Are you looking to make the switch to a more eco-friendly car? Before you get too carried away making this choice and start researching green car loans, let’s take a look at a few factors you may like to keep in mind. After all, buying a green car is a bit different to buying a regular petrol car, so there are a variety of other factors to consider.
What is a green vehicle?
Let’s start off by defining what a green vehicle actually is so you’re fully aware of the different options available to you.
If you’re ready to fully jump in and purchase a totally green car, there are a range of fully electric vehicles to choose from. What makes this type of car so eco-friendly? Being fully electric means the car has no exhaust pipe and runs off a rechargeable battery as opposed to requiring fuel3. Keep in mind, this means a charging station will need to be installed at your home3.
Not keen on the idea of having to charge your car? You may be more interested in purchasing a hybrid car, which runs off both petrol and electric engines3. In a hybrid car, you have to refuel the vehicle but you don’t need to charge it like with an electric car as it switches between the two engines and charges the battery while you’re driving3. Each hybrid car is different but as an example, your car may use its electric engine while it’s idling and accelerating but switch to its petrol engine while you’re driving and maintaining speed3.
Benefits of eco-friendly vehicles
As more people begin to make the switch and buy green vehicles, you might be wondering, what are the benefits of eco-friendly cars?
The most obvious benefit is the fewer emissions green cars release into the atmosphere, particularly electric vehicles3. If you’re very conscious about the impact you are having on the environment, this is just one way you can make a difference. Green vehicles are also advantageous to you, as the buyer. For example, as electric cars function solely on an electric engine, and hybrid cars alternate between petrol and electric engines, there is the reduced need to refuel (or lack thereof in the case of electric cars)3.
In Australia, the Government recognises the importance of adopting environmentally conscious practices by offering benefits to you for buying a green car. For starters, you may be eligible for reduced stamp duty when purchasing your green vehicle. This amount can vary in each State and Territory and can also depend on the value of the vehicle3. Rebates and subsidies may also be available across some States for eligible purchasers – it’s worth doing some research to see whether you fall into this category1.
Drawbacks of green vehicles
While a green car may sound good, it’s important to familiarise yourself with their drawbacks to gain the full picture of what you would be committing to.
One major concern many have about green vehicles, mainly electric cars, is the range (mileage)1. Given that electric cars rely on the battery being charged after use, you may be hesitant to take your car out on a long drive as there is usually a limitation to how far you can travel before needing to recharge1. This differs from car to car and isn’t the same case with a hybrid vehicle so it’s worth doing your research before you decide.
Another main concern generally stems from the lack of public charging stations. Electric cars are not yet as widespread as petrol cars, so there can tend to be a limited number of charging stations available in public areas4. Some of the larger cities may have more options on offer than smaller, more regional towns4. This of course wouldn’t be a disadvantage you’d need to consider if you were happy buying a hybrid car.
Perhaps one of the biggest drawbacks of green vehicles is the upfront cost of purchasing one4. Depending on the brand, you could put quite a hefty dent in your wallet! If it was just the cost of the car to consider, you may find it more justifiable knowing there are government incentives that could help bring down the price. However, keep in mind that if you plan to buy a fully electric car, you may also need to purchase a charging station for your home, which can add more money to the already large upfront cost1.
Buying a green car
Now before you go jumping into purchasing your first green vehicle, there are a few questions you might like to ask yourself.
How far do you travel to work and are there many charging stations within your vicinity? This could impact whether you purchase an electric car as the eco-friendly benefits of it may outweigh the inconvenience of having to find somewhere to regularly charge your car as well as the reduced mileage you may get out of an electric car2. On that point, you may also like to consider whether there is room where you park your car at home for a charging station to be installed2. Don’t forget that a hybrid car is still a green option if fully electric isn’t feasible.
Can you afford a green car at this point in time? As electric and hybrid vehicles tend to cost more than standard petrol cars, it’s a good idea to factor in your financial situation and whether now is the right time for you to be purchasing a new car2.
Finally, as with any car, a green vehicle still requires maintenance to ensure it is functioning at full capacity. While electric cars are expensive upfront, certain factors, such as a lack of exhaust pipe and no need for an oil change, could make some maintenance costs cheaper1. However, electric cars can also have more expensive batteries, which is important to consider when the time comes to replace it4.
Whether you choose an electric car or a hybrid vehicle, keep in mind there are benefits and drawbacks to both. It all comes down to your personal circumstances and which green car works best for you. Queensland Country Bank has a green car loan that has the ability to offer up to an additional ten per cent to fund charging technology*.
*Terms and conditions of Queensland Country Bank’s green car loan apply. View the relevant TMD available at queenslandcountry.bank. Normal lending criteria, terms, conditions and fees apply and are available on request.
General Advice Warning: This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information in this article, you should consider the appropriateness of the information provided. In particular, you should seek independent financial advice.
Sources
1Dave Nichols, 2023, Five tips for buying an electric car, Green Cars, https://www.greencars.com/expert-insights/five-tips-for-buying-an-electric-car
2SunCommon, 2019, The SunCommon checklist for buying an electric vehicle, https://suncommon.com/checklist-for-buying-an-electric-vehicle/
3Elizabeth Barry, 2023, How to buy a green (eco-friendly) vehicle, Finder, https://www.finder.com.au/green-car-buying-guide
4Matthew Steen, 2024, How to buy the best eco-friendly car, Choice, https://www.choice.com.au/transport/cars/eco-friendly/buying-guides/green-cars