla over priced.
      And BYD to be honest cap after sales and support with limited servicing branches.
      MG at least has a dealer network.

      • +2

        I find Tesla over priced.

        Tesla software is the most mature and has lots of support.
        In future, it might get Starlink integration, considering they're all Musk-affiliated companies.

        Maybe even come with a built-in Dogecoin miner

        • +1

          How long until it has a SpaceX rocket ejector seat?

        • -1

          Tesla build quality has fallen off a cliff and other brands are offering way more in design and pricing plus elons a man baby.

        • +1

          One thing that has become apparent about Tesla is the fantastic build quality coming out of their Shanghai plant. I've got a 2021 M3 with >120k and it's every bit as good as our 2021 RAV4 Cruiser.

          Work colleague just got a Highland M3 and the interior assembly, material quality, panel gaps and paint quality is stupendous - a noticeable cut above mine.

          They've made big strides with interior noise and suspension compliance too - they're really approaching true luxury car status now aside from the minimalism.

    • +2

      2003 E120 Corolla.

    • +1

      IONIQ 5 N 🤤

      • Note that thread covers ICEVs and EVs. But still a good read.

        • +1

          Correct. But this thread is relative many people buying EVs at the cheaper end of the spectrum - cars under $55k.

          The real value for me was not just reading about the varying levels of quality and performance, but the extremely poor levels of service from some manufacturers. For example, many MG and LDV owners having their vehicles off the road for months while waiting for them to be assessed, parts shipped from China and then repairs. Who can afford that? Also, issues never being fully resolved, but owners just accepting the issues. No recall or anything. Some crazy stuff.

          • @ilikeit: What LDV EV is in Australia currently?

            I went to Skoda the other day and it was going to cost my $270 for them just to look at a problem I had, then more to fix it. Plus parts. Some parts they didn't have and were going to order in.

            It isn't just Chinese cars.

            • @serpserpserp: LDV eT60, Australia’s first pure electric dual cab ute and LDV eTerron 9 electric ute arriving early 2025.

              My point being that no matter how cheap they are, if the service, repairs and short repair timeline aren’t up to scratch the car is worthless to many. I’m not anti Chinese cars or EVs by any means, just don’t want to be burnt. I am very interested to know who is going to provide servicing and warranty repairs for the influx of new Chinese car companies like Zeekr and Xpeng. Are they going to outsource it since they wouldn’t have the infrastructure and reach available yet?

    • jv

  • +37

    Encouraging people on less than $100k to take out $55k car loans has to be one of the more irresponsible policies I've seen government deliver.

    • +13

      You must be young.

    • what would be a more responsible policy to encourage EV vehicle ownership?

      • +13

        I'd take a step back and ask why does the government need to encourage EV vehicle ownership?

        Ozbargin car deals seem to suggest that the open market is doing a good job on it's own.

        • +3

          Because there are cost savings to having an EV compared to an ICE car. We havent had to pay for petrol for 2 years which has been a massive saver on the household budget. Also by encouraging more EV purchases generates a second hand market with cheaper EV's for others down the line.

          This isnt exactly revolutionary, look at how they subsidized solar panels previously and now how cheap they are and are saving people money on their electricity bills.

          • +4

            @nedski: So earning less than $100k and taking out a $55k car loan is the secret to economic prosperity?

            There is absolutely no reason the government to do this. Car loans are the secret to staying poor.

          • +3

            @nedski: It's great at the moment, but once the government decides to charge a levy based on kilometers travelled, the figures may stack up differently.

            We're not yet at a tipping point at the moment, but it's going to happen.

          • @nedski: There's an idea. Encourage landlords to invest in solar. That'll really help the working class renters, and it'll encourage more people to buy EVs since it'll be cheaper to run them.

          • +2

            @nedski: Good post and I would add: it is the government's role to step in an address market failures. Climate change is a huge problem that the market is not currently addressing realistically. The government tipping the scales for EV ownership and moving away from fossil fuels will have a material impact.

            I don't necessarily think that this is a great policy - haven't had time to think about it enough yet - but it checks out on the surface.

            Given that Australians have historically (but especially in the last few years) massively over-extended themselves when it comes to car purchases, doing it in favour of EVs seems like an OK thing to do. (I think they should be taxing huge cars way more as well.)

            • +2

              @trawg: Well everyone is entitled to their own opinion. I think one thing that is very much overlooked in regards to EV's is that it generates self sufficiency for our countries transport needs. For ICE cars, we rely on supply chains that bring a product over from the middle east and then dispersed across the nation. Now if we stop getting oil supplies or the supply chain breaks down, a lot of people are stranded. However for the people in EV's they are powering their cars from local energy.

              Because of how good our supply chains are, people think its harder to charge a car than fill up. But the second those supply chains are disrupted, people's viewpoints will rapidly change.

