New York State Funds Electric Vehicle-Only Consumer Lending Platform
Electric Vehicle Seed Company Principlewhich provides consumer loans for electric vehicles, today announced that it has secured $25 million in a first-of-its-kind warehouse from NY Green Bank for financing electric vehicle loans from the state of New York.
If you are unfamiliar with the term warehouse financingit is “a form of inventory financing that involves a loan made by a financial institution to a company, manufacturer or processor”.
NY Green Bank, a division of the New York State Energy Research and Development Authority, provides Tenet with a $10 million warehouse with up to $15 million in additional capital available.
This is the first time a leading government financial institution has funded an EV-only warehouse, and the resulting rates are expected to help make EV ownership more affordable for New York residents. .
Andrew Kessler, President of NY Green Bank, said:
NY Green Bank is proud to support Tenet’s innovative electric vehicle financing model to help more New Yorkers access electric vehicles. Tenet’s model has the potential to generate substantial savings that reward individuals for adopting a climate-friendly lifestyle.
Accelerating the adoption of electric vehicles supports the state’s goal of reducing greenhouse gas emissions by 85% by 2050.
A little over a week ago, Tenet announcement the very first warehouse dedicated to electric vehicles, and today is the first time that a government green bank has financed one.
Electrek asked Tenet what makes it different from traditional lenders, and their spokesperson replied:
We offer rates competitive with other lenders (or in the case of Tesla financing, 0.25% lower), but unlike other lenders, we offer loan terms of up to 84 months.
We also offer a deferred payment option that allows drivers to immediately reduce their monthly payments by deferring up to 25% of their down payment until the end of their loan term.
Tax credits of $7,500 and federal rebates can be used to pay that final sum, or many choose to refinance or trade in at the end of their term.
Traditional lenders treat electric vehicles and gas-powered cars the same, disregarding the better value retention of an electric vehicle compared to a gas-powered car.
In September, New York State set an objective to ensure that all new passenger cars and trucks sold in the state will be zero emissions by 2035.
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