The acknowledged environmental advantages of electric vehicles (EVs) are widely recognized, yet the adoption rate of EVs in Australia, particularly in the passenger car market, has lagged behind that of numerous other countries. While several truck manufacturers have introduced EV models to their product line-ups, and noteworthy organizations have made the switch to EVs, the uptake has been comparatively slow. The momentum for increased utilization of electric-powered trucks has gained traction, recently reinforced by the influential industry association, the Australian Trucking Association (ATA).
Despite the eagerness of many operators to embrace the benefits presented by electric trucks, they might have inquiries about potential implications related to electric truck loans and financing.
In this article, we provide an update on the ATA's efforts and shed light on the loan landscape for electric trucks, addressing common questions and concerns.
ATA and EVC Collaboration
The Australian Trucking Association (ATA) has collaborated with the Electric Vehicle Council (EVC) to develop what they consider the policies which are necessary in order to drive the sector into an electric vehicle future.
In a statement issued by the ATA, the association explains that electrification could assist trucking operators and the supply chains in a number of ways. It could end the volatility associated with the cost of diesel, reduce maintenance expenses and improve efficiency in urban areas while providing improved conditions for drivers.
The statement highlights the point that governments in Australia have made the commitment to achieve net zero. But this cannot be achieved without addressing the decarbonisation of the transport sector.
According to the ATA, Australia lags in the area of truck electrification which increases the need for urgent reform of the situation. They point out that only 14 electric truck models of the 58 available in areas such as North America, China and Europe are available in Australia.
The ATA and EVC have developed a policy agreement which includes a number of key recommendations including:-
- Exemption of EVs from curfews in urban areas.
- A change to the weight and width limits in Australia in order to allow for the accommodation of batteries.
- Exemption from stamp duty for electric trucks.
- Mandated Euro VI for new models of heavy vehicles from 2024
- Incentives to decrease the cost on the installation of charging infrastructure especially at depots
- Support by way of investment in public charging stations for charging trucks in routes
- Incentives to reduce the price differential between zero emission and EV trucks and internal combustion models
The Chair of the ATA, David Smith has stated that electric power will the industry’s game changer. He points out the cost for fuel for 300 klms in a diesel truck is $117 compared with $18 in an electric truck. He highlights the fact that operators are facing numerous barriers to purchasing and operating electric trucks and these issues must be addressed in or to reduce freight costs, to reduce emissions and to increase fuel security.
Finance for Electric Trucks
Undoubtedly, operating electric trucks presents undeniable advantages, as underscored by Mr. Smith. Nevertheless, various obstacles exist, with one prominent barrier being the cost. Prospective buyers, whether of passenger cars or heavy vehicles, face a notable price differential between electric vehicles and their conventionally powered counterparts. While the desire to reap the benefits and contribute to environmental well-being is strong, the prospect of paying significantly more for a vehicle poses a practical challenge.
For those who do choose to embrace electric-powered heavy vehicles, we can assure you that the range of truck loan products available and the associated interest rates remain consistent, irrespective of the type of engine power.
Our range of truck loan products for electric trucks include:-
- Chattel Mortgage for heavy vehicle loan
- Truck Lease
- Truck Hire Purchase
The same selection of loan types applies to all sizes of trucks – light, medium and heavy duty, and across the full range of makes and models. The interest rate and tax benefits of each loan type vary and operators should consider the complete package when deciding which will deliver them the best outcomes.
Cheap Interest Rates Reduce Price Differential
The truck loan interest rate is the major factor in the cost of a truck loan. By achieving the cheapest interest rate loan, operators can make at least some impact into reducing the difference between the purchase price of an electric truck compared with the price of a combustion engine vehicle.
Although a slight incremental variance in an interest rate might appear insignificant at first glance, its impact becomes significantly pronounced when viewed across the entire duration of a truck loan. This becomes readily apparent by employing our Truck Loan Calculator and adjusting the interest rate marginally.
At Jade Truck Loans, we remain steadfast in our commitment to securing the most cost-effective interest rate truck loans for both electric and conventional trucks. Our goal is to help our customers save money and facilitate the realization of their financial aspirations for their businesses.
Contact Jade Truck Loans on 1300 000 003 for a quote on finance for an electric truck.
DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.