Tenet breaks into commercial fleet financing

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Electric vehicle financing startup Tenet has expanded into commercial fleet financing through a partnership with carsharing marketplace Getaround 

Getaround allows customers to earn income by listing their cars on the marketplace for short-term rentals ranging from an hour to several weeks, according to a company release. New York-based Tenet provides electric vehicle (EV) financing for fleet and car owners who are listing the vehicles for rent on Getaround’s platform. 

EVs are a growing segment for hosts who rent their cars on carsharing platforms, founder and Chief Executive Alex Liegl told Auto Finance News. “This solution that we have in terms of reducing your monthly payment as well as integrating the installation of chargers and being able to leverage tax credits is on point for [carsharing hosts],” he said. “This is a way for people to make a cashflow-positive business out of renting EVs that have lower maintenance and lower monthly costs married with a loan product that also optimizes their monthly payment.” 

Under the program, which launched in April, Tenet financing is integrated into Getaround’s marketplace, allowing owners to finance the purchase of multiple EVs, according to the release. Fleet buyers who finance their purchase with Tenet’s EV-specific loan are eligible for bonuses of up to $1,700 per vehicle. 

EV financing boosts fleet rental 

“By offering differentiated solutions to our customers, like Tenet’s innovative financing offering, we are enabling our hosts to grow their fleets while helping [to] grow our EV footprint nationally, electrify future fleets and ensure Getaround continues to play a key role in advancing the transition to clean energy,” said Sy Fahimi, chief operating officer at Getaround. 

The partnership is Tenet’s first foray into commercial fleet financing. The startup originates and services loans for EV purchases while allowing borrowers to defer 10% to 20% of the loan principal while they await approval of the $7,500 federal tax credit.  

“The [commercial] product is an extension of the platform we’ve already built for the consumers that we’re serving nationwide,” Liegl said. 

Tenet has been expanding its scope, having launched in December 2022 a bundled financing option that combines EV charger and installation with the car purchase in a single monthly payment.  

The financier sells consumer EV loans to its financing partners — banks, financial institutions, mobility platforms, fintechs and dealerships — and receives acquisition and servicing fees.  

On the commercial side, Tenet plans to sell the loans to asset managers rather than other lenders, Liegl said, noting that asset managers also provide upfront financing for the fleet loans. Tenet also has a $10 million warehouse facility with New York Green Bank. 

Tenet plans to continue scaling its commercial program as demand grows for EV financing in the car-sharing market, Liegl said, without naming potential partners. “Longer term, we’ll be able to offer fleet financing to companies and corporates,” he said.  

— Additional reporting by Joey Pizzolato 

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Source : AutoFinanceNews