New York State is funding an EV-only consumer loan platform
EV seed-stage company Tenet, which offers consumer loans for EVs, today announced it has secured $25 million in a first-of-its-kind warehouse facility from NY Green Bank for EV loan financing that originates in New York State.
If you’re not familiar with the term warehouse financing, it’s “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 New York State Energy Research and Development Authority, is providing Tenet a $10 million warehouse facility with up to $15 million in additional capital available.
It’s the first time a prominent government financial institution is funding an EV-only warehouse, and its resulting rates should help make EV ownership more affordable for New York State residents.
Andrew Kessler, president of NY Green Bank, said:
"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."
Just over a week ago, Tenet announced the first-ever EV-only warehouse facility, and today marks the first time a government green bank has funded one.
Electrek asked Tenet what differentiates it from traditional lenders, and their spokesperson replied:
"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."
In September, New York State set a goal to ensure all new passenger cars and trucks sold in the state to be zero-emission by 2035.