Electric vehicle loans
Discover the best finance options for funding the purchase of an EV or hybrid in New Zealand in our guide.
Updated: 23 October 2024
The breakdown
- A handful of New Zealand lenders offer special interest rates on loans that can be used to purchase an EV.
- Finance options include straightforward EV loans (from 7.99%) and even 0% interest green energy home loan top-ups can can be used for an EV.
- An EV loan can be used to purchase an EV, a hybrid, an e-bike, or a home charging station.
Author: Kevin McHugh, Head of Publishing at Banked.
What is an EV loan?
An electric vehicle (EV) loan involves borrowing a lump sum of money to purchase a fully electric or hybrid vehicle, such as a Nissan Leaf, a BMW i3, or any car in the Tesla series.
That’s the same as a regular car loan then, right? Not necessarily.
While you can use a loan from any car finance company to purchase an EV, some lenders offer loans that can only be used to buy an electric vehicle — and they have a lower interest rate and involve special conditions.
In order to successfully apply for one of these loans, you must meet specific criteria laid out by the lender — the most obvious being that you can only use the loan to purchase an electric vehicle of some kind (such as a car, scooter, or e-bike).
Will I get a better rate with an EV loan?
A handful of lenders in New Zealand do offer loans with lower interest rates for the purchase of an electric vehicle. For example, Westpac currently offers a standard personal loan with an interest rate of 13.9%, but it also offers a special EV loan which has a much lower rate of 7.99%.
But this type of loan is not common among lenders. Plus, for those that do offer EV loans, the conditions under which they can be secured can vary quite a bit from lender to lender.
EV finance options compared
As imports of electric vehicles to New Zealand continue to surge, more lenders are offering financial products tailored to meet the need. But not all of these products are straightforward loans.
There are essentially 2 types of EV finance in New Zealand currently.
- A standard car loan
- A low-rate home loan top-up.
We explain all of your options for each below.
A car loan
There are a number of lenders currently advertising ‘EV loans’. But in most cases, these loans are not in any way specific or better for the purchase of an EV.
This is not a problem if one of these lenders offers you the best rate and terms for your car purchase, but don’t make the assumption you will be getting the best rate simply because a loan has the EV label.
Only two lenders currently offers a special rate for EV loans — Westpac and Heartland Bank. AA Money does advertise an EV loan but its starting interest rate of 9.95% and other loan terms apply equally to loans for non-electric vehicles.
Westpac’s EV Loan
The EV Loan from Westpac offers you a way to borrow money for a new or used electric or hybrid car, e-moped or e-bike, providing a special interest rate of 7.99%.
Our research shows that this is currently the lowest advertised interest rate for an EV loan on the market.
If accepted, the loan allows you to borrow up to $50,000, or possibly even more, depending on your personal circumstances. The loan is unsecured and there are no fees for establishing the loan, for making a lump sum payment, or for paying the loan off early. (Check out our guide to the best unsecured personal loans).
Available loan terms: 6 months to 5 years
Conditions:
- You must be 18 or older.
- You must be either a New Zealand citizen or a permanent resident.
- The loan must be used to purchase an electric vehicle or bike.
Learn more about Westpac’s EV loan on its website.
Heartland Bank’s Electric Vehicle loan
Heartland Bank has its own special rate for those looking for an EV loan. While the bank’s standard car loan rate ranges from 8.45% to 15.45%, its option for EVs is a more wallet-friendly 8.45% to 9.45%.
Heartland Bank has a higher maximum loan amount than Westpac at $200,000 (the minimum amount is $5,000). However, its EV loan also includes an establishment fee of $249, unlike Westpac’s.
The EV loan from Heartland Bank is secured against the vehicle you purchase. This means there is a fee of $7.39 for logging in on the Personal Property Securities Register (PPSR). The loan also involves an early repayment fee of $7.00
Available loan terms: 6 months to 5 years
Conditions:
- You must be 18 or older.
- You must have a full or restricted driver’s license
- The loan must be used to purchase an electric (or plugin hybrid) vehicle or bike.
- Other conditions do apply but the bank will assess each applicant and their personal circumstances on a case-by-case basis.
Learn about its EV loan on the Heartland Bank website.
Alternative car loans
While only Westpac and Heartland Bank offer the only specialist EV loans in New Zealand currently, you can still fund the purchase of your next electric vehicle with a more general car loan.
Compare your options in our table below or visit our comprehensive guide to the best car loans.
| Lender | Interest rate (p.a.) | Loan types | Terms | Establishment fee | |
|---|---|---|---|---|---|
Finly car loans
|
From 9.30% | Secured | 1 to 5 years | $235 (plus a $2 monthly fee) | |
Nectar
|
11.95% - 29.95% | Unsecured | 6 months to 5 years | $240 | Nectar review |
CarFinance2U
|
From 8.95% | Secured and unsecured | 1 to 8 years | From $295 to $995 | |
MTF Finance
|
10.99% to 24.05% | Secured and unsecured | 3 months to 5 years | Up to $380 | |
The Co-operative Bank
|
9.95% to 19.99% | Unsecured | 6 months to 5 years | $155 | |
ANZ
|
13.90% | Unsecured | 6 months to 7 years | $0 | |
Harmoney
|
9.89% to 24.99% | Secured and unsecured | 3 to 7 years | $150 |
A mortgage top-up loan
While they are not available to everyone, some banks do offer low-rate home loan top-ups that can be used exclusively to improve the energy efficiency of your home or vehicle.
The eligibility criteria is a little different with each of the lenders we look at here, but having a mortgage with the bank in question is a necessary requirement for all.
