Mack Trucks Launches Subscription-Based Leasing for MD Electric
[Stay on top of transportation news: Get TTNews in your inbox.]
SONOMA, Calif. — Mack Trucks on Oct. 30 launched ElectriFi Subscription, a usage-based leasing option for the MD Electric truck, saying the service will allow customers to adopt battery-electric vehicle technology more easily.
Mack Trucks introduced the MD Electric in March. Its sibling, the diesel-powered MD Series, was introduced in 2020. The LR Electric refuse truck was the company’s first step into battery-electric trucks and was unveiled in March 2022.
ElectriFi Subscription allows customers to “pay as they go” based on miles driven on a monthly basis. Chassis and body, charging, applicable incentives, physical damage — but not liability — insurance and maintenance costs are bundled into a monthly payment.
ElectriFi Subscription reduces customers’ upfront investment while lowering their long-term risk with the option to walk away at the end of the term, the Volvo Group unit said.
Subscriptions start at three years, with an option to extend as far out as six, the company said.
Fotopoulos
Customers receive access to Mack’s Uptime suite as part of the package, including telematics and Mack OneCall, the company’s 24/7 roadside service.
At the end of the term, customers can renew their subscription, purchase the truck or end their contract.
“Mack and Mack Financial Services have given customers several optimized financing options that will help support their businesses,” George Fotopoulos, e-mobility business unit leader, said in a statement unveiling the product.
“ElectriFi Subscription, the other financing options and the Mack Ultra Service Contract were designed to help remove any hesitancy about financing, service and support that customers might experience as they electrify their fleets,” he added.
Volvo's Keith Brandis and Eric Bond take an in-depth look at how the company's SuperTruck 2 improves freight efficiency. Tune in above or by going to RoadSigns.ttnews.com.
The minimum monthly mileage is 1,700 miles, and the subscription fee is calculated through a tier-based program. The initial rate is based on how long a customer’s chosen length of contract lasts.
ElectriFi Subscription is “truck as a service,” Fotopoulos said in an Oct. 30 presentation. “The more you use the vehicle, the lower your rate.
“The investment is quite high for an electric truck; [ElectriFi Subscription] takes that out of the equation. The more you commit, the less the cost gets.”
Planning the details of the subscription service took a little more than six months from start to finish, Logan Andrew, Volvo Financial Services’ electromobility territory finance manager, told Transport Topics at the event.
Want more news? Listen to today's daily briefing above or go here for more info
MD Electric is available in Classes 6-7 ratings. The Class 6 option has a gross vehicle weight rating of 25,995 pounds, and the Class 7 model has a GVWR of 33,000 pounds. It is offered in dry van/refrigerated, stake/flatbed and dump formats.
Mack Trucks started taking orders in the summer for the MD Electric, Fotopoulos said, adding that the production program is not full for this year.
There is no advantage to a customer’s order book place if a longer subscription contract is chosen, he said. The subscription model is only available for the MD Electric; it is not an option for the LR Electric or diesel trucks.
Any infrastructure required can be financed through Mack Trucks’ infrastructure loan group rather than the subscription service, Fotopoulos said.
Mack Financial Services launched a vehicle-as-a-service program for LR Electric purchases in February 2022.
