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Financing Services for the Electrification of Vehicle Fleets

GPEKS offers fleet managers the possibility to operate electric vehicles by providing them a financing solution comparable to leasing of vehicles for long term contracts of 10 years. Besides, we handle a complete due-diligence and act as a project coordinator.

We finance conversions of fleets to 100% electric vehicles (school buses, garbage trucks, taxis, utility trucks, commercial vehicles.. even ferry boats).

Our commercial proposition is simple. We offer the possibility for individuals and companies to pay for electric vehicle conversions or upgrades in such a way that that cost is lower than the cost of acquiring a new conventional vehicle of the same category, and we tie this with a 10 year contract where sell the (electric) fuel and provide a maintenance contract such that we guarantee that the fuel purchased for the EV will be at least 10% less than conventional fuel, and same with maintenance cost.

Here is an example of how our financing for EVs works. Let us say that someone is looking to buy a conventional new vehicle for $20,000 and that an equivalent class electric vehicle would cost $35,000 taking into account applicable carbon rebates for EVs. GPEKS offers to cover the difference ($15,000) plus offers a 10% discount based on the conventional base case vehicle price ($2,000), so the buyer only needs to pay  $20,000 - $2,000 = $18,000 for the electric vehicle conversion (if people want to use a used highly desirable conventional vehicle instead of a new EV). In exchange GPEKS charges two types of fees: an energy fee based on 90% of the per km cost equivalent of conventional fuel, with a minimum charge based on 1,000 km driven per month. So for example, if gasoline cost $1, and the equivalent class car fuel consumption is 7 L/100 km, the per km fee would be 90% of ( $1/L x 7L/100 km = $0.07/km) x 90%  = 6.3 c/km. If someone drives an average of 40 km a day or 1,200 km in month, he will pay $0.063/km x 1,200 km =  $75.6 to GPEKS ; and a monthly fee that corresponds to the 90% of the average maintenance cost on the engine and powertrain of a conventional vehicle. In the end, people end up saving 10% on the capital cost of a regular car, and 10% on the fuel cost (at least, on year 1). They also save 10% on maintenance costs. Since fuel cost are assumed to increase by at least 5% a year, our fee per km increases by 5% each year. We only work on 10-year contracts. With this contract, the battery and electric powertrain remains the property of GPEKS at all times. It is used as collateral and a lean for the value of the amount financed (corresponding to the battery and electric powertrain) is put on the vehicle. So if people finance the $18,000 initial cost with a traditional bank, the bank only owns the balance of the vehicle.