Buying an EV can come with additional out-of-pocket expenses, like paying for the installation of a home charging setup. Astute minds at the Bank of America identified this new opportunity, with the company now allowing customers to finance a home EV charger as part of a new car purchase.
Many new EV customers are eager to purchase a home charging solution for their new car. Being able to keep the car topped off in the garage is, after all, a key benefit of EVs over ICE-powered vehicles. Chargers can be expensive, however, and thus it makes sense that customers might like to roll them into their new auto loan.
Over 10,000 dealers work with Bank of America for financing, as well as several EV manufacturers. Customers eager to roll a charger into their new EV purchase will be able to access the combined finance option through these channels, where available. The offer may also spur other auto lenders to follow suit, lest customers go elsewhere to avoid having to pay upfront for charging equipment.
As a guide, a home EV charging solution can cost thousands of dollars, especially once installation fees are taken into account. As an example, Nissan‘s charging partner Wallbox sells the Pulsar Plus Level 2 charger for $649, which is capable of 9.6kW output. Meanwhile, Porsche sells the Wall Charger Connect for $1,586, which will deliver up to 19.2 kW. Of course, both companies also typically ship their vehicles with Level 1 charging cables included, which allow slow home charging from a regular 110V outlet.
Fundamentally, it’s the same concept as packaging dealer-fit accessories into a new car loan. It could help remove a roadblock for customers eager to switch to an EV by providing a streamlined way to get their homes suitably equipped. “We aim to help people ‘go electric’ by providing financing for this critical accessory,” said Fabien Thierry, head of Consumer Vehicle Products for Bank of America.
A more skeptical view might be that the bank saw an opportunity to secure a larger slice of the pie in the EV loan market, but that doesn’t mean the offer won’t help nascent EV buyers get over the line. Bank of America quotes statistics stating that the US market saw 1.3 million home chargers sold in 2021. Projections have that rocketing up to 27.5 million by 2030, which was likely enough of a signal for the bank to want a piece of the action.
New EV customers will often see home chargers as a key part of their new auto purchase. Thus, combining the cost of the charger into the overall car payment is really a no-brainer. Expect to see more lenders follow this example as EVs and home charging become commonplace in the coming decade.
Got a tip? Let the author know: [email protected]