The Australian Government’s Clean Energy Finance Corporation (CEFC) has announced buyers of Volkswagen Group electric vehicles (EVs) – including Audi, Skoda, Cupra and Volkswagen models – will be eligible for discounted finance.
Announced on April 1, 2026, the initiative will see customers using Volkswagen Financial Services (VWFS) receive discounts of up to 1.0 per cent on standard loan rates for vehicles under the Luxury Car Tax (LCT) threshold for “fuel-efficient vehicles” of $91,387.
Electric vans are also covered and aren’t subject to this LCT threshold. The CEFC also notes the discounted financing applies to eligible used EVs.
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From its $100 million fund designed to encourage EV uptake, the CEFC will contribute 0.5 per cent of the discount, with VWFS matching the remaining 0.5 per cent.
“We’re making it easier for businesses to choose advanced electric vehicles, including those with future-ready features like V2G, by reducing barriers like high upfront costs and by encouraging manufacturers to increase model availability in Australia,” CEFC executive director Richard Lovell said in a statement.
“This investment helps lower costs today and builds a stronger market for affordable, second-hand EVs tomorrow, making clean transport more affordable for more Australians and their businesses.”
It follows a similar CEFC partnership with Hyundai Capital Australia – the finance arm of Hyundai and Kia – offering discounts of between 0.5 and 1.0 per cent on standard finance rates.
“This partnership with the CEFC is an important step toward accelerating EV adoption in Australia,” said Ralf Teichmann, managing director at Volkswagen Financial Services Australia.
“Through partnerships with original equipment manufacturers and our extensive dealer network, and by offering flexible finance options, we make it easier for individuals and businesses to transition to cleaner transport solutions.”
In terms of EVs, Volkswagen Australia currently offers the ID. 4 and ID. 5 SUVs, as well as the retro-styled ID. Buzz people mover and its commercial ID. Buzz Cargo spinoff and the recently launched e-Transporter van.
Other vehicles eligible under the initiative include the Tavascan from Cupra, the Elroq and Enyaq from Skoda, and the Q4 e-tron from Audi.
The move could help Volkswagen Australia reverse a prolonged sales slump, with the brand down 20.6 per cent in 2025 following a 16.8 per cent decline the previous year.