Climate change: Bank of Australia stops providing financing for new petrol and diesel vehicles

Bank Australia has said it will stop financing fossil fuel vehicles from 2025, but will continue to provide financing for used petrol and diesel vehicles.

“By suspending auto financing for new fossil fuel vehicles, we send a signal to the Australian market that the transition from internal combustion engines to electric vehicles we expect to see in the coming years will accelerate rapidly,” Coolville said. rice field.

The bank made an announcement at the National Electric Vehicle Summit in Canberra saying urgent action was needed to keep global temperature rise below 1.5 degrees, marking the policy’s introduction in just two years. defended

“We chose 2025 because the transition to electric vehicles needs to happen quickly and with the right supportive policies to bring more and more affordable electric vehicles to Australia, we can do that. Because we believe it will,” Courville said.

The Victorian-based bank, formerly known as Bankmecu, has offered low interest rates on low-emission vehicles for the past four years, runs on 100% renewable energy, and is on track to reach net zero by 2034 earlier this year. I set a goal.

Australian drivers are staying away from the EV market for a combination of factors, including the availability of charging stations, long waiting lists and higher prices compared to petrol vehicles.

But Courville said Bank Australia wants to send a message to the market that customers should consider buying an electric car but will continue to offer financing for used fossil fuel vehicles. rice field.

“As the market expands, we are deeply aware of the need to support those who cannot yet afford an electric vehicle,” Courville said.

“We will continue to offer loans for used fossil fuel vehicles until the market for electric vehicles is viable and thriving.”

first published as Notice of shocking car loan to bank customers