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What are green car loans?
My cousin says she bought a Tesla with a green car loan. What kind of loan is this?
Jim Donaher · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Green car loans are offered by lenders via the Fuel Smart Auto Loan program to create an incentive for people to buy more fuel-efficient vehicles. These include hybrid cars, all-electric vehicles, alternative-fuel vehicles, and even some traditional cars with a consistent track record of excellent mileage or minimal emissions that pollute the air.
Current standards require that the car achieve at least a 30 mile-per-gallon fuel efficiency and have a greenhouse rating of seven or better. A green car loan can even be given for a used car, provided that it isn’t more than two years old. If the car is a hybrid or all-electric, it will likely qualify.
If you haven’t decided on a car yet, your best move is to check out the government website
FuelEconomy.gov
to see if the vehicles you are considering qualify for the program. Once you settle on the car you like, shop for loans with lenders, taking care to ask them about the Fuel Smart Auto Loan program.When you are approved for a green car loan, you will enjoy a lower interest rate, the elimination or reduction of some fees, and flexible terms enabling you to manage the impact of your monthly payments.
“
View full answer
- Gregory R.
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