Westpac partners with Plenti to help grow adoption of electric vehicles in Australia

Westpac has announced a new funding deal with consumer fintech lender Plenti to help make the transition to electric vehicle ownership easier for Australians. 

The major bank has completed a $250 million structured debt facility to fund electric vehicles and related features such as recharge equipment for Plenti.

The debt facility has been structured to provide efficient funding for electric vehicles, in support of Plenti’s ambition to offer the most competitive electric vehicle finance in the Australian retail auto market.

Craig Parker, executive director of structured finance at Westpac Institutional Bank, said: “The electric vehicle market in Australia is reaching a pivotal time, and we are proud to partner with Plenti to develop a dedicated green Auto Finance program which focuses on growing the adoption of electric vehicles in Australia.

“Westpac is committed to supporting our clients in responding to the challenges of climate change through innovative and sustainable financing solutions, and this transaction is another example of the bank’s commitment to be at the forefront of sustainable finance in Australia.”

Daniel Foggo, CEO of Plenti, said: “We’re delighted to have Westpac’s support as we scale our auto lending business and build a leading position in electric vehicle finance.

“Fast, flexible and good value finance has an important role to play in making the transition to electric vehicle ownership as easy as possible for Australian consumers.”

Earlier this month, the Federal Chamber of Automotive Industries (FCAI) released sales figures for the 2021 calendar year, which revealed that electric vehicles saw an increase in sales of 191.1 per cent on 2020 figures.

FCAI chief executive Tony Weber said: “While this number may appear impressive, it is important to note that overall electric vehicle sales as reported through VFACTS account for just 0.49 per cent of the total market share.

“In this context, we must recognise the policy objective should be to lower our CO2 emissions rather than meeting sales targets of particular types of technology.

“The FCAI maintains the need for national leadership in the form of a technology agnostic and achievable emissions reduction target.”

Many lenders offer green car loans with more competitive interest rates than standard car loans to incentivise car buyers considering low emissions vehicles.

According to RateCity’s Car Loans Leaderboard, here are some of the lowest green car loan rates currently on offer:

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