Let's find out why the two giants have signed an agreement today.
What is the CBA-Tesla deal?
According to the release, this morning, CBA has announced that the bank is now a preferred finance provider for Tesla Australia. This means it will help customers looking to purchase a Tesla car and make the switch to an electric vehicle (EV).
As part of the agreement, CBA's business and retail customers will be able to access financing through the bank directly from the Tesla website. It notes that this improves the customer experience and expands financing options for customers.
Low rates for CBA customers
The release notes that Tesla customers can apply for a CBA secured personal loan with a fixed, low rate of 5.49% per annum. This lower interest rate is available to customers who choose to finance eligible sustainable purchases including electric and hybrid vehicles that meet certain criteria and use their vehicle as security.
In response, CBA's General Manager of Personal Lending, Joel Larsen, said:
Tesla has proven to be one of the preeminent and hallmark brands that has propelled the awareness and uptake of EV adoption in Australia. Through this latest announcement we can help more customers realise the benefits of electric vehicles by making finance more affordable.
The bank highlights that since October 2022, it has helped retail customers purchase more than $50 million of eligible sustainable products through its personal loans with lower, upfront interest rates.
Big opportunity in business auto loans
CBA revealed that it is also providing a pathway for business customers to utilise CBA vehicle finance directly through the Tesla website. This includes the ability to access a discounted rate specifically for Tesla customers.
This could prove to be a popular option for businesses. The bank advised that its research shows that Australian businesses are set to continue playing an outsized role in EV adoption, with 40% of companies expecting to use EVs or hybrids in the next 6-12 months. This is up from 14.7% today. And then looking beyond the next year, this rate is projected to more than double again.
CBA's General Manager of Asset Finance, Chris Moldrich, said:
EV usage is surging as the market matures and becomes more affordable. That's being helped by government concessions and an expanding choice of vehicles beyond luxury models. Being a preferred finance provider for Tesla means we can provide faster and simpler ways for Australian businesses to access EVs, allowing our customers to improve efficiencies and deliver greater value to their own customers.