Source: Radio New Zealand
Banks have reported more interest in loans to purchase EVs in recent weeks. RNZ / Mark Papalii
More New Zealanders have been thinking about switching to electric vehicles in recent weeks as pressure grows on fuel prices.
Banks have reported more interest in loans to purchase EVs and Meridian said it was seeing more activity on its charging network.
RNZ asked the main banks what products they offered.
ASB
Adam Boyd, executive general manager of personal banking at ASB, said ASB home loan customers could use its Better Homes Top Up loan to buy electric or hybrid vehicles, as well as for renovations to make their homes warmer, drier or more energy-efficient.
This had an interest rate of 1 percent fixed for three years for up to $80,000 and required people to have 20 percent equity in their homes.
The loan could be used to purchase a vehicle from a registered motor vehicle trader. It allowed for new or used battery electric vehicles, plug-in hybrid electric vehicles and hybrid vehicles.
“We’ve seen strong growth in demand, with a nearly 50 percent increase in Better Homes Top Up loans from February to March this year. Over the same period, visits to the Better Energy Calculator on ASB’s website increased by 46 percent.
“This can be used to find EVs similar to your current car, information on your home’s energy use, and compare costs and savings.
“We are committed to helping customers lower their carbon footprint, save on energy costs and improve their overall wellbeing – whether it’s by investing in an EV, through electrification or solar, energy efficient heating and insulation. Information about potential savings and benefits of EVs, using electric appliances and solar can be found on our website.”
BNZ
BNZ offers a Better Future home loan top up, which was also to a maximum $80,000 and 1 percent fixed for three years. It also required 20 percent equity.
For electric vehicles, plug-in hybrid electric vehicles, or hybrid electric vehicles, borrowers needed to provide a purchase agreement from a registered motor vehicle trader.
It said search and page views for the product were up 66 percent month-on-month in March and about half the people who borrowed money were doing so to purchase an electric or hybrid vehicle.
“On the business side, green loan drawdowns were up 50 percent in March compared to our monthly average – and for asset finance specifically, green business loans were up 300 percent compared to the monthly average for the previous five months.”
ANZ
ANZ said its Good Energy Home Loan allowed existing customers to borrow from $3000 up to $80,000, again at a 1 percent rate for three years. Borrowers needed to have 20 percent equity.
“The loan can be used for electric and hybrid vehicles, and EV chargers.
“Since its launch in July 2022, more than $1 billion has been lent to more than 25,000 ANZ NZ customers with the Good Energy Home Loan. The average loan amount is $39,200.
“In March, the amount borrowed for transport under the Good Energy Home Loan increased by about 67 percent. The rise in transport lending comes against a backdrop of surging petrol prices and conflict in the Middle East.”
ANZ said the number of households taking a Good Energy Home Loan in the past month was up about 40 percent on the average for the previous three months.
To apply for a loan for an EV or hybrid, people needed to be able to provide a purchase agreement from a registered motor vehicle trader.
It also offered an option for businesses.
“The ANZ Business Green Loan allows businesses to borrow amounts up to $3 million in total to invest in assets or projects that demonstrate clear environmental benefits, aligned to the Loan Market Associations Green Loan Principles. Eligible projects include renewable energy, energy efficiency, green buildings and clean transportation – including electric vehicles and eligible hybrid vehicles.”
That loan had a floating rate of 3.5 percent which was subject to change.
Kiwibank
Kiwibank offers a sustainable energy loan on a variable interest rate but said it would contribute up to $2000 over four years to help pay it off.
Westpac
Jo McGregor, head of lending and insurance product at Westpac, said it offered an interest-free Green Choices home loan top-up.
This offered up to $50,00 interest free for up to five years for EVs and chargers as well as things like rooftop solar.
People could buy EVs new or used but it had to be from a licensed motor vehicle dealer.
“We’ve lent more than $55m for EV vehicles and chargers, hybrid vehicles, and e-mopeds and e-bikes through these offerings since Greater Choices was launched in 2020 and the EV Personal Loan in 2022. Over the past month we’ve seen around twice as many applications as usual for EVs given changes in customer demand linked to the increase in fuel costs.”
It also had an option for people who did not have a home loan with it.
“Our unsecured EV Personal Loan at the competitive interest rate of 7.99 percent p.a. also enables our customers to buy a new or used electric or hybrid vehicle, e-moped or e-bike when supported by a purchase agreement or invoice where appropriate. Customers can also refinance an existing EV loan to Westpac with a settlement letter from current lender.”
Why?
Banking expert Claire Matthews. Supplied/ David Wiltshire
Banking expert Claire Matthews, from Massey University, said the decision to offer the products was more than just a marketing strategy, although that was part of it.
“Banks offer these loans as part of their contribution to society, which is both good for the brand but also part of their brand. It’s also a way for them to extend the relationship with their customer so that there is greater incentive for them to remain with the bank.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