              • @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.

                • @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.

        • 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

        • Because they want everyone to have a battery at home to use for V2G now it is approved. They want us to pay for everything and be the ones who provide the load when green energy isn't working.

      • 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.

        • 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

          • @cerealsmok3r:

            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.

            We aren't subsidising the purchase of ICE vehicles to the same extent.

            its already heavily subsidised with chinese EV vehicles printing them out and a global oversupply of lithium batteries

            Even more reason not to waste our taxpayers money on subsidising EVs

            ) 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

            And how does using taxpayer money to make EVs cheaper change how 'seamless' the transition is? Seems like China and Europe are promoting EVs all on their own doesn't it?

            We live in Australia, we should do what's best for Australia. We don't have access to the latest cancer treatments but giving wealthy families a discount on new cars is a priority to you?

    • +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 :/

      • +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.

    • 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.

      • +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.

        • 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.

        • If you are 40ish making less than $100k with a house paid off

          I'm not even sure that is possible. Maybe if you are 50ish and bought a home in the late 90s early 2000s

    • It's targeted at essential workers. Not the later.

  • +7

    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.

    • +3

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

      • -3

        You may be right but I was just reading this

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

        • Yikes…

        • +12

          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.

          • +1

            @[Deactivated]: 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.

            • +2

              @Grok: CEFC money is loaned to CBA. Not given. If 150 mil isn't used by loans CBA doesn't just keep the money.

            • @Grok: The government is lending money to the public through the bank. If it was a straightforward cash dump it wouldn't be provided through the Clean Energy Finance Corporation, which exists to provide finance for public works.

    • +5

      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

      • This isn't specific to labour.

        True, it is Labor instead…

        • alright you got me there

    • -5

      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.

    • +3

      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.

      • +1

        I'm not sure it is even a full front. I think CBA might even need to use some of their own balance sheet in this product.

  • +1

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

    • +4

      China says hold my beer.

      • +1

        Hold My Tsingtao

    • Base M3 RWD is under $55k

      • +3

        Drive Away Price $59,822?

        • $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.

          • @E5TOQUE: Still over 55k?

            • @serpserpserp: The poster above will be talking about the RRP, not the drive away price.

              My understanding is to get this loan it's the RRP not the drive away price? Happy to be corrected though.

              Really splitting hairs here. $4400 off a Tesla isn't terrible.

  • +4

    MG4 is probably perfect for this scheme.

  • more than 1.99%

  • 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.

    • +13

      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.

      • +1

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

  • -1

    Any deals on G63 loans? Asking for a friend

  • +1

    It also can be used for second hand EVs also.

  • +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

    • +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.

      • +6

        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.

        • +3

          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"

    • I wish they would. But all the ICE pollyanna's would cry foul of the government playing favourites with technology types.

  • +1

    "Government officials" are essential workers now?

    • +1

      so all public servants then?

    • +2

      Public servants are far from essential workers.

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

    • 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.

    • If you can find one earning less than 100k I’ll be impressed 😝

      • Hence why they've been added to the list - it is earnings under $100K OR government officials, etc - isn't it?

        And once again medical professionals - I know several that at least in Qld already get several special tax breaks e.g. working for Qld Health to buy PHEV or salary sacrifice for their mortgage etc. So unfair to everyone else. You won't find many of them under $100K that's for sure.

        I wonder how well they'd go if my sector didn't build and maintain their hospitals… yet they need special treatment and I'm apparently non-essential.

    • Wait, I think I found how government officials can be defined as essential workers.

      When you look up the definition of essential, there is the commonly known meaning, but then there is also this secondary meaning which seems to fit them better:

      essential
      /ɪˈsɛnʃl/
      adjective

      2. (of a disease) with no known external stimulus or cause; idiopathic."

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

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

    • -1

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

      Depends on what is your top tax bracket.

      • I thought everyone on ob earned 180k+

        • -1

          Then they can't get this loan…

          • @jv: They can if they are a Chris Bowen special limited edition "Essential Worker" including his own Government Officials …. cough, cough

            • +1

              @MrFrugalSpend: Oh yes, the poor GPs, vets, dentists etc who need this loan….

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

    • 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…

      • 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?

        • 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

          • @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.

          • @cerealsmok3r: its a fine line between futuristic and dystopian

      • Influencers will support whatever car company gives them a loaner car or discount to promote it…. way of the world.

        Yes I've always found it interesting that makers of EVs and hybrids, ever since they started appearing on the scene with 'things' like GM's EV1 and the Honda Insight, also felt the need to make them ugly to make a statement - rather than as similar as possible to ICE cars to actually help their mainstream adoption.

        • Influencers will support whatever car company gives them

          Not all…

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