BofA to Offer Financing for Residential Electric Vehicle Chargers

Rhea-AI Summary

Bank of America (BAC) announced a new financing option allowing consumers to finance electric vehicle (EV) chargers alongside auto loans. This initiative is in response to increasing demand for convenient EV ownership solutions. By 2030, the U.S. is projected to host nearly 27.5 million at-home chargers, up from 1.3 million in 2021. At-home charging stations cost between $200 and $2,000. The financing aligns with the Inflation Reduction Act's aim to boost clean energy technologies. BAC collaborates with over 10,000 dealers nationwide, promoting a substantial increase in EVs from 2.4 million in 2021 to an anticipated 26.4 million by 2030.

Positive

• New financing option for EV chargers enhances customer convenience.
• Growing consumer demand for electric vehicles may lead to increased loan uptake.
• Strategic alignment with government incentives under the Inflation Reduction Act.
• Expected significant growth in the EV market, potentially boosting BAC's loan portfolio.

Negative

• None.

New loan option enables consumers to finance electric vehicles and chargers together

CHARLOTTE, N.C., Feb. 8, 2023 /PRNewswire/ -- Bank of America announced today that it will offer consumers the option of financing their residential electric vehicle chargers alongside their auto loans. Based on growing client demand for streamlined solutions that make driving an electric car easier and more convenient, Bank of America now offers dealers and manufacturers the option of letting consumers finance these chargers.

Demand for the charging units, by which drivers charge their cars at home, is expected to grow in the U.S. to nearly 27.5 million by 2030, up from just 1.3 million in 2021.¹ At-home charging stations range in price from $200 to $2,000 in the US.

"We aim to help people 'go electric' by providing financing for this critical accessory, which allows clients to charge their vehicles in their own homes and at convenient times," said Fabien Thierry, head of Consumer Vehicle Products for Bank of America.

The Inflation Reduction Act, signed into law in August 2022, "provided a significant investment in clean energy and transportation technologies, including a broad array of EV incentives, and is expected to accelerate consumer demand," Thierry added. Electric vehicles (EV) on U.S. roads are expected reach 26.4 million by 2030, substantially higher than the 2.4 million at the end of 2021.²

Bank of America works with over 10,000 dealers and multiple EV manufacturers nationwide. Clients interested in financing the cost of their electric vehicle chargers should check with their dealer to see if this option is available.

Bank of America's support for electric vehicles and sustainable finance

Bank of America has set tangible sustainable finance goals and has made measurable progress towards them. In 2021, the bank set a goal to achieve net-zero greenhouse gas emissions in financing activities, operations and supply chain before 2050. As part of the company's commitment to deploy $1.5 trillion in sustainable finance by 2030, the Bank mobilized and deployed approximately $250 billion of capital aligned with the United Nations Sustainability Development Goals (UN SDGs) in 2021.

This financing initiative is the latest in a series of actions the Bank has taken to facilitate the transition to electric cars:

• In partnership with Electrify America, BofA plans to more than double the number of financial centers equipped with electric-vehicle (EV) charging stations by the end of 2023. (May 2022)
• BofA provides eligible teammates $4,000 for a purchase or $2,000 for a lease of a qualified new all-electric passenger car or truck. (July 2022)
• Created Lucid Financial Services with Lucid Group to provide a quick and easy digital financing to Lucid Air customers. (June 2022)
• Executed an agreement with Polestar Automotive USA Inc., the electric performance car brand from Sweden, to support the establishment of Polestar Financial Services, which provides a variety of consumer finance and lease offerings for Polestar customers.
• Celebrated World EV Day (September 9th) in 2021 and 2022 through EVolution, a public "virtual convention center" showcasing vehicles from various EV manufacturers, technology advancements and exclusive interviews with key industry leaders.

Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 3,900 retail financial centers, approximately 16,000 ATM and award-winning digital banking with approximately 56 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and other important information, visit Bank of America newsroom and register for news email alerts.

Reporters May Contact:
Susan Atran, Bank of America
Phone: 646.599.3300
susan.atran@bofa.com

1-Statista – McKinsey April 2022
2-Edison Electric Institute's Electric Vehicles Sales and the Charging Infrastructure Required Through 2030 (PDF) – June 2022

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SOURCE Bank of America Corporation

FAQ

What new financing option has Bank of America (BAC) introduced?

Bank of America has introduced a financing option allowing consumers to finance electric vehicle chargers alongside auto loans.

How many electric vehicle chargers are expected in the U.S. by 2030?

By 2030, the U.S. is projected to have nearly 27.5 million at-home electric vehicle chargers.

What is the cost range for at-home electric vehicle charging stations?

At-home electric vehicle charging stations range in cost from $200 to $2,000 in the U.S.

How does the new financing option support electric vehicle adoption?

The financing option aims to make it more convenient for consumers to charge their electric vehicles at home, thereby promoting EV adoption.

What is the projected growth of electric vehicles on U.S. roads by 2030?

Electric vehicles on U.S. roads are expected to grow to 26.4 million by 2030, up from 2.4 million in 2021.