BURLINGTON, Vt.–Burlington Electric has launched a partnership with three credit unions here for what is being described as a first-in-Vermont, a new financing program to help make electric vehicles more affordable.
The plan could reduce upfront costs or financing for both fully electric and hybrid electric vehicles, Vermont Business Magazine reported.
The credit unions – Green Mountain Credit Union, Vermont Federal Credit Union, and Vermont State Employees Credit Union – are offering low- and, under certain circumstances, no-interest loans and allowing Burlington Electric customers to apply their $600, $1,200, or $1,800 Burlington Electric EV incentives toward the purchase of EVs, the publication said.
“For Burlington to be successful in achieving its net zero energy city goal, we must tackle the transportation sector’s significant and growing greenhouse gas emissions,” said Burlington Mayor Miro Weinberger in making the announcement, according to Vermont Business. “Driving electric is an important part of this environmental strategy to create significant emissions reductions. Once again, Burlington Electric and members of the Burlington community are leading the way in creating innovative solutions to our climate challenges.”
In May of 2017, Burlington Electric Department launched its EV rebate program, offering a $1,200 rebate on the purchase or lease of a new, fully electric vehicle. In June of 2017, it added plug-in hybrids to its EV rebate program, offering a $600 rebate on the purchase or lease of a plug-in hybrid. Then, in October 2017, BED increased by $600 its rebate on fully electric vehicles (but not plug-in hybrids) to a total of $1,800 for low- to moderate-income Vermonters, according to Burlington Business Magazine. Since May 2017, Burlington Electric has awarded its customers with 38 rebates, totaling $43,800.
But a remaining challenge for those interested in electric vehicles has been how to lower the price of vehicles at the point of sale before the rebates become available. Now, Burlington Electric customers have the opportunity to finance through the three credit union partners and have the full BED rebate available up-front to help “buy down” interest rates for their EV loans, according to the publication.
“Second, while receiving a federal tax credit does not happen more quickly, once a customer does receive a tax credit, BED’s credit union partners will allow BED customers to re-amortize their loans by applying any federal EV tax credits, which may total as much as $7,500, toward paying down the loan and making monthly payments even more affordable,” Burlington Business Magazine reported.
“Green Mountain Credit Union is excited to be partnering with Burlington Electric Department to bring its customers this amazing opportunity to purchase new electric vehicles,” Robert J. Lake, CEO of Green Mountain Credit Union, was quoted as saying. “We can also preapprove a BED customer’s loan request before shopping for the vehicle that best suits that customer’s family.”
The three partner credit unions each will offer different rates, and members will qualify at different levels depending on vehicle price, credit rating, and loan term.