EV loans NZ

Electric vehicle sales in NZ are booming. Some lenders are now offering discounted interest on EV loans to entice the many Kiwis shopping for an electric car.

Vehicle Loans can help you find the best EV loan rates among multiple lenders. We’ll also set up your loan to capitalise on the Clear Car Discount rebate so you maximise your savings. Call us on 0800 651 480 for a quick quote, or read on for a complete guide to EV loans in NZ.

What is an EV loan?

An EV loan is car finance specifically designed for the purchase of an electric vehicle. Some lenders are offering these loans with discounted rates for EV drivers. But apart from that an EV loan works in exactly the same way as a standard car loan.

That means a lender provides funds for you to buy a vehicle, and the car is then used by the lender as security for the loan. You’ll repay the loan plus interest and fees over a term of 1-5 years.

An aspect of EV loans that’s unique to NZ is being able to reduce your finance amount by incorporating the rebate of up to $7,015 you can get through the government’s Clean Car Discount (if you’re eligible). We’ll explain how this works below.

What are the interest rates on EV loans?

Interest rates on electric vehicle car loans generally come with a 1% discount on standard car loan rates. But while it can be tempting to be drawn in by a special EV loan offer, it’s still important to shop around.

For example, even if a lender is advertising a discounted rate, it may still be more expensive than another lender’s standard car loan rates. As with any car loan, your credit score could also impact what rate you’re ultimately offered.

EV loan rates also vary depending on whether you get finance through a dealer or a loan from a specialist lender. In our experience, we are often able to find rates for customers with a 3-4% discount on what the dealer has quoted. Getting the finance separately saves these customers thousands.

Example: EV loan rates compared to alternatives

This is a hypothetical example and the actual rates available may vary. Comparison based on a five-year loan term and does not factor in finance fees.

How to apply for an EV loan in NZ

Step 1: We’ll ask you some simple questions about your situation and the car you are planning to buy.

Step 2: We’ll present you with your best quotes from different lenders we work with This will include the interest rates and your regular repayments.

Step 3: We submit an application for an EV loan with your preferred lender (this only takes around 10 minutes).

Step 4: If the lender is happy, generally you can get conditional approval almost instantly.

Step 5: We’ll collect some documents from you to submit to the lender for full loan approval. This is generally your driver licence, plus your two most recent payslips and bank statements.

Step 6: With full approval secured, your loan funds will be released. This usually happens within 1-2 business days of your initial application but it can be the same day in some cases.

To get started, you can request an EV loan quote online or you can call us free on 0800 651 480. One of our experienced consultants will run through your application from start to finish.

How is the Clean Car Discount applied to your EV loan?

Most people we help with an electric vehicle car loan choose to use their Clean Car Discount rebate from the government to reduce their finance amount. This brings down their regular repayments and the overall amount of interest they’ll be paying on their loan.

Of course, you can always choose to keep the rabate and continue with the full loan amount. The choice is yours.

Applying the Clear Car Discount to your EV loan is simple. Vehicle Loans will calculate the rebate amount you’re eligible for based on the vehicle you’re buying. We’ll then work with the lender to set up your loan contract to include a single one-off payment (balloon payment) equal to the rebate in the second month of the loan term.

This gives you time to apply for the rebate and once it’s paid to you, you simply transfer the funds to the loan account.

EV loan with Clean Car Discount rebate applied

Calculation assumes a 5-year loan term and interest rate of 9.5% p.a. Rebate example based on new zero-emission vehicle first registered after 1 July 2023.

Am I eligible for the Clean Car Discount?

You’ll be eligible for the NZ government’s Clean Car Discount rebate if the EV you’re buying meets these criteria:

• It's being registered in New Zealand for the first time.
• It has a safety rating of 3 stars or more on the Rightcar website at the time of registration.
• It must have been bought for less than $80,000 NZD, including GST and on-road costs. The trade in value of your old car can be part of the sale but it will not affect the purchase price the car for for the purpose of calculating eligibility for the rebate.

EV loans FAQ

Can I get an EV loan for a second hand electric car?

Yes, most lenders offer EV loans for both new and used electric vehicles. Used vehicles can generally be financed with a car loan as long as the vehicle will be less than 20 years old when the loan term ends. Given EVs are a relatively new part of the market, that means more or less every EV in NZ is eligible.

Where can I apply for an electric vehicle car loan?

You can apply for an EV loan through a bank, with the car dealer or through a car finance broker like Vehicle Loans. Applying through a broker means you can easily source finance quotes from multiple lenders. Your broker will also help you with the application process and advise you on the Clean Car Discount rebate.

