Green Financing For Your Car Loan: What Green Financing Is and How You Can Take Advantage of It
Defining green financing
While there are varying definitions of green financing, they all speak of making investments in or financing ventures conducted with the environment in mind and aim at enhancing environmental sustainability.
Its development was as a means to curb global warning and encourage use of renewable, clean energy. Various financial institutions have taken it up since then making it more than a passing fad. Green financing is increasingly becoming the preferred way of encouraging environmentally sustainable ventures.
Green financing and cars loans
The automobile sector has not been left behind on the green financing bandwagon. Several financial institutions are offering these green title loans for individuals buying eco-friendly, fuel-efficient cars. And the best part is, you will get the loan at a lower interest rate compared with other kinds of cars.
This is geared towards the younger demographic and the environmentally conscious types and has actually proven to be beneficial for everyone: you get to protect the environment and pay less for the car, while the financers have found that people on green loans tend to pay them back sooner than other auto loans.
So how do you get in on this deal?
The first thing you have to do is ensure that your car is actually ‘green’. This is possible through getting a certification from the Environmental Protection Agency confirming that your vehicle is actually fuel-efficient and eco-friendly.
These ‘green’ qualifications are not just limited to hybrid and electric cars. Vehicles running on gas or diesel can rank as ‘green’ if the rating on their fuel economy is greater than 40 miles for each gallon. This means that you can buy a used car and as long as it falls in the required fuel economy, you will be able to get anything from 0.25% to 0.5% off on your interest rate. Now, that is what I call an excellent deal!
However, you need to check with your financing institution to find out how far their qualification of ‘green’ vehicles extend. It may not be the same for each institution.
Where can you get a green auto loan?
This is where the work begins for you. Wherever you are checking out to get the different car title loans San Jose has to offer or San Francisco’s best dealers, you will need to do some checking to find these green auto loans.
The first place to check should be your current financial institution. They could have the green loans, which will give you an added advantage of being able to lower the interest rate even further since you are a regular or return customer.
Another option could be to ask your car dealer to give you a list of possible financers. Most dealerships majoring in eco-friendly vehicles should have some that you can choose from. Just like any other kind of financing, be sure to shop around until you are sure you have the best possible deal.
Overall, green financing is a great initiative ensuring that you save money while protecting the environment.
Jenny Richards is a financial writer and environmentalist at heart. She keeps tabs on all things financial from the different car title loans San Jose offers to trading trends on Wall Street.