MONEYME launches discounted EV loans

MONEYME has launched a 1 per cent discounted interest rate on loans for electric vehicles. According to the non-bank lender, the discounted loan is expected to support Autopay’s growth due to rising demand for electric vehicles (EVs).

Reportedly, the number of Autopay loans for EVs rose from less than 1 per cent of all Autopay loans in February 2022 to almost 5 per cent in February.

MONEYME stated the discounted EV loan followed the federal government’s National Electric Vehicle Strategy transition to a decarbonised transport system, which aims to increase the uptake of EVs by making them affordable and accessible.

According to the non-bank lender, the discounted rate aims to “encourage aspiring or on-the-fence EV customers to view EVs as an affordable option on top of being more environmentally friendly, while also increasing its originations and book performance”.

Chief executive and managing director of MONEYME, Clayton Howes, said: “The growing supply of, and demand for, electric vehicles present an exciting market opportunity that aligns perfectly with our strategy and core values, making the introduction of a discounted rate for EV loans a no-brainer for us.

“We have noticed a clear trend among our Autopay customers of increasingly opting for electric vehicles.

“These loans exhibit promising financial characteristics, backed by high-value assets and benefiting from strong customer repayment behaviour. As a result, they make solid additions to our loan book, with significantly lower loss rates.

“As part of our commitment to environmental and social impact, we aim to lead the industry in driving positive change. Electric vehicles play a crucial role in Australia’s transition away from fossil fuels, and by offering this discount, we are incentivising our customers to make the switch to go green.”

Firstmac green loan investment

Non-bank lender Firstmac recently received a $40 million investment from the Clean Energy Finance Corporation (CEFC) in order to provide discounted finance for its retail green car loan.

The investment was expected to finance a further 900 electric vehicles with the discounted finance aiming to save customers between approximately $1,400 and $2,500, depending on loan size and length.

The investment aimed to allow Firstmac customers to benefit from a 0.5 per cent discount for the life of their loan with another 0.5 per cent discount given by the non-bank lender.

[RELATED: Firstmac receives $40m green loan investment]

Written by Reporter

Last Updated: 09 June 2023

Published: 13 June 2023