The Plenti Group Ltd [ASX:PLT] share price is up today after the company said it’s getting into the ‘fast-growing’ electric vehicle (EV) financing market. Plenti Group is an ASX-listed consumer lender with 600,000 customers.
Plenti’s new EV loan offers a lower interest rate than its existing car loans
Plenti has launched today a new EV finance product to help Australians buy EVs. The new EV product has a lower car loan rate (at least 0.5% a year less) than the ones they currently have on offer for petrol cars.
Also, the new product allows customers to borrow extra to buy EV-related infrastructure such as accessories and chargers. This can be done at the beginning of the loan or any time during the life of the loan.
And Plenti is giving EV loan customers access to discounted EV insurance along with a range of tools that allow borrowers to get EV specific information like range, subsidies, costs of ownership, charger locations, etc.
Plenti’s CEO Daniel Foggo said:
‘More and more Australians are recognising the clear benefits of EVs — meaning the EV market is starting to take off. Plenti’s faster, fairer EV finance and tools will help more Australians transition to an EV, making it easier than ever to research, find and purchase their first EV.
‘Offshore experience has shown that the introduction of EVs moves the vehicle purchase experience online and this is now starting to happen in Australia. Thanks to our experience in both the auto and household renewable energy finance markets and our proprietary technology platform which can seamlessly integrate with digital car buying experiences, Plenti is uniquely positioned to take advantage of this significant shift.’
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EV sales are growing in Australia
EV sales have been growing here in Australia. According to the Electric Vehicle Council, in the first half of 2021 there were 8,688 EVs sold in Australia, that’s up from the 6,900 sold in all of 2020.
Not to mention that Plenti’s announcement is quite timely.
It comes after the Australian government said this week it will invest $250 million on EV charging infrastructure to encourage EV uptake. The government wants EV and hybrid sales to make up 30% of all new car sales by 2030.
Plenti’s shares were up close to 1% today after the announcement and were trading at $1.35 a share at time of writing.
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You can access it here.
Best,
Selva Freigedo,
For Money Morning
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