Charge Up and Roll Out: Why Electric Vehicles Are Here to Stay

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Electric vehicles are becoming more and more popular.

 

Since 2017, the number of fully electric vehicles in New Zealand has increased from less than 5,000 to more than 80,000, or almost 2 percent of the vehicle fleet.

 

In addition, hybrids have also surged in popularity.

 

But how do you go about getting a loan for one?

 

What is an electric vehicle loan?

 

You can apply for a loan to buy an electric vehicle in much the same way you would apply for a loan for any car.

 

Usually, this is against the vehicle, which may mean a lower interest rate than if the loan had no security.

 

At better finance™️, we can show you options for fixed interest rates for the term of the loan, giving you peace of mind that your payments won’t change, and tailored repayment plans.

 

better finance™️ has a focus on clarity, certainty, and quick approvals for car loans, to get you on the road more quickly.

 

Why choose an electric vehicle loan?

 

There are lots of reasons why people might want to buy an electric vehicle.

 

Sometimes, it’s for environmental reasons – if you are driving an EV, you don’t have to worry about the emissions your car might be putting into the atmosphere.

 

Other people like the idea of the potential for reduced running costs – it has been estimated that charging your EV overnight at home is like buying petrol at $1.60 a litre.

 

At better finance™️, we can show you flexible loan options that can help you make the purchase work for you.

 

Eligibility criteria

 

There are a few key factors that lenders might consider when they are looking at your EV loan application.

 

Income

 

Lenders will want to see that you have sufficient income to cover the repayments that will be required for your loan. Lenders will only approve loans that borrowers demonstrate they can afford. It is important that your income is reliable and stable for the term of your loan.

 

Credit score

 

A good credit score will help your application. There are ways that you can improve your credit score, such as making sure every bill payment is made on time and not making too many applications for credit.

 

Security

 

If you’re buying a vehicle, the lender will usually take that as security on your loan. That means that if you default and stop making payments, the lender can take the car and sell it to recover what is owed.

 

At better finance™️, we can guide you through the relevant lending criteria and help you determine what might be affordable.

 

The application process

 

Applying for a loan may be simpler than you think.

 

Online application

 

better finance™️ has a simple and quick process to allow you to submit your loan requirements, contact details and other required information, including evidence of your income and spending.

 

Personal consultation

 

Then, a better finance™️ adviser will get in touch to talk to you about your loan needs and answer any queries you may have.

 

Approval and agreement

 

We’ll help you through the application process, and then help you review your loan terms and sign the relevant agreements. You’ll usually receive the funds within 24 hours or on the same day, provided all conditions are met.

 

better finance™️ has a customer-centric process that makes the application experience smooth, keeping you informed each step of the way.

 

Paying back your loan

 

From there, it will be over to you to repay your loan.

 

Rates and terms: You’ll usually have a fixed interest rate, set at the start of your loan. This makes it easier to budget for your repayments each time. You’ll have agreed to pay the loan back over a set period of time, usually a number of years. If you need to change this while the loan is in place, we can help you look at your options.

 

The term you choose can make a difference to the overall cost of your loan. For example, better finance™️, loan repayment calculator shows a $10,000 loan over three years at 9.95 percent would cost $339 a month and include $1689 in interest. Extending the term to five years would lower repayments to $224 a month but increase the interest paid to $2871.

 

It’s important to understand the fees that might be involved with the loan application and any ongoing charges. The team at better finance™️ can help you with this.

 

Tips for securing the right EV loan

 

Here are four tips for success.

 

  • Improve your credit score before you apply: Generally, the better your credit score, the easier an application may be. You may also be able to access better interest rates.

  • Use calculators to see what the loan may look like in action: You can use calculators such as better finance™️’s to get a sense of what your repayments might be and how they would fit into your budget.

  • Understand your loan terms and conditions: You should always understand your loan agreement. Our team is here to help you if you have any questions.

  • Seek advice: better finance™️’s financial advisers are experts when it comes to personal loans and can answer any questions you may have.