Australian bank will stop issuing loans on new gas-powered cars in 2025

There are more electric vehicles on the road than ever before, and most automakers have committed considerable sums to direct their manufacturing might to build EVs. An Australian bank recently implemented a policy to stop issuing loans for new gasoline and diesel cars in 2025, intended to prevent customers from being locked in with gas-guzzling cars as the automotive world changes.

Bank Australia Chief Impact Officer Sasha Courville released a statement that said, in part, “Ultimately, our announcement today is the beginning of a conversation with our customers and a signal to the wider market that if you’re considering buying a new car, you should seriously think about an electric vehicle – both for its impact on the climate and for its lifetime cost savings.”

The decision won’t take effect until 2025, and once it does, the bank will only issue loans on used gas cars until the market offers a reasonable number of used electric vehicles. The bank also has a goal to reach net-zero emissions by 2035.

Australians are warming to the idea of electric vehicles, but they still represent a tiny portion of the country’s overall auto market. Tesla is the most popular EV brand in the country, but several automakers, including Nissan, Mini, BMW, and MG, sell electric models there.

We’re likely to start seeing arrangements of this type becoming more common as time passes. Automakers including Ford, VW, General Motors, and others have stated goals to shift large portions of their sales to EVs, and some have committed to a complete transition. Since many customers rely on in-house financing to purchase a new car, the automakers’ financing arms may make a similar decision to cease loans on internal combustion vehicles.