The Clean Energy Finance Corporation (CEFC) is making a significant investment of up to $50 million in an innovative wholesale floorplan financing arrangement, in collaboration with Angle Auto Finance (AAF), to expedite Australia’s transition to electric vehicles (EVs).
This initiative is a crucial step towards achieving the nation’s target of net zero emissions by 2050, the CEFC said in a media release.
The CEFC’s investment is expected to facilitate the introduction of as many as 20,000 new EVs onto Australian roads over the next two years.
AAF, Australia’s largest independent retail auto financier, will leverage the warehouse finance provided by the CEFC to enhance the turnover and recycling of credit for major vehicle dealers and supplier networks.
This will enable them to expand the volume and variety of EVs available in Australia. Additionally, AAF will offer discounted consumer finance for retail EV loans financed through its platform.
Richard Lovell, head of Debt Markets at CEFC, emphasised the organisation’s commitment to developing innovative financing solutions to accelerate investments in low emissions technologies.
He stated, “This innovative transaction is the first known floorplan finance arrangement specifically targeting supply issues, one of the major barriers to the growth of Australia’s EV market.”
Aaron Baxter, CEO of Angle Auto Finance, expressed enthusiasm for the collaboration with the CEFC, highlighting its potential to bolster the supply of EVs in the Australian market and facilitate easier financing options for consumers.
Despite the recent surge in EV sales in Australia, which saw an increase of 120.5 per cent in the first half of 2023 compared to the previous year, the nation still lags behind global counterparts such as the UK and Europe.
To meet climate targets, the Electric Vehicle Council suggests that Australia needs to have one million EVs on its roads by the end of 2027, with EVs constituting over 50 per cent of all new car sales by 2030.
The CEFC’s investment in EV initiatives extends beyond financing, with previous contributions including financing for EV infrastructure through JETCharge and support for electrified bus fleets with Zenobe.
