Xos partners with DLL on electric truck financing

Lease program aims to help fleets reduce higher upfront costs tied to electric vehicles

(Photo credit: Xos)

In an effort to overcome the cost barriers to buying electric vehicles, electric truck maker Xos Trucks Inc. on Tuesday announced a partnership with DLL to help finance the leasing of its all-electric commercial vehicles.

DLL is a global asset finance company and subsidiary of Rabobank Group.

The Xos Financing program will offer two types of full-service leases of the company’s electric vehicles and charging equipment to fleets, helping them reduce energy, field and maintenance costs, a spokesperson said in an email to FreightWaves.

An operating lease will allow fleets to lease an electric vehicle without significant upfront investment. A capital lease targets the same goal but on a longer term. 

The terms are dependent on the credit of the fleet but will generally run for 24 to 72 months.

“With increased attention on climate change and the West Coast coming off its worst year of wildfires in history, transitioning to zero-emission electric vehicles is more important now than ever,” Xos CEO Dakota Semler said in an emailed statement to FreightWaves.

“We’re offering the option for operating and capital leases so we can help fleets accelerate their transition to fully electric vehicles.”

Los Angeles-based Xos got its start as a custom electric chassis maker for Class 8 trucks. Its first product was a fully electric semi called the ET-One. 

The company has since pivoted to medium-duty vehicles, deploying Xos Class 6 vehicles with customers including UPS and cash-in-transit company Loomis. 

“We are thrilled to partner with Xos Trucks to help fund in the transition to fully electric vehicles,” said Michael Hart, DLL business development manager, in a press statement.

“Clean technology and transportation is a very important part of our portfolio and we are happy to be working with a leader in the electric vehicle industry,” Hart said.

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Linda Baker, Senior Environment and Technology Reporter

Linda Baker is a FreightWaves senior reporter based in Portland, Oregon. Her beat includes autonomous vehicles, the startup scene, clean trucking, and emissions regulations. Please send tips and story ideas to lbaker@freightwaves.com.