Green auto loans, what is the deal and how do they work.
The planet is going green! Well that is not true but at least you can do your bit with Green auto loans. What are green auto loans? How can you qualify? Is it a good deal or simply a marketing gimmick to take cash from the environmentally responsible? This article will attempt to answer these and other questions you need to know to get the most out of green auto loans, or not, whatever might be your choice.
First of all, why go green at all. Well unless you were a member of the Bush cabinet you know that the emission of carbon dioxide to the atmosphere increases the percentage of carbon dioxide in the atmosphere increasing the greenhouse effect of the atmosphere. The greenhouse effect is a wonderful way to keep the world nice and warm allowing life in our beautiful planet. When the balance of gases that cause the greenhouse effect is set out of sync the world heats up causing extreme weather, increase of the water level and other dangerous consequences.
So now we have dealt with the obvious let’s answer the interesting questions.
What are green auto loans? Green auto loans are loans that are offered at a discount price if a certain car type or model is bought. These incentives are provided by the Government and Private finance companies alike. One bank offered a 0.5% discount on their auto loan interest rates for all clients that bought a “green car”. They defined green as a car that does 25 miles or more per gallon in the city. These incentives are great. The lending company looks good, the borrower saves on fuel, earns bragging points and can show off how even his auto loan is green and ultimately we give our planet a small but welcome break.
Is it a good deal or simply a marketing gimmick to take cash from the environmentally responsible?
It all depends what you consider a good deal. Depending on the requirements set by the government or company providing the incentive the vehicle you must buy to qualify will cost much more than the 0.5% interest break can justify. Even inserting the saving you will make on fuel it might be difficult to justify the loan as a normal financial investment. However as a socially responsible it is a sweet way of saving on some of the cost of buying a green car.
The next question is what kind of cars qualify as “green loan cars”?
As we said the incentives vary from country to country or bank to bank and you will need to make sure you understand the conditions of the program. To get a detailed report of fuel economy tips and a guide of the green cars on the market visit www.fueleconomy.gov there you can get a comprehensive analysis of the car models you are interested their fuel consumption and carbon fingerprint as a whole. Going green and saving money, a beautiful combination you should not miss.