Upstart electric vehicle (EV) manufacturer Fisker (FSRN -12.70%) was electric on the stock exchange Thursday. Thanks to a partnership with one of this country's top banks, the company is able to provide an inexpensive financing option for customers. The potential popularity of this initiative excited investors, and they traded Fisker stock up by nearly 5% on the day in response.
1.99% financing promised -- but for a limited time
Through its Fisker Finance unit, the company is rolling out a low-cost auto loan program for qualified customers. This would allow such folks to own one of the company's high-end Ocean SUVs for an annual percentage rate (APR) as low as 1.99% for a 60-month loan.
The program is being offered through a partnership with banking giant JPMorgan Chase.
The rates are basically a teaser to get sales juiced quickly and to drum up interest and publicity. Fisker is describing them as "special rates," adding that they will be available until Jan. 10, 2024.
As is common in the auto industry these days, potential Ocean owners can apply for such financing through the Fisker Finance portal. According to the EV specialist, the system can render a financing decision within minutes. There is, of course, no guarantee an applicant will receive the favorable rates or be offered a loan at all.
Fisker says its finance unit offers loans of up to 24.99% APR.
It might be the deciding factor for fence-sitters
In these days of (relatively) elevated interest rates throughout our economy, a figure like 1.99% is certainly tempting. It may well move the needle for people who are on the fence about ponying up for a pricey Ocean; at the very least, it will produce favorable publicity for Fisker. Investors were right to cheer the scrappy company's latest move.
