Startups use data-driven insights to reduce EV costs… – Canary Media | CarTailz

Most US car buyers don’t get a fair deal on the loans they take out to buy electric vehicles, according to Alex Liegl, co-founder and chairman of electric vehicle financing startup Tenet – and he has the data to back it.

For example, why not take credit into account the federal tax credits and state and utility incentives you get when you buy one EV? That money may not reach the buyer for a year or more after purchase, but it makes it more likely that they’ll keep up with their monthly payments.

Sign up to get the latest news from Canary

EVs also cost less to fuel and maintain than gasoline-powered vehicles, reducing the financial burden on their owners. And if the owner defaults on the loan and the lender has to repossess the car, used EVs are typically worth more than traditional ICE cars — and the higher value of that collateral should be worth something, too.

Tenet’s unique version EV Credit bundles all of these factors into one package that helps consumers Recognition of the unique characteristics of electric vehicles,” said Liegl. What the market has so far lacked is the solid data to back up its gut feeling EV Buyers are lower credit risks. The more data we can collect, the more efficiently we can assess our consumer credit and the more savings we can pass on.”

Since his 2021 The start-up from Silicon Valley raised one dollar when it was founded18 million seed financing round and has won a number of automotive and financing partners under this premise. Last month it secured a $20 Million credit facility from Silicon Valley Bank that will make it possible arise up to $20 million one EV loans per month,” he said.

Tenet does not keep the loans on its own balance sheet, explained Liegl. Instead, it makes money from banks, credit unions, automakers, dealerships, and other financing partners that use the data analytics it powers to do so Connect the dots and align those incentives.”

The company has made several thousand loans possible so far and is active across the board 33 States, and strives to get at least 10,000 EVs financed to the end 2023, he said. On average, these loans offer monthly payments that are around $150 fewer than payments for electric vehicle loans, which are made in more conventional ways, Tenet said.

The availability of more attractive credit could play a big role in the acceleration EV Acceptance among US consumers, said Nick Christian, head of specialty finance at Silicon Valley Bank. Around 85 percent of US car buyers finance their vehicle purchase.

Lower borrowing costs are also becoming increasingly important to making EVs more affordable as states like California require an increasing percentage of new vehicle sales to be EVs and will ban the sale of new gasoline-powered vehicles starting in 2018 2035. And with interest rates generally rising, it’s especially important to keep monthly loan payments as low as possible.

The financing units of the car manufacturers offer special offers for EV Loans for years, as have certain banks and credit unions, Christian said. but You draw for electric vehicles no differently than for a vehicle with a combustion engine.”

In other words, those offers aren’t necessarily backed by any underlying analysis of the data that might justify them, he said. Tenet, on the other hand, has compiled the relevant data EV the ability of buyers to repay their loans and the long-term value of the asset they’re borrowing against in a way Christian hasn’t seen at other auto lenders.

I suspect if someone is successful, there will be imitators,” he said. But they are the first.”

simplification of EV ownership experience

Tenet is working to reduce this EV the buyer’s costs in another way: streamlining the installation process EV Chargers at the customer’s home. To that end, the company has partnered with Treehouse, another Silicon Valley startup that has developed a similar data-driven approach to bundling purchase and installation costs EV chargers at home.

Many automakers and dealers offer EV Buyer discounts on home chargers from a variety of technology providers. But few offer help in estimating how much it will cost to install these chargers, Treehouse chairman Eric Owski said — and no one he knows — bundles the cost of installing the charger into the credit to buy one EVhow Treehouse and Tenet plan to start in the first quarter 2023.

Most EV Owners receive pretty poor instructions at the point of sale on how to prepare their home to charge their new devices EV, Oski said. That can be a problem for homes with insufficient electricity to support heavier charging loads, or with cables that don’t reach to where they park their cars.

Anecdotally likely 10 to 20 percent of EV Shoppers have encountered a problem they wish they had known about beforehand,” he said in relation to home charging. For a small percentage of them, it becomes a real deal breaker.”

Treehouse collects data from prospective customers through an online form that asks relatively simple questions – home address, type of building, preferred charger location, and electrical panel location and amperage – and combines that information with a growth store of its own to generate a cost estimate for to create the installation.

Leave a Comment