Want a Used EV? Here’s How to Get the Best Financing Deal in 2025

As the electric vehicle (EV) market continues to grow, used EVs are becoming more popular as a purchase alternative among eco-friendly consumers looking to reduce their carbon footprint without breaking the bank. With more budget-friendly options and a widening market set to come in 2025, it’s now time to tap into the benefits of pre-owned EVs. However, it’s easy to get the best deal on financing a used EV. Here is how you can get the best financing deal on your used electric vehicle in 2025.

Why Consider a Used EV?

The Australian second-hand EV market is booming. Sales of electric cars reached a record level in 2024, with EVs accounting for 9.5% of all new car sales (The Guardian). The boost is largely due to increasing numbers of affordable models and the increasing demand for eco-friendly, sustainable forms of transport.
Buying a pre-owned EV can be a big money-saver compared to buying brand new, especially since used prices are still relatively cheap. Websites like AmazingEV.com.au are now great places to find low-cost, second-hand electric vehicles, with plenty of makes and models to choose from. But for the best finance package on your second-hand EV, it’s not just about finding the right price.
Buying a second-hand electric vehicle can be a smart money choice if you know what to look for, especially given the price of a second-hand EV is typically much cheaper than a new one. However, it is essential to look at concerns such as battery health because it is vital to the lifespan of an electric vehicle (RACV).

Understanding Used Electric Car Finance Rates and Terms

Interest rates for used EV car finance will vary depending on several factors such as the lender, loan term, and credit score. For example, Westpac offers a fixed rate of 5.99% p.a. for eligible electric and hybrid cars (Westpac). Similarly, Bank Australia offers a fixed rate of 6.95% p.a. for used EVs (Bank Australia).
If you’re considering a used EV, it’s essential to compare rates from multiple lenders. Websites like Money.com.au and evcompare.com.au allow you to easily compare used car loan rates from various financial institutions.

Government Incentives and Rebates

Rebates and incentives play a significant part in making the price of second-hand EVs affordable for Australian consumers. Various states have implemented initiatives to encourage the buying of electric vehicles, and these can help reduce the out-of-pocket cost of owning a second-hand EV.
For example:
• Western Australia offers a $3,500 rebate for EVs costing up to $70,000 (Zecar).
• Tasmania provides interest-free loans ranging from $500 to $10,000 for home charging infrastructure (Novated Lease Australia).
These incentives, along with the lowered cost of used EVs, are a great chance for prospective buyers to save on their buy and financing.

Tips for Securing the Best Financing Deal

To ensure you’re getting the best financing deal for your used EV in 2025, here are some essential tips to consider:

• Check Eligibility for Green Car Loan Discounts: Some lenders offer a more favorable rate for eco-friendly vehicles. Confirm that your second-hand EV qualifies for these discounts.
• Compare Loan Terms: Compare shopping for the most suitable loan term within your budget. A shorter term will mean larger monthly repayments but less overall interest paid.
• Understand Fees and Charges: Always look for any hidden fees, including loan application fees, early repayment fees, or ongoing account-keeping fees.
• Factor in Additional Costs: Don’t forget to take into account the overall cost of the loan, including interest and fees. Employ an EV loan calculator in order to estimate the total cost of the loan during its tenure.
• Inspect the Vehicle Thoroughly: Ensure that the second-hand EV is in good condition, especially the battery health. The majority of used EVs carry warranties that include the battery for a specific period, which can be a clinching factor to obtain a good deal.

Conclusion

Getting the best financing offer for a used EV in 2025 involves extensive research, planning, and comparison. Utilize government rebates, loan comparison sites, and green car discounts to get the cheapest deal.
As the End of Financial Year (EOFY) approaches, it’s a great time to consider purchasing a second-hand EV. Most dealers and financiers hold EOFY sales, EOFY finance promotions, or tax benefits to boost activity prior to the close of the financial year. Either to acquire an eco-friendly car at a discounted rate or claim tax offset, now is the time to acquire one at a decent price.
At Electric Loans Australia, we walk you through the complexities of obtaining the best deal for funding your second-hand EV. We simplify the finance process, so you get the lowest rates and repayment for your second-hand electric vehicle finance.

Sources:

• The Guardian
• Westpac
• Bank Australia
• Money.com.au
• Evcompare.com.au
• Zecar
• Novated Lease Australia
• RACV