Westpac’s Greater Choices home loan top-up
Not content with having one of the most compelling specialist EV loans on the market (see above), in late August 2023 Westpac announced its new 0% interest home loan product, Greater Choices.
The new product lets current Westpac home loan customers borrow up to $50,000 interest free for five years. The loan can be used for a range of energy-efficient home improvements (such as a heat pump, a solar energy system, and so on) but it can also be used for the purchase of:
- a fully electric vehicle
- a hybrid vehicle
- an electric vehicle charger.
There is also no establishment fee making it a very strong offer overall.
Note that if you take out a Greater Choices home loan and you’re not able to pay it off within the five-year period, a default interest rate of 5% will apply to the remaining amount.
It’s possible for existing customers to take out more than one Greater Choices home loan, but the total amount cannot exceed $50,000 overall.
Conditions:
- You must be a Westpac home loan customer.
- You must have at least 20% equity in your home.
- For an EV or hybrid, you just have a purchase agreement from a registered motor vehicle trader. You cannot use the loan to purchase a vehicle from a private seller.
Learn more about the Greater Choices home loan top-up on the Westpac website.
ANZ’s Good Energy Home Loan top-up
If you have a mortgage with ANZ, you can apply for its Good Energy Home Loan top-up.
With an interest rate of 1%, the top-up loan lets you access up to $80,000 which can be used for ‘good energy upgrades’. Among those eligible purposes for which the loan can be used are EVs and related equipment, including:
- new or used electric or hybrid vehicles
- electric vehicle chargers
- new or used electric bikes (ebikes).
While the Good Energy Home Loan top-up requires a mortgage with ANZ, it works like a separate loan and will be paid off in separate payments. This means customers can pay off the top-up loan well before their home loan and minimise interest.
The rate only applies to the top-up for an initial 3-year fixed-term period. When that time expires, you can fix the rate at one of ANZ’s special fixed interest rates (if you’re eligible) or its standard fixed interest rates. Alternatively, you can choose for the loan to move to the bank’s floating rate.
The loan top-up has a minimum amount of $3,000 and there is no application fee involved.
Conditions:
- You must already have a mortgage with ANZ.
- You must have at least 20% equity in your home.
- For an EV or hybrid, you just have a purchase agreement from a registered motor vehicle trader. You cannot use the loan to purchase an EV from a private seller.
- For an e-bike, you must have a quote from the company you plan to purchase the bike from.
Learn more about ANZ’s Good Energy Home Loan top-up on its website.
ASB’s Better Homes top-up loan
Very similar to ANZ’s offering is ASB’s Better Homes top-up loan. Again, to take advantage of the offer you must already have your mortgage with ASB.
ASB’s Better Homes top-up loan of up to $80,000 also has an interest rate of 1% and it can be used to purchase a number of more energy-efficient things. This includes better insulation or double glazing, and of course, an electric or hybrid vehicle. You can also use the loan to buy an EV charger.
The rate of 1% is available for the first 3 years of the loan. From that point it will move to ASB’s variable (floating) rate, or you can choose to fix it to one of the bank’s fixed rate offerings.
ASB’s Better Homes top-up loan does involve an establishment fee of $99.
Conditions:
- You must already be an ASB home loan customer.
- You must have at least 20% equity for an owner-occupied property, or 40% an investment property.
- You must provide a purchase agreement from the company you’re buying the EV or hybrid vehicle from.
Visit ASB’s website to learn more about its Better Homes top-up loan.
BNZ’s Green Home Loan top-up
Not to be outdone by the competition, BNZ also offers its customers a 1% home loan top-up that can be used to purchase an EV. The terms and conditions of the Green Home Loan top-up are very similar to ANZ’s and ASB’s offerings.
You can borrow up to $80,000 for the purchase of an electric vehicle (or plug-in hybrid) or an eligible energy-saving home improvement. A minimum loan amount of $5,000 applies.
The interest rate of 1% for the first 3 years of the loan. At that point you can choose to refix the loan at the bank’s standard fixed-rate or BNZ’s floating rate will apply.
BNZ charges a fee of $100 for processing the top-up loan.
Conditions:
- You must already have a mortgage with BNZ.
- You must provide a purchase agreement from a registered motor vehicle trader selling the EV.
- You must have at least 20% equity in your home.
- For an e-bike, you must provide a quote from the business selling the vehicle.
Learn more about Green Home Loan top-up on the BNZ website.
Electric vehicle finance FAQs
Can I buy a hybrid vehicle with an EV loan?
An EV loan can be used to purchase either a fully electric car or a hybrid. In most cases, an EV loan can also be used to purchase other types of electric vehicles, such as electric bikes.
Visit the Rightcar website for more information on what vehicles are classified as either fully electric or hybrid.
What was the Clean Car Discount Scheme?
In a bid to lower carbon emissions, the New Zealand government introduced new rules on 1 April 2022 that charges were imposed on high-emitting vehicles, while those with low emissions would be eligible for rebates. This system of rebates is the Clean Car Discount Scheme.
The rebate ranges from $3,450 to $8,625, depending on the vehicle. Unfortunately, the scheme was repealed an has not been available since 31 December 2023.
Do I need specialist insurance for an electric vehicle?
No — an electric vehicle can be covered by the same kind of policy as a petrol or diesel vehicle.
However, it can take a little time for insurers to assess how to insure newly released models. For example, when Teslas were first released in New Zealand only a handful of insurers would cover the range. Thankfully that has now changed and the large majority of insurers offer cover. Learn more in our Tesla insurance guide.
