• Sign in to follow this  
    Followers 0

    Tesla Announces A New "Revolutionary" Leasing Program



    By William Maley

    Staff Writer - CheersandGears.com

    April 3, 2013

    Yesterday, Tesla announced a new, more affordable way to get behind the wheel of a Model S. Its what Tesla calls a "revolutionary new finance product" that combine the "best aspects of car leasing and ownership." How affordable are we talking about? Tesla was throwing a cost of less than $500 per month*.

    How does this product work? From Tesla's press release,

    • US Bank and Wells Fargo have agreed to provide 10% down financing for purchase of a Model S (on approved credit)
    • The 10% down payment is covered or more than covered by US Federal and state tax credits ranging from $7,500 to $15,000. New Jersey, Washington and DC also have no sales tax for electric vehicles. These advantages are not available when leasing.
    • When considering the savings from using electricity instead of gasoline, depreciation benefits and other factors, the true net out of pocket cost to own a mid-range Model S drops to less than $500 per month.
    • After 36 months, you have the right, but not the obligation to sell your Model S to Tesla for the same residual value percentage as the iconic Mercedes S Class, one of the finest premium sedans in the world, made by Daimler (also a Tesla partner and investor).
    • Not only is Tesla guaranteeing that resale value, but Tesla CEO Elon Musk is personally standing behind that guarantee to give customers absolute peace of mind about the value of the asset they are purchasing.

    Note a key phase in that quote. "When considering the savings from using electricity instead of gasoline, depreciation benefits and other factors, the true net out of pocket cost to own a mid-range Model S drops to less than $500 per month." In other words, they're factoring cost of ownership into the payment.

    Tesla has a calculator on their site that shows Effective Monthly Cost and the actual payment you'll be making. Using myself as an example, here are the Effective Monthly Costs and payments for the three Model S models.

    • 60 kWh: $866 (effective), $1,051 (payment)
    • 85 kWh: $1,042 (effective), $1,199 (payment)
    • 85 kWh Performance: $1,305 (effective), $1,421 (payment)

    *Note: Payments are based a 2.95% APR, 10% down payment, and 66-month term loan, excluding sales tax and registration.

    The big question of course is will anyone get that magical $500 per month payment or not.

    I've only scratched the surface on this. Motor Authority has an in-depth article on Tesla's math that I recommend you check out.

    In the meantime, you can check out Tesla's press release on the next page.

    Source: Tesla

    William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.comor you can follow him on twitter at @realmudmonster.

    Press Release is on Page 2


    Tesla Unveils Revolutionary New Finance Product

    Combines Best Aspects of Car Leasing and Ownership

    PALO ALTO, Calif. – April 2, 2013 – Tesla Motors announced today that, in partnership with Wells Fargo and US Bank, it has created a revolutionary automotive financing product that provides the best elements of ownership and leasing to Model S customers.

    Most people throughout the world prefer to own their belongings, rather than rent what is essentially someone else's property via a lease. However, leases do provide some key benefits, particularly a low initial payment, tax deductions, lower risk on resale value and the convenience of returning a car without the hassle of reselling it personally.

    Working with some of the largest and most respected banks in the country, Tesla has been able to create a new kind of financing product that combines the surety and comfort of ownership with all the advantages of a traditional lease. Like the Model S, this product was created from the ground up to provide maximum benefit to consumers, rather than simply duplicating other financing programs that tend to favor companies at the expense of the individual.

    How does it work?

    • US Bank and Wells Fargo have agreed to provide 10% down financing for purchase of a Model S (on approved credit)
    • The 10% down payment is covered or more than covered by US Federal and state tax credits ranging from $7,500 to $15,000. New Jersey, Washington and DC also have no sales tax for electric vehicles. These advantages are not available when leasing.
    • When considering the savings from using electricity instead of gasoline, depreciation benefits and other factors, the true net out of pocket cost to own a mid-range Model S drops to less than $500 per month.
    • After 36 months, you have the right, but not the obligation to sell your Model S to Tesla for the same residual value percentage as the iconic Mercedes S Class, one of the finest premium sedans in the world, made by Daimler (also a Tesla partner and investor).
    • Not only is Tesla guaranteeing that resale value, but Tesla CEO Elon Musk is personally standing behind that guarantee to give customers absolute peace of mind about the value of the asset they are purchasing.

    0


    Sign in to follow this  
    Followers 0


    User Feedