Earlier it was fashionable to own big and luxury cars powered by gasoline and consequently, there was no demand for electric cars. However, in the last several years there has been spurt in gasoline prices and awareness in the public as well as governmental agencies all over the world about the harmful effects gas emissions.
As a result of these developments, the current trend is on eco-friendly systems. “Go Green” is the buzz-word these days. Automobile manufactures have taken the cue and are rolling out more and more “smart cars” that run on renewable energy, such as solar energy and wind energy. With the result, buyers get variety of options to reduce pollution levels on the planet.
Online lenders, sensing the popular trends, are also offering loans to customers for buying eco-friendly, pollution-free cars that run on electricity or renewable energy, like solar energy or wind energy. Although car loan schemes for electric vehicles are not as such new and this type of financing was already in existence in early 2000.
It had not been popular because of non-availability of suitable models that generate interest in people and motivate them to buy such vehicles. Until lately, most of the electric cars were neither appealing nor comfortable and powerful. Their designs appealed to only a small segment of strange market.
The path-breaking technological advances in automobile industry and developments in chip, cell, bio-fuel and other suitable technologies stepped up the production levels of new types of eco-friendly cars to new heights. Pushed, to some extent, by increases in oil and gas prices, the customers are increasingly leaning towards having pollution-free “green cars” in their garage.
Governments are also insisting upon several other public and private sector organizations to throw their weight in reducing greenhouse gas emissions by introducing cleaner and eco-friendly modes of transport. Encouraged by the governmental support, banks, car loan financing companies, other lenders and credit unions are doing their bit and are extending car loan facilities online at lower rates of interest to those seeking financing for buying the hybrid type cars, electric cars and other fuel-efficient vehicles .
The financing institutions, far from considering this type of lending as a vicious cycle, view it as a great opportunity. This is because such type of car loan financing would fetch numerous advantages not only to buyers of “clean” vehicles but also to the financing sector and above all, the environment.
Many purchasers of hybrid cars and electric cars have confirmed that they have availed car loans at lower rates of interest from online car loan companies and that they also get a number of tax incentives.
According to the latest surveys, preference towards the Environmental Protection Agency’s certified fuel-efficient cars is much more in people in their 20’s than the other age groups and they are not simply swayed by the attractive discounts on the interest rates. Several credit unions, for example, only offer insignificant discounts, around less than 1%, based on a hybrid car’s fuel efficiency.
However, an extra reduction in interest can be obtained on the strength of signed e statements. In fact, considerable savings on the cost of gas is the major motivating factor in owning electric cars and far exceeds fears over maintaining or reselling such type of vehicles. A number of car dealers have introduced sale promotion offers, like a donation to an environmental organization and free “gas cards”.
The spurt in consumer demand for electric cars has also kept the financing busy. Numerous lending companies are too happy to be a constituent of “go greener” projects.
Most of the financing companies that have sanctioned eco-friendly car loans in the last decade have reported that the percentage of defaults are far less in respect of those who have availed loans for buying fuel-efficient cars than in other category of borrowers.
Those interested in buying eco-friendly and fuel-efficient electric or hybrid vehicles under a green car loan program should carry out a thorough research and understand the advantages and disadvantages of such vehicles. They should also be clear about their financing plan.
Numerous companies that extend car loans online can provide all the information required with just a few clicks of the mouse of the computer. It is advisable for those interested to make a beginning by checking the details.