Australian Government announces credit line to boost used electric-car market

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Car dealerships will have access to a new credit line to source electric vehicles, thanks to a new funding package from the Federal Government.

The Australian Government has announced a $76 million funding package it says will improve the supply of electric cars for buyers.

An investment of $50 million will be made available to car dealerships, providing them with a credit line to purchase stock of electric cars for their forecourts.

The short-term dealer finance is only paid back once a car is sold to a customer, and is estimated will help bring 20,000 electric vehicles to Australian roads over the next two years.

An additional $4 million will also be provided by the Australian Renewable Energy Agency to help rental company Europcar acquire 3100 brand-new battery-powered cars to its fleet, with the vehicles to be sold into the used-car market after two years.

“A lot of people try out an electric vehicle when they’re hiring a car and see if that suits them,” Minister for Climate Change and Energy Chris Bowen told media at the announcement.

“Also, of course, they turn over their cars so that hits the secondhand fleet in a couple of years time, which is very important. We want to see more electric vehicles secondhand because that’s how a lot of people will get in the market.”

Europcar and Ampol also have plans to install 256 chargers across 41 hire car sites across the country.

The government will also invest $22 million to help facilitate the purchase of electric cars and trucks within the freight and logistics industry, and local councils in Western Australia.

Ben Zachariah is an experienced writer and motoring journalist from Melbourne, having worked in the automotive industry for more than two decades. Ben began writing professionally more than 15 years ago and was previously an interstate truck driver. He completed his MBA in Finance in early 2021 and is considered an expert on classic car investment.

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