Start-up electric vehicle (EV) manufacturer. Fisker (NYSE: FSR) was electric on the stock exchange on Thursday. A partnership with one of this country’s top banks allows the company to offer customers a low-cost financing option. The potential popularity of this initiative excited investors, and in response they traded Fisker shares up nearly 5% that day.
1.99% financing promised – but for a limited time
Through its Fisker Finance unit, the company is introducing a low-cost auto loan program for qualified customers. This would allow such people to own one of the company’s luxury Ocean SUVs for an annual percentage rate of just 1.99% for a 60-month loan.
The program is offered through a partnership with the banking giant JPMorgan Chase.
The rates are essentially a teaser to quickly increase sales and generate interest and publicity. Fisker describes them as “special rates,” adding that they will be available until January 10, 2024.
As is common practice in the automotive industry today, potential Ocean owners can apply for such financing through the Fisker Finance portal. According to the EV specialist, the system can make a financing decision within minutes. There is of course no guarantee that an applicant will receive the favorable rates or be offered a loan at all.
Fisker says its finance department offers loans up to an annual interest rate of 24.99%.
It could be the deciding factor for fence sitters
In these days of (relatively) high interest rates across our economy, a figure of 1.99% is certainly tempting. It could very well move the needle for people on the fence about an expensive ocean; at the very least it will generate favorable publicity for Fisker. Investors were right to cheer the scrappy company’s latest move.
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has no positions in the stocks mentioned. The Motley Fool holds and recommends positions in JPMorgan Chase. The Motley Fool has a disclosure policy.
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