“Charge It” Takes on a Whole New Meaning
When your customers cannot afford what you’re selling, you finance it. Literally. Sell them the item – and the interest.
Plus a bill of goods.
This is Cadillac’s new business model for selling its soon-to-here array of electric vehicles, beginning next year with the 2023 – and $59,990 to start – Lyric. It’s a ride that not many can afford to buy – which is true of electric cars, generally. And conventional lenders – banks, credit unions and so on – are inevitably going to be less willing to write loans for these electric cars – because of the unique problem with electric cars.
In addition to the depreciation of the car, which becomes a problem – for the lender – when the car reaches the financial event horizon of being worth less than the remaining loan balance due – there is the EV-specific problem of the degredation of the battery, which accelerates the depreciation of the car.
Almost any six-year-old non-electric car still has at least another six years of probably reliable service life left. It is unlikley it will need a new engine – or transmission – for years after the loan is paid off. But a six-year-old ele
Article from LewRockwell