Volvo Financial Services launches Electric Ready Lease for electric trucks

Volvo Financial Services has launched a new financing product, the Electric Ready Lease, aimed at supporting the uptake of electric trucks in Australia. The initiative has been developed in conjunction with the Clean Energy Finance Corporation (CEFC) and is backed by a $70 million finance package.

The new offering is designed to lower barriers to entry for transport businesses adopting zero-emissions heavy vehicles. It is targeted at customers leasing Volvo medium- and heavy-duty electric trucks and related infrastructure.

Left to right: Tom Chapman (Vice President Volvo Sales & Marketing, Volvo Group Australia), David McGuire (President and Managing Director, Volvo Financial Services Australia), Martin Merrick (President and CEO, Volvo Group Australia), The Hon Chris Bowen MP (Minister for Climate Change and Energy), Shylie Mackenzie (Vice President Public Affairs, Volvo Group Australia), David Bertini (Director of Sales & Market Development, Volvo Financial Services Australia).

Under the Electric Ready Lease, eligible customers can access an interest rate discount of up to 0.5 percentage points. The package also includes financing for residual value support, intended to reduce operating lease costs and support the future value of electric trucks under lease. Leasing of electric vehicle chargers is also included.

Volvo Group Australia has committed to manufacturing Volvo electric trucks at its production facility in Queensland as part of its broader sustainability plans. The Wacol facility has produced more than 80,000 trucks since manufacturing began there in 1972.

Martin Merrick, president and chief executive officer of Volvo Group Australia, said the finance offering comes at a key point for Australia’s net-zero objectives.

“The announcement of this finance comes at a critical time for Australia’s net zero ambitions. We know the cost of entry is a significant hurdle to overcome for many of our customers wanting to take the first steps towards implementing electric transport solutions in their businesses.”

David McGuire, managing director of Volvo Financial Services, said the program is intended to make the transition to electric trucks more affordable and accessible.

“This program is designed to make the transition more affordable, allowing more of our customers to take that first vital step towards a fossil-free future for the benefit of all Australians. I have no doubt that working with the CEFC will act as a key enabler that will help drive the uptake and adoption of heavy electric vehicles.”

Transport accounts for up to 22.3% of Australia’s national greenhouse gas emissions and is the fastest-growing source of emissions. Road transport represents 84% of total transport emissions, while urban distribution accounts for around 34% of Australia’s transport activity, a segment widely viewed as well suited to electric vehicle applications.