CBA and Tesla Australia Partner on EV Financing

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KnowESG_CBA and Tesla Australia Partner on EV Financing
Image courtesy of CBA

The Commonwealth Bank of Australia (CBA) has unveiled an exciting partnership with Tesla Australia, positioning itself as the preferred finance provider for customers eager to transition to electric vehicles (EVs) by purchasing a Tesla.

As part of this collaboration, both CBA's business and retail clients will enjoy a seamless financing experience accessible directly through Tesla's website. This venture aims to enhance the overall customer journey and broaden the array of financing choices available.

For retail customers, the arrangement empowers Tesla enthusiasts to apply for a CBA-secured personal loan, boasting an attractive fixed interest rate of 5.49% p.a. (Comparison rate: 6.92% p.a.). This preferential rate is available to those opting to finance qualifying eco-friendly acquisitions, including electric and hybrid vehicles adhering to specific criteria, with their newly acquired vehicle serving as collateral.

Joel Larsen, CBA's General Manager of Personal Lending, expressed, "Tesla has unquestionably emerged as a pioneering and iconic brand that has significantly boosted awareness and acceptance of EVs in Australia. Through this recent announcement, we're enabling more customers to realise the advantages of electric vehicles by making financing more accessible and affordable."

Since October 2022, the bank has already facilitated over $50 million in eligible sustainable product purchases for retail customers through personal loans with reduced initial interest rates.

The appeal of EVs receives a substantial boost from recent research, which revealed that 64% of consumers would contemplate purchasing an electric or hybrid vehicle if there were financial incentives in place.

Furthermore, for business customers, CBA extends the opportunity to leverage CBA vehicle finance directly through Tesla's website, complete with an exclusive discounted rate tailor-made for Tesla patrons.

New data from CBA underscores the growing role of Australian businesses in the adoption of EVs. The research highlights that 40% of companies anticipate incorporating EVs or hybrids into their fleets within the next 6–12 months, a significant increase from the current 14.7%. Moreover, this trend is projected to more than double in the near future.

Chris Moldrich, CBA's General Manager of Asset Finance, notes that the actual and anticipated surge in EV adoption for business use has surpassed earlier expectations.

He explains, "The usage of EVs is on the rise as the market matures and becomes more cost-effective. Government incentives and a widening range of vehicles, not limited to luxury models, are contributing to this growth. By becoming the preferred finance provider for Tesla, we're streamlining the process for Australian businesses to access EVs, empowering our customers to enhance efficiency and deliver greater value to their own clientele."

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Source: CBA

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