EV finance: frequently asked questions
Buying an electric vehicle is a big decision, and the finance side can throw up plenty of questions. Here are answers to the ones we hear most often. If yours is not covered here, get in touch and a broker can help.
What is EV finance?
EV finance is a way to spread the cost of an electric vehicle over time rather than paying the full amount upfront. You borrow a set amount and make regular repayments over an agreed term. The finance can be structured in different ways depending on whether you are buying for personal or business use.
How much can I borrow for an EV?
That depends on your income, expenses, credit history, and the value of the vehicle. There is no single answer because every situation is different. A broker can give you a clearer picture once they understand your circumstances. Start an enquiry and find out what is available to you.
Can I get EV finance with bad credit?
Possibly. Having marks on your credit file does not automatically disqualify you, but it does narrow the field. Some lenders on our broker's panel specialise in non-standard credit situations. It is worth having the conversation, a broker can tell you where you stand.
What deposit do I need for EV finance?
Not all lenders require a deposit. Some will finance 100% of the purchase price, while others may want 10% to 20% upfront. A larger deposit generally means lower repayments and potentially better rates. Your broker can advise based on your situation and the lenders available.
How long does approval take?
It varies. Straightforward applications with clean credit and clear documentation can be turned around in a few business days. More complex situations, or applications directed to lenders with smaller teams who may offer better terms, can take longer. Your broker will give you a realistic timeframe from the start. We do not promise instant approvals because that is not how responsible finance broking works.
Can I finance a used EV?
Yes. Used electric vehicles are financeable, though lender appetite varies depending on the age, make, model, and battery condition of the vehicle. A broker will know which lenders are comfortable with used EVs and can steer you in the right direction.
What is a chattel mortgage?
A chattel mortgage is a business finance structure where you take ownership of the vehicle from day one and make regular repayments. The vehicle acts as security for the loan. It is popular with business buyers because of potential tax benefits, including the ability to claim GST, depreciation, and interest on repayments. Always confirm the tax implications with your accountant.
What is a finance lease?
A finance lease is a structure where the lender owns the vehicle and leases it to you. You make regular payments, and at the end of the term you can pay a residual to take ownership, refinance, or hand the vehicle back. Lease payments are generally tax-deductible as a business expense. It suits businesses that prefer to keep assets off their balance sheet.
Do I need an ABN to get EV finance?
No. If you are buying an EV for personal use, consumer finance options are available without an ABN. If you are buying through a business, you will need an ABN, and you will have access to business finance structures like chattel mortgage and finance lease, which carry different tax considerations.
What are the repayment terms available?
Loan terms typically range from one to seven years, depending on the lender and the finance structure. Shorter terms mean higher repayments but less interest paid overall. Longer terms reduce repayments but cost more in total. Your broker will help you find the right balance for your cash flow.
Can I pay off my EV finance early?
In most cases, yes. However, some loan agreements include early repayment fees. Check the terms of your specific agreement, or ask your broker to explain the early payout process before you sign.
What happens at the end of the finance term?
That depends on the structure. With a consumer loan or chattel mortgage, you own the vehicle outright once all repayments (including any balloon payment) are made. With a finance lease, you typically have the option to pay a residual and take ownership, refinance, or return the vehicle.
Still have questions?
The easiest way to get answers specific to your situation is to talk to a broker. No obligation, no pressure.