Business EV loan
Buying an electric vehicle can be a smart financial decision, particularly due to the lower running costs compared to petrol and maintenance expenses, as well as government incentives, like rebates and stamp duty exemptions. However, EV cars typically come with higher upfront costs and you may rely on public charging infrastructures that aren't always readily available, which can impact convenience and cost-efficiency.
Interest rates vary based on your credit profile and lender you go with, but typically start from 6.99%.
It is possible, as some lenders offer packages that cover both the vehicles and charging stations.
Yes, you can typically refinance your business car loan to purchase an EV. Be sure to check your current agreement for any early termination fees.
Leasing an EV or hybrid through your business can certainly be worth it, especially in terms of tax benefits and initial investment required. If you're unsure which route to go down, have a read of our business vehicle lease vs loan guide.
Hybrid cars can qualify for certain tax benefits, like partial or full FBT and state-based incentives. To know exactly what applies, have a chat with your accountant.
Rising fuel costs just increase expenses, and can make your cash flow harder to predict and manage:
- Higher day-to-day operating costs eating into your margins
- Less cash available for wages, inventory, or growth
- More pressure on pricing, especially if you can’t pass costs on to customers straight away
The tricky part is volatility. Fuel prices can change week to week, making it harder to forecast expenses and plan ahead. For many businesses, that’s why electric vehicles are becoming more appealing. Running costs are typically lower and more predictable which can help stabilise cash flow over time. And with financing options available, you don’t need to tie up large amounts of upfront capital to make the switch.
