Top tips to consider before you buy an EV or hybrid car

Car Tips
4
min read
Contents

Electric vehicles (EVs) are becoming increasingly popular in the Australian market, particularly as more and more options become available. We’ve seen a steady rise in interest in EVs over the last few months. In particular, we saw a massive 27% rise in enquiries for hybrid and electric vehicles on the CarClarity platform in October, and we’re expecting this demand to keep on rising in the months ahead.

Leading the pack as the most enquired after EV on our platform is Tesla’s Model 3, making up a whopping 26% of all EV enquiries. The Toyota RAV4 Hybrid comes in a close second, boasting 20% of all EV enquiries. Other popular models include the ToyotaPrius Hybrid, Toyota Corolla Hybrid, and Toyota Kluger Hybrid.

But popularity and statistics aside, is an EV the right choice for you? What factors do you need to take into consideration when deciding whether to go electric… or not?

If you get stuck, remember our friendly car experts are always around to help answer questions and guide you in the right direction.

What’s the difference between EV loans and regular car loans?

At the core of it, getting finance for a hybrid or electric vehicle is much the same as for a regular petrol car – with some potential added perks.

When approaching finance for any car, you should always start by factoring in the corner stone considerations of budget, lifestyle, and intended use. This will allow you to select the right type of vehicle for your needs, without overextending your budget. It’s important to consider not just your overall car budget, but also your capacity for repayments by taking your monthly cashflow into consideration. This way, you can select the right vehicle with an achievable term for repayments.

Above all else, remember, there’s no need to rush. Taking the time to learn about all the options available will help you make a better-informed decision.

Can I get a discounted loan for EVs?

Now onto the perks – some lenders will offer discounted loan rates for electric vehicles, so taking the time to look into all the available finance options will pay off in the long run. For example, at​​ CarClarity, we work with several lenders who offer discounted rates on electric vehicles, and we can offer up to 0.7% off the loan rate for EV financing. Simply submit a no-obligation enquiry to see what your top car loan options are in 60 seconds. Our car loan specialists can answer any questions you may have regarding your specific situation.

What type of EV is best?

There are four main categories of EVs – hybrid electric vehicles, plug-in hybrid electric vehicles, battery electric vehicles and fuel cell electric vehicles.Which one will be best suited to you will depend heavily on your situation and preferences – remember those finance cornerstone considerations we spoke about.

Each category of EV (as well as petrol-based vehicles) will have different costs associated with running them, as well as different maintenance needs. Therefore, doing your homework to get to know the different types of vehicles available is critical to selecting the right option and finding the right loan faster.

What are the pros and cons of an EV vs. a petrol car?

It’s important that you learn about how charging different types of electric vehicles work, as well as understand all the ins and outs of what additional servicing and maintenance may be required on a regular basis.

Generally speaking, EVs have lower running costs and less ongoing servicing and maintenance requirements, which can help you save money in the long run.

Thanks to having fewer moving parts prone to wear and tear, electric vehicles are usually cheaper to service and maintain versus petrol cars.

For instance, EVs have a longer battery life, which means lower battery replacement costs long term. Pure electric vehicles (not hybrids) also do not require oil changes or the engine mechanical repairs that petrol cars do.

What do I need to consider before buying an EV?

However, servicing for electric cars may be harder to find, as not all garages and mechanics may be skilled in EV servicing – make sure your servicing centre has staff that are properly trained in EV maintenance.

It’s also important to consider the availability of charging stations, as they are not yet as commonly available as petrol stations, although this is constantly improving. For this reason, it’s important to pre-plan and factor in logistics for long distance trips and remain mindful of your charge.

Overall, the biggest thing to keep in mind is that while EVs and hybrid vehicles may cost more upfront, they’re a great long-term investment that will save you money in the long run – and they’re better for the environment!

Still not sure? Our car experts (and self-professed car enthusiasts) are always available to answer any questions you may have and provide advice on the type of vehicle that may be the most suitable for your lifestyle and budget the best – they’re just a phone call away!

Zaheer Jappie

Zaheer is the Founder and CEO of CarClarity, Australia’s first true car loan platform with an easy online application process. Zaheer has over 14 years of experience in senior management and executive positions within the financial space. He founded CarClarity in 2019 to address the unfair gap and lack of transparency he observed in the car financing market, where traditional lenders were commonly placing profit margins over customer outcomes. Zaheer is also an avid car enthusiast who has owned 10 cars in as many years. His passion for cars combined with his industry knowledge provides a unique insight into the car buying and financing space.

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