What are Green Car Loans?
Green cars are great in two ways. One, their emissions are low and lessens your carbon footprint, so it’s friendly to environment. Two, they are fuel efficient which means you spend less on fuel and keeps more money in your pocket. Did you know that some lenders offer lower interest rates if you choose to go green?
Going Green and lower interest rates
Green car loans is a new initiative encouraging people to drive environmentally friendly cars. If you’re in the market for a car, you’ll need to consider a car that’s right for your situation.
How often will you drive the car? Will you need a V8 when a 4-cylinder or hybrid will do? Does it need off-road capacity? If you don’t think you’ll need a high-powered gas guzzler, you may want to consider a more fuel efficient and more importantly, greener option.
Lenders, credit unions and even car insurance brokers have started offering lower interest rates to people who opt for green cars. It’s a sound financial option as you’ll be saving on repayments and fuel costs.
How do I know what’s green?
The Australian Government’s Green Vehicle guide points out how green new cars on the market are. It’s based on a five-star system. Higher the star rating, the greener the car is. This is worked out by comparing how fuel efficient a car is, what its Greenhouse Rating is (out of 10, 10 being the best) and its Air Pollution rating (out of 10).
Shop around and save
You should weigh up your options about what car is right for you. You should consult with trusted friends, family and reviews to help you choose. If you feel that your next car should be a green car, consult a financial professional to see if you can save even more with a green car loan.
This professional post is brought to you by Savvy Finance.