Shopping for a Green Car
For decades, vehicles that didn’t need petrol were only found in science fiction films. But green technology has made huge leaps over the past few years, and eco-friendly cars are not only available but surprisingly affordable.
Motorists no longer need to choose between going for a drive and protecting the environment. But with these advancements come greater variety. A smart borrower needs to determine which type of green car they want before applying for an auto loan.
Types of Eco-Friendly Cars
At the moment, there are three primary types of eco-friendly cars: fuel-efficient, electric, and hybrid. We’ll take a look at each.
- Fuel-Efficient – Fuel-efficient vehicles still run on petrol. But as their name suggests, they burn that fuel far more efficiently than their gas-guzzling counterparts. Using technologies such as guidance mechanisms and automatic gearing, as well as design changes that limit the car’s weight, fuel-efficient vehicles burn less petrol and require fewer trips to the servo.
- Electric – Electric cars are driven by a battery-powered electric engine, with no need for petrol. Although they have a much lower range than other types of vehicles, electric cars do have simpler engines, which cost less to service. With the continuing increase in charging stations, electric car owners find themselves with more and more travel options across Australia.
- Hybrid – Hybrid cars offer the best of both worlds, running on electric batteries primarily, but switching to petrol when needed. There are several types of hybrid cars available, including parallel hybrid cars, in which the electric engine assists the petrol engine, and the series hybrid, which runs on an electric battery that is charged by the petrol engine.
Perhaps unsurprisingly, fuel-efficient vehicles cost the least and electric cars cost the most. Electric cars tend to cost $50,000 or more, while fuel-efficient cars cost $15,000 and up. But after those initial investments, electric cars will not require the regular trips to the petrol station that you’ll need with even a fuel-efficient car. Hybrid cars fall right in the middle, costing on average $25,000 or more.
Ready to Buy?
While many factors will affect your purchasing decisions, your car loan term and rate are among the most important. Don’t hesitate to reach out to a Mortgage House lending specialist. We’re here to help you get the right car, whether it runs on petrol, electricity, or a little bit of both.