Green cars can offer more than just improved fuel economy, so how else can you save? Compare some of benefits with

It’s getting easier to be green. On top of potential fuel savings, there’s plenty of other benefits to getting a green car you might not have considered.

What is a green car? By one Government definition, it’s a car that consumes less than 7L per 100km on a combined cycle e.g. a mix of highway and urban driving. The good news is many small diesel, petrol and hybrid engines can achieve that these days, and it goes without saying electric vehicles can do that too. If you’re looking at trading in that gas guzzler for a more frugal green car, here are some benefits.


An odd litre or two per 100km might not seem like much, but can add up over the long term. However, consider the 2020 Toyota Corolla. The Ascent Sport petrol model consumes 6L/100km combined, which in real-world terms may be optimistic. Compare that with the hybrid model, which consumes just 4.2L/100km.

As fuel gets more expensive, the savings could also be more dramatic, and in the Corolla’s instance, the hybrid model only has an asking price a couple grand more than the petrol model (drive away, before any negotiations). To calculate potential savings, estimate how much you drive per year first - the average motorist drives 13,400km according to the Australian Bureau of Statistics, which is only around 257km a week.


Carbon emissions might not seem like such a big deal, but the long term effects can be devastating. They have been linked to a being key cause in global warming, but aside from that, they can contribute to smog and air quality issues, affecting quality of life. Some studies have also linked highly-polluted areas to higher instances of violence.

Take the Corolla example, again - the petrol has a combined carbon output of 139g/km, while the hybrid emits just 97g/km. The petrol also has more drastic differences between city and highway driving, while with the hybrid it’s more stable.


If you’re in a good enough spot where you can afford to be looking at cars around $70,000 and over, the good news is that ‘green’ cars come with a higher luxury car tax threshold. That is, cars that consume less than 7L/100km combined.

  • From 2020, the threshold for regular cars is $68,740, while for green cars it’s $77,565.
  • After those thresholds the rate is 33c on the dollar.
  • On a $100,000 vehicle (before on-road costs) that is potentially a difference of around $2,911 in taxes.

Again, the definition of ‘fuel efficient’ vehicles is pretty generous - 7L/100km combined. That goes for a lot of hybrids and smaller vehicles, and yes - electric vehicles.


Depending on what state you live in, if you have an electric car, you could get a discount on your registration and stamp duty. According to electric vehicle manufacturer Tesla, various discounts apply to these states:

  • ACT: Electric vehicles pay $0 stamp duty, and a 20% discount on registration.
  • Victoria: Electric vehicles are exempt from the extra rate that ‘luxury vehicles’ pay in stamp duty, paying $8.40 per $200 of market value, as opposed to $18 for other vehicles. There is also a $100 annual discount on registration.
  • Queensland: Both electric and hybrid vehicles pay a reduced stamp duty rate. It’s $2 per $100 up to $100,000 in value, and $4 thereafter. This is compared to $6 per $100 for other vehicles.


When shopping around for a car loan, you may have noticed that there are lower interest rates for fuel efficient vehicles. So, what’s the deal with that?

Take for example. The brand offers a 70 basis point discount over the regular new car loan (fixed for five years) if you have a fuel efficient vehicle. Plenty of vehicles are on the list, and electric and hybrid vehicles are eligible by default. This could reduce the monthly payment from $428 to $416 per month (on a $30,000 loan), which could add up over five years.

If you’re looking to go green or upgrade to a more modern, eco-friendly vehicle, can save you money on your car loan by using our special brokerage network to find a good deal for you.