For reference, warehouse financing is a “form of inventory financing that involves a loan made by a financial institution to a company, manufacturer, or processor.”
The American EV-only consumer loan platform will get a $10 million warehouse facility from NY Green Bank and up to $15 million in additional funding.
Remarkably, it is the first time a reputable government financial institution has provided finance for a warehouse that only accepts electric vehicles. The prices that arise from it ought to make EV ownership more accessible for people living in New York State.
NY Green Bank’s president, Andrew Kessler, stated:
“NY Green Bank is proud to support Tenet’s innovative EV financing model to help more New Yorkers access electric vehicles. Tenet’s model has the potential to provide 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 85% by 2050.”
When Tenet was asked how it differed from conventional lenders, its spokeswoman responded:
“We offer rates that are competitive with other lenders (or, in the case of Tesla’s financing, 0.25% lower), but unlike other lenders, we offer loan terms as long as 84 months. We also offer a deferred payment option that lets drivers immediately lower their monthly payments by deferring up to 25% of their down payment until the end of their loan term. $7,500 tax credits and federal rebates can be used to pay that final sum down, or many choose to refinance or trade in at the end of their term. Traditional lenders treat EVs and gas cars the same, not accounting for the better value retention of an EV over a gas car.”
New York State announced in September a target to have all new passenger cars and trucks sold there be zero-emission vehicles by 2035. Undoubtedly, government initiatives like these are crucial in promoting the adoption of electric vehicles.