What if your bank refused to finance the car you wanted? That’s exactly what’s happening as one major bank introduces a controversial new policy. The decision, aimed at pushing customers toward a ‘greener’ future, has left many wondering: Is this progress, or an unfair restriction on choice?
This decision aligns with the bank’s commitment to supporting a net zero economy, but it has left many Australians questioning the implications for the average car buyer.
Bank Australia’s new policy, which came into effect in February, has drawn both praise and criticism. The bank has positioned itself as a leader in the fight against climate change, stating that by phasing out loans for new fossil fuel vehicles, they are ‘sending a signal to the Australian market about the urgent need to accelerate the transition from internal combustion engines to electric vehicles.’
The bank’s spokesperson emphasised the importance of a wide range of policies and initiatives to support the energy transition and expressed the bank’s dedication to contributing to a net zero economy. However, this move has not been without controversy.
Social media platforms and forums have become battlegrounds for debate, with some Australians expressing outrage over what they perceive as ‘net zero madness.’ Critics argue that the policy is out of touch with the financial realities of many Australians, suggesting that only the wealthy will be able to afford new cars without the support of loans for internal combustion engine (ICE) vehicles.
The frustration is palpable, with comments likening Australia’s potential future to that of Cuba, known for its vintage car culture due to economic constraints. Concerns have also been raised about the higher cost of electric vehicles (EVs), which currently have a starting price of around $40,000 in the country, with most models selling in the $60,000 to $90,000 range.
In response to these concerns, Bank Australia has clarified that customers can still apply for loans on secondhand combustion cars. This approach is reportedly intended to prevent new fossil fuel-powered vehicles from entering the market while acknowledging that not everyone can access new EVs immediately.
The bank also notes that it will take time to develop a secondhand market for electric vehicles.
Despite the backlash, some Australians support the bank’s decision, arguing that as a private business, Bank Australia has the right to determine its lending policies. They point out that consumers have the freedom to choose other financial institutions if they disagree with the bank’s stance.
Bank Australia’s policy reflects its broader ethical views and priorities. The bank’s website highlights that even with the current electricity grid, driving an EV generates significantly fewer emissions than traditional car fuels. For customers who can charge their cars at home using renewable energy from solar panels, the emissions can be ‘brought down to zero.’
This policy change by Bank Australia is a clear indication of the shifting landscape in the automotive and financial sectors, as institutions begin to align their practices with environmental goals. While it may present challenges for some consumers, it also opens up a conversation about the future of transportation and the role of financial institutions in supporting sustainable practices.
Whether you’re in the market for a new car or simply observing the changes in the industry, this policy by Bank Australia is a sign of the times—a move towards a greener future that may soon become the norm.
We’d love to hear your thoughts on this topic. How do you feel about Bank Australia’s decision to stop providing loans for new petrol and diesel cars? Do you think it’s a step in the right direction for the environment, or does it unfairly disadvantage certain consumers? Share your opinions with the YourLifeChoices community in the comments below.
Also read: New emissions standards could drive car prices up by $9,342
Once again, organisations getting involved in issues they shouldn’t.
Suggest that everyone gives this company a wide berth.
Who knows what other “Big Brother” tactics they are going to employ next.
Sure they are a private entity and can do what they want, but likewise potential customers can choose to avoid them and their ideologies.
Good on you, 45er. They also seem to forget that these vehicles still need fossil fuels so that they can recharge. Also, only the rich can afford to run them because everything else about them costs more than the current fossil fuel vehicles.
Only the rich can afford them??? What rubbish, what costs are more? No oil/filter change, no transmission fluid change, brakes last FAR LONGER, tyres are no different, any services are very basic checks.
And recharging them – do you live under a rock, solar, wind, hydro, ever heard of them? I know many people who charge after work, using their batteries that have been charged through the day from the sun.
I know many people are scared of what they don’t understand, there’s nothing to worry about.
What happens if you live in rented accommodation, and the landlords/strata won’t put the chargers in? I certainly couldn’t afford an EV, so I’ll stick with my ICE for now, thanks.
are you sure you are not Bowens avatar
Only an idiot would rely on renewables, take this last 5 days in Qld and N.NSW. Cyclonic winds that turbines cannot cope with, 100% cloud cover giving no chance for solar panels to work.
Even mobile mechanics now have a trailer with large generators on the recharge all the stupid EV drivers who run out of power.
It takes four times the energy to mine and process al the elements and ores that are needed to manufacture EV vehicles. @nd hand EV vehicles, obviously you’ve never tried to sell one, battery life is limited to 8 years or less,. Lithium cannot be recycled to the whole sub frame and battery has to be replaces. Including labour, this process would cost up to 60% of a new vehicle.
Victoria is pushing for 100% EV’s in the state, yet last time there was inclement weather, greatly reducing the generation capacity of turbines and solar panels, the state government urged all citizens to conserve as much power as possible, Do you think households are going cut cut back on cooking, laundry, heating, cooling and home entertainment etc, so some rich smart arsed inner city greenie, can charge up his Holier than thou” EV car. Grow up and live in the real world
Due to the heavier weight of EV’s the tyres wear out much faster and has a detrimental effect on roads. The taxes earned from petrol for ICE vehicles is also lost.
Good on the bank. A principled stand.
Too early. If you live rurally there are no community charging stations. Not everyone has solar, not everyone with solar has batteries. That’s a lot of infrastructure need to be able to afford an EV, not even taking into consideration the much higher price. This seems to be geared to the high end market who can afford top end ‘sustainable’ products and real estate. A bit of a kick in the head for those struggling to survive. How about offering low interest loans for people to be able to access solar and batteries? (not all states have subsidies)? I am sure there must be more creative solutions to this
Before I will contemplate an EV, two things need to happen:-
1) Their range needs to be at least 800 to 1000km
2) Their Price needs to be more accessible to the average Australian
With the Prices Starting at $40K and most between $60k & $90K, when you can buy new ICE Vehicles from approx. $18K and Hybrids from approx. $25K
So this bank, whoever it is, will dictate to its customers what vehicles they can purchase? I mistakenly thought we were able to make such choices ourselves – that it was countries such as North Korea, China, and Russia that dictated their citizens lives to this extent.
This bank wants to deliberately limit its customers to vehicles:
that are absolutely the opposite of environmentally friendly both before and during production, and at the end of their short, useful life;
that are expensive to purchase;
that would have to rely on our extremely unreliable power supplies;
that have a very short ‘shelf life’ as against my 23 year old IC Toyota which continues to transport me like a trusted retainer;
that has limited viable use in major swathes of our country….
THIS is what that bank wants for its customers??
I have never heard of this institution, but now that I know at least one of its policies I will avoid it like the plague.
Well said Jo.
I have never heard of the bank .
With thinking like this I hope the govt is not giving them surety over the govt guarantee to small investors.hammo
Banks had already started censorship by not lending to gun or adult shops or to fossil fuel companies. As left wing media has not reported on these censorships widely, they are expanding their scope to see what they the banks can get away with.
Off course, if we have money with those banks that’s what they lend to others. So, we are essentially funding their censorship.
Stupid move by the bank. They should stay out of things which they should have no bias. It should be up to the customer what they spend their money on. Big brother again?. I could not afford the exorbitant prices that Synergy(Western Australian energy) charges for electricity to charge an electric vehicle.