Who can apply for an EV loan in New Zealand?

You can apply for an EV loan in NZ if you are over 18, an NZ citizen or permanent resident and have at least a learner driver licence. You’ll also need to be purchasing an eligible vehicle. Usually that means a battery electric vehicle (BEV) or a plug-in hybrid electric vehicle.

You’ll also need to demonstrate you can afford the repayments on the loan by providing proof of your income, expenses, other debts and assets you own.

Can I use an EV loan to buy an electric vehicle privately?

Yes, most lenders offer EV loans either for a private or dealer sale. The process of getting the finance is similar no matter where you buy the car.

Can I apply for an EV loan if I have bad credit?

Yes you can. A lot of lenders will still give an EV loan to borrowers who do not have a perfect credit history as long as they can demonstrate that they can comfortably afford the repayments.

If you do need a bad credit car loan, you can expect to pay a higher interest rate and you may not be able to borrow as much. A lot of bad credit borrowers we help, contribute a deposit towards the vehicle purchase to reduce risk for the lender.

What are the fees and other costs on an EV loan?

Some EV loans offer discounted fees in addition to the discounted interest rate. It’s possible to find EV loans in NZ with $0 application and no regular fees but fees vary by lender. Vehicle Loans will include any fees charged by the lenders when providing you with EV loan quotes.

Can I pay off my EV loan early?

Yes you can. Most lenders will allow you to repay the loan early, whether that’s by increasing your regular repayment amount or contributing a lump sum. Just be aware that some lenders charge extra repayment fees and penalise early repayment.

What protection is available for my EV and loan through a broker?

Buying an EV in NZ is a major up-front investment. When you apply for an EV loan through Vehicle Loans, we'll offer additional protection suitable for your vehicle:

• Mechanical warranty with Mechanical Breakdown Insurance - Mechanical Breakdown Insurance covers the cost of repairing mechanical or electrical parts (e.g. EV battery) as a result of a sudden and unforeseen failure and breakdown that occurs during normal use in New Zealand.
• Guaranteed asset protection - Guaranteed Asset Protection Insurance protects you against losses that may occur when your vehicle is declared a total loss, and as a result the total loss settlement amount paid by your vehicle insurer is less than the outstanding amount you owe to your financier for your vehicle loan.
• Payment protection - Payment Protection Insurance protects your loan repayments if you suffer an insured event - such as redundancy, severe illness, or disability.

When you express interest in purchasing a vehicle and applying for car finance through Vehicle Loans, our brokers will discuss the most suitable options available to you.

What are the most popular EVs and PHEVs in NZ in 2023?

Sales of new passenger battery electric and plug-in hybrid electric vehicles were 196% higher in June 2023 than the same time the previous year, according to the Motor Industry Association.

In 2023, the top five best selling EVs in NZ are:

• Tesla Model Y
• BYD Atto 3
• MG ZS EV
• Tesla Model 3
• Kia EV6

The top 5 best selling PHEVs are:

• Mitsubishi Eclipse Cross
• Mitsubishi Outlander
• Kia Sorento
• Ford Escape
• Kia Niro

Source: Motor Industry Association based on YTD sales to June 2023

How much do EVs cost in NZ?

Electric Vehicles are still generally more expensive to purchase in NZ than internal combustion engine vehicles. The trade off is they are typically considerably cheaper to run. The Clean Car Discount from the NZ government can also help bring down the cost of an EV by up to $7,015.

Looking at the cost of popular models, pricing for the best-selling Tesla Model Y starts at just under $70,000 NZD. On the cheaper end of the scale, the MG ZS is another top seller starting from around $50,000.

What’s better, an EV or PHEV?

From the point of view of getting an EV loan, there is no difference between getting an EV or a PHEV. It’s more a case of which kind of vehicle best suits your driving habits.

According to the NZ government’s Gen Less buying guide, a battery EV is best if you:

• Mostly travel within battery range
• Can charge overnight at home or at work
• Have off-street parking and access to a plug
• Want an economical second car
• Sit in traffic a lot
• Want low running costs

A PHEV is best if you:

• Often need to drive beyond the battery range
• Need the car for a mix of long and short trips
• Can charge overnight at home or at work
• Have off-street parking and access to a plug
• Sit in traffic a lot



How do I apply for an EV loan with Vehicle Loans?




You can apply fro an EV loan by contacting our team over the phone or you can apply online.




If you’d like to speak to one of our team about your situation, you can call us free on 0800 651 480, and one of our experienced brokers will run through your application and finance solutions available to you.