Westpac to offer interest-free lending on electric vehicles – but there’s a catch

Westpac will offer interest-free loans of up to $50,000 for five years to purchase an electric vehicle or other energy-efficient technology in a New Zealand first for banks.

However, the deal is only available to those with a Westpac home loan who meet lending and affordability criteria.

The bank is expanding its sustainable lending programme, renamed to Greater Choices, to include any EV or hybrid vehicle – new or second-hand – and EV chargers.

Sarah Hearn, Westpac NZ’s general manager of product, sustainability and marketing, said the bank is focused on helping customers reduce their carbon footprint.

“We’ve taken our popular Westpac Warm Up loan and renamed it Greater Choices to reflect the wide range of sustainable options it now includes,” she said.

“Now customers can also use the loan to purchase EVs of any kind, which could help cut their carbon footprint and save them money in the long term.

“Customers will have the flexibility to purchase either new or second-hand through a dealership, depending on what suits them.”

Westpac has also expanded the lending limit from $40,000 to $50,000 to accommodate more purchasing options.

“There are no establishment fees, and we structure the loan to be fully paid off after the five-year interest-free period,” Hearn said.

Both ANZ and ASB last year announced loans of up to $80,000 at 1 per cent interest for three years for EVs and energy efficiency-related home upgrades.

EV sales have been surging over the past couple of years as motorists look for more environmentally friendly modes of transport.

The Government’s Clean Car Discount – recently reduced from $8625 to $7015 – has also helped fuel the increase in EV owners.

A buying bulge saw 8240 new electric vehicle sales recorded in the month of June as buyers raced to beat the Government’s clean car policy changes on July 1.

And last month, EVs increased their share of new vehicle sales to 54 per cent, though it was a bigger slice of a much smaller pie as new vehicle registrations plunged.

Westpac has also added hot water heat pumps and rain water tanks to its Greater Choices offering, which already included insulation, heat pumps, double-glazing, ventilation, wood burners and solar power systems and batteries.