Commonwealth Bank of Australia (CBA) today announced that the bank is a preferred finance provider for Tesla Australia, helping customers looking to purchase a Tesla and make the switch to an electric vehicle (EV).
As part of the agreement, CBA’s business and retail customers will be able to access financing through the bank directly from the Tesla website, improving the customer experience and expanding financing options for customers.
Tesla customers can apply for a CBA secured personal loan with a fixed, low rate of 5.49%p.a. (Comparison rate 6.92% p.a.*). This lower interest rate is available to customers who choose to finance eligible sustainable purchases including electric and hybrid vehicles that meet certain criteria, and use their vehicle as security.2
CBA’s General Manager Personal Lending, Joel Larsen, said: “Tesla has proven to be one of the preeminent and hallmark brands that has propelled the awareness and uptake of EV adoption in Australia. Through this latest announcement we can help more customers realise the benefits of electric vehicles by making finance more affordable.”
Since October 2022, the bank has helped retail customers purchase more than $50 million of eligible sustainable products through its personal loans with lower, upfront interest rates.2
The appeal of EVs is supported by research which shows 64 per cent of customers would consider buying an electric or hybrid car if there was a financial incentive.3
CBA is also providing a pathway for business customers to utilise CBA vehicle finance directly through the Tesla website, including the ability to access a discounted rate4 specifically for Tesla customers.
New CBA data shows Australian businesses are set to continue playing an outsized role in EV adoption.
According to the research, 40 per cent of companies expect to use EVs or hybrids in the next 6-12 months, up from 14.7 per cent today5. Looking beyond the next year, that is projected to more than double again.
CBA’s General Manager Asset Finance, Chris Moldrich, says actual and intended EV adoption trends show an acceleration in business use that’s already far outstripped earlier expectations.
“EV usage is surging as the market matures and becomes more affordable. That’s being helped by government concessions and an expanding choice of vehicles beyond luxury models,” he said.
“Being a preferred finance provider for Tesla means we can provide faster and simpler ways for Australian businesses to access EVs, allowing our customers to improve efficiencies and deliver greater value to their own customers.”
Commonwealth Bank of Australia ABN 48 123 123 124, Australian credit licence 234945.
1 Federal Chamber of Automotive Industries facts National Report June 2023
*Comparison rate is calculated based on a secured loan of $30,000 over a term of five years. WARNING: Comparison rate is true only for example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
2 Eligible products must meet minimum system size requirements and/or specifications and be installed by an eligible retailer and/or installer (where applicable) to be eligible for the discounted interest rates. Applications for finance are subject to the bank’s normal credit approval. More information including product eligibility criteria, terms, conditions and fees is available here (personal loan) and here (green loan). Eligible vehicles must have an active comprehensive insurance policy, organised prior to loan funding. Unsecured personal loans are also available.
3 For CBA research fieldwork was conducted by House of Brand Group between 29 August 2022 – 30 August 2022, amongst a sample of n=1012 nationally representative respondents with quotas set on age, gender and location.
4 A discounted rate will apply for qualifying Tesla vehicles to approved business customers for business purposes only when financing through the Tesla website. The actual repayment amount and interest rate will be confirmed if an application is submitted and approved. We reserve the right to change, modify or revoke any discount or interest rate offered at any time, for any reason and without notice. Applications for finance are subject to the Bank's eligibility and suitability criteria and normal credit approval processes. Customers should view our current Terms and Conditions for Asset Finance (PDF) and consider them before making any decision about these products. Rates, fees and charges apply. Credit provided by Commonwealth Bank of Australia.
5 East & Partners. Asset Finance Markets Lite. Market analysis report. June 2023.
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