Kevin Jones / FleetOwner
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Mack offers 'pay as you go' financing on new MD Electric trucks

Nov. 1, 2023
ElectriFi Subscription is based on miles driven with chassis and truck body, charging, physical damage insurance, and maintenance costs bundled into a single monthly payment.

SONOMA, California—A comprehensive mileage-based subscription fee and partnerships with leading charging providers will provide Mack Trucks a competitive advantage in the transition to electric commercial vehicles, company representatives explained here this week.

"We're bringing the buying power of Mack Trucks to the customer with many solutions because it's a new space and it's innovating still," George Fotopoulos, Mack VP of e-mobility business unit leader, told FleetOwner. "These are the secret sauces on top of the vehicle that will make us successful."

To offset some of the uncertainty around EVs, Mack Financial Services now offers ElectriFi Subscription, a usage-based leasing option exclusive to new Mack MD Electric models.

ElectriFi Subscription allows customers "to pay as they go" for miles driven with chassis and truck body, charging, applicable incentives, physical damage insurance, and maintenance costs for the term of the agreement bundled into a single monthly payment for simplification.

ElectriFi Subscription reduces the customer's upfront investment while lowering their long-term risk with the option to walk away at the end of the term, as Fotopoulos explained to trucking journalists ahead of a ride-and-drive event at the Sonoma Raceway.

Terms are flexible, starting at three years and with an option to extend up to a total term of six years. The cost, based on a sliding scale, becomes lower as the miles rise.

"It makes the decision to go EV a no-brainer," Fotopoulos said.

See also: Mack debuts MD Electric for Classes 6-7

Essentially, the subscription model takes traditional residual values out of the total cost of ownership equation—since, at this early stage, the value of a three- or four- or five-year-old electric truck is a best guess by financial analysts. As with calculating the lease payments on Mack's electric refuse truck, the LR model, Mack is making some assumptions and adjusting values to support affordable payments for the transition, Fotopoulos explained.

"We're definitely putting some skin in the game. Those assets are on our balance sheets, not the customer's balance sheet," he said. "We're in it to take some risks, and we're definitely in it to win it, across the board, with these deals."

The ElectriFi Subscription also provides access to Mack's suite of uptime services, including telematics and Mack OneCall 24/7 roadside service and support.

Along with the ElectriFi Subscription option, Mack Financial Services also offers ElectriFi Infrastructure and ElectriFi Lease. Mack Trucks and Mack Financial Services can also advise on incentives for infrastructure.

ElectriFi Infrastructure is a turnkey solution available for all purchases or leases. Mack, along with third-party partners, will assist customers in developing the charging station design, installation, construction, hardware, and software needed for new BEV charging facilities. All-inclusive financing is available with this option, provided the vehicles are funded by Mack Financial Services, including up to a 60-month loan.

ElectriFi Lease enables customers to add EVs into their fleets with reduced upfront investment. Customers have access to Mack telematics through the Mack Ultra Service Contract. Mack's Route Support Services team will help customers analyze existing routes, infrastructure upgrades, and seamless integration. This offer has full lifecycle financing options and renewable five-year terms.

The Mack Ultra Service Contract is a standard five-year comprehensive bumper-to-bumper service contract for the Mack MD Electric and the Mack LR Electric refuse model. The contract includes telematics with battery monitoring; a high-voltage battery performance guarantee; all scheduled maintenance; all preventive maintenance; all repairs excluding accidents, tires and glass; towing for warrantable failure to the nearest Mack Certified Electric Vehicle (EV) Dealer; and Mack OneCall.

Mack introduced the Mack MD Electric in March. The MD Electric complements its diesel-powered MD model sibling, introduced in 2020.

The MD Electric is available for order, with deliveries to begin by the end of the year. As with its diesel counterpart, it is available in Class 6 and Class 7 ratings. The Class 6 has a gross vehicle weight rating of 25,995 lb., and the Class 7 model has a GVWR of 33,000 lb. Both models are exempt from the 12% Federal Excise Tax (FET).

The MD Electric is designed to meet the needs of trucking applications requiring dry van/refrigerated, stake/flatbed, and dump vocations. The MDE6 model does not require a commercial driver's license to operate for non-hazardous payloads, according to Mack.

The MD Electric is supported by Mack Certified Electric Vehicle Dealers. To become EV-certified, dealers must meet stringent safety, infrastructure, charging, and tooling requirements. 

About the Author

Kevin Jones | Editor

Kevin has served as editor-in-chief of Trailer/Body Builders magazine since 2017—just the third editor in the magazine’s 60 years. He is also editorial director for Endeavor Business Media’s Commercial Vehicle group, which includes FleetOwner, Bulk Transporter, Refrigerated Transporter, American Trucker, and Fleet Maintenance magazines and websites.

Working from Little Rock, Kevin has covered trucking and manufacturing for 15 years. His writing and commentary about the trucking industry and, previously, business and government, has been recognized with numerous state, regional, and national journalism awards.

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