Tesla Sweetens the Model S Lease/Finance Deal by a Bit
Amidst criticism from the media and public, Tesla Motors decided to tweak its "revolutionary" Model S lease/finance deal.
Musk Tweets It's Time to Fix Some Mistakes
Word of this first came yesterday when Tesla CEO Elon Musk Tweet that the automaker would "up the ante" and "fix some mistakes."
The fixes we see here are slight, mainly the residual value increases from 43% to 50%, a figure which Musk still personally guarantees. Additional, "longer term loans" (72 months versus 63) are available, which decrease monthly payments down to a "monthly rate of $580 taking only gasoline savings into account."
Additional detail are forthcoming, but with Tesla's website currently down for an update, we'll refer you to the automaker's press release below:
"Tesla Motors announced today that it is raising the Model S resale value guarantee to be the highest of any premium sedan brand made in volume (excludes rare, low volume or limited edition vehicles). Buying a Model S through the Tesla financing offering now comes with a guarantee that the resale value will be higher than that of BMW, Audi, Mercedes, Lexus or Jaguar."
"To protect people that have already purchased a Model S via this program, the guarantee will extend retroactively to anyone that made use of Tesla financing, created in partnership with US Bank and Wells Fargo, from when it was first announced on April 2, 2013. As with the prior resale guarantee, this higher number is also backed personally by Tesla CEO Elon Musk to give owners complete peace of mind about the long term value of the product."
“We appreciate the feedback from a number of journalists and customers that the first version of our financing product wasn’t quite right,” said Tesla Co-founder & CEO Elon Musk. “They were right, so we are fixing it and, moreover, upping the ante by providing the best resale value guarantee in the automotive industry. The Model S is rated by Motor Trend, Automobile Magazine and many others as the best car of 2013, so it should naturally therefore have the highest resale value.”
"In addition, our financing partners have agreed to provide longer term loans that reduce the monthly payment considerably. Those who buy the Model S electric car for personal use will now pay a monthly rate of $580 taking only gasoline savings into account. When purchased via a business, assuming 70% of miles are for business use, the depreciation benefit further reduces the effective monthly cost of owning a Model S down to $315."
"For those in careers that have a significant cost of time, such as doctors, lawyers, consultants and executives, the Tesla financial calculator makes it easy to factor in the value of time saved by being able to use the carpool lane or avoid trips to the gas station. However, this is now selected off by default and the above numbers do not include any consideration of time saved."