# [EVDL] EV Conversion Financing



## EVDL List (Jul 27, 2007)

After reading a recent post saying roughly "do it
yourself, hire someone, or stop expecting an EV for
free", I got to thinking about EV conversion
financing. 

When I bought my Force, I was lucky enough to have a
local Credit Union give me a signature loan to
purchase the vehicle (at 10.5% interest over 2 years).
Used car loans are difficult to apply to an EV since
they don't fit the usual categories that banks are
accustomed too. Also, they are sold typically by
individuals instead of used car lots. The problem is
compounded with a conversion kit, since a bank would
have trouble accepting the parts as collateral on the
loan. Remember, not every person that tries to make
an EV conversion succeeds! Even when they do, it
often takes far longer than anticipated. 

What we need is a financial institution that is
interested in this issue. 

Here is what I propose: 

The Electric Auto Association (EAA) or some similar EV
advocacy group sets up a trust fund. Individuals
purchase a "private EV loan insurance" from the EAA to
guarantee their EV conversion loan that is underwriten
by a Bank. This would be similar to Private Mortgage
Insurance, for people who don't have enough down
payment to qualify for a home loan otherwise. 

The EAA gets paid a little bit of money from each
individual that takes out one of these loans, which
covers the "payout" of the occasional default. Banks
win because they get a guaranteed loan. Individuals
win because they have an easy way to get a loan,
perhaps below "signature loan" rates (since they are
guaranteed). The EAA wins because they are leveraging
a little bit of money into a lot of conversions and if
done correctly is self-sustaining. 

Anyone have any feedback? 

Thanks, 

Todd Martin 
VP, FVEAA 
1997 Solectria Force 



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## EVDL List (Jul 27, 2007)

----- Original Message ----- 
From: "Todd Martin" <[email protected]>
To: <[email protected]>
Cc: <[email protected]>
Sent: Friday, November 30, 2007 12:52 PM
Subject: [EVDL] EV Conversion Financing


> After reading a recent post saying roughly "do it
> yourself, hire someone, or stop expecting an EV for
> free", I got to thinking about EV conversion
> financing.
>
> When I bought my Force, I was lucky enough to have a
> local Credit Union give me a signature loan to
> purchase the vehicle (at 10.5% interest over 2 years).
> Used car loans are difficult to apply to an EV since
> they don't fit the usual categories that banks are
> accustomed too. Also, they are sold typically by
> individuals instead of used car lots. The problem is
> compounded with a conversion kit, since a bank would
> have trouble accepting the parts as collateral on the
> loan. Remember, not every person that tries to make
> an EV conversion succeeds! Even when they do, it
> often takes far longer than anticipated.
>
> What we need is a financial institution that is
> interested in this issue.
>
> Here is what I propose:
>
> The Electric Auto Association (EAA) or some similar EV
> advocacy group sets up a trust fund. Individuals
> purchase a "private EV loan insurance" from the EAA to
> guarantee their EV conversion loan that is underwriten
> by a Bank. This would be similar to Private Mortgage
> Insurance, for people who don't have enough down
> payment to qualify for a home loan otherwise.
>
> The EAA gets paid a little bit of money from each
> individual that takes out one of these loans, which
> covers the "payout" of the occasional default. Banks
> win because they get a guaranteed loan. Individuals
> win because they have an easy way to get a loan,
> perhaps below "signature loan" rates (since they are
> guaranteed). The EAA wins because they are leveraging
> a little bit of money into a lot of conversions and if
> done correctly is self-sustaining.
>
> Anyone have any feedback?
> Hi Todd an' EVerybody;

Sounds like a good plan? Then you would be getting alot more for yur 39 
bux a year.The EAA would have a more active part of getting more EV'es out 
there?

Bob
> Thanks,
>
> Todd Martin
> VP, FVEAA
> 1997 Solectria Force
>
>
>
> 
> ____________________________________________________________________________________
> Be a better pen pal.
> Text or chat with friends inside Yahoo! Mail. See how. 
> http://overview.mail.yahoo.com/
>
> _______________________________________________
> For subscription options, see
> http://lists.sjsu.edu/mailman/listinfo/ev
>
>
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> 

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## EVDL List (Jul 27, 2007)

[No message]


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## EVDL List (Jul 27, 2007)

I think that's a great idea. Anything that gets the community more
involved in providing a solution would be good.

Another option that I think would be interesting to pursue would be
the "community financing" sites like Prosper. It has come up before
and I configured a "Custom Electric" Group there at one point, but I
never pushed it because I wasn't all that comfortable with pushing it
as the group founder. However, Prosper has recently reconfigured
things so that there is no incentive for me to mention the group...
SO, now I am comfortable mentioning it... weird huh? I think it is
still active if you want to go to the site and look for it and join
up. <http://www.prosper.com>

Anyway, if there are people interested in helping to finance OTHER
people's conversions/projects, there is a way. Nice thing is, you
stand to help the community while also making some interest on the
money that you are risking.

Cheers,

Aaron Choate



> Todd Martin <[email protected]> wrote:
> > After reading a recent post saying roughly "do it
> > yourself, hire someone, or stop expecting an EV for
> > free", I got to thinking about EV conversion
> ...


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