Startup makes EVs more accessible by delaying biggest bill – gotechbusiness.com

0
50

The auto industry is counting on electric vehicles to reduce cooking emissions on the planet, but EVs are still too expensive to drive gas guzzlers out of the game. For now at least.

Sure, electric vehicle sales are up, maintenance costs are low and gas prices are high, making combustion engines look even worse. But on the other hand, the supply of electric cars is still limited in relation to the demand, car manufacturers are busy prioritizing luxury modelseven charging at home has been more expensive lately.

While we wait for improved tax cuts to make EVs more accessible in the US, a fintech startup called Basic principle launches with claims it can soften the blow of EV ownership.

With $18 million in seed funding led by San Francisco-based Human Capital and London’s Giant Ventures, Tenet says EV loan offerings cut monthly payments by an average of $200. It does this by deferring customers “up to 10-25% of their loan amount until the end of their term.” If you take out a loan through Tenet, the company will refer you to eligible dealers and marketplaces. Tenet also expects its partners to point customers in its direction.

Tenet doesn’t actually cut the price of an EV sticker, so buyers will still have to afford one — averaging a whopping $56,437 if they buy new, per Kelley Blue Book† But by lowering the price up front, more buyers can take advantage of cheaper maintenance and lower fuel costs.

“Tenet works exclusively with sustainability and ESG-focused institutional investors and capital markets,” CEO Alex Liegl told gotechbusiness.com. This apparently gives the startup access to a cheaper cost of capital, which it can pass on to the end consumer in the form of lower rates than those offered by traditional lenders.

The New York-based startup declined to share details about interest rates, saying they “vary significantly” depending on where customers are located. Tenet accepts FICO scores as low as 620, meaning many people (100 million or so in the US) are not eligible.

Other investors, including Breyer Capital, Global Founders Capital and Creative Artists Agency co-founder Michael Ovitz, also contributed to Tenet’s starting round. Ultimately, Tenet says it may also fund “emission-free home upgrades,” including EV chargers, heat pumps, and the like.

LEAVE A REPLY

Please enter your comment!
Please enter your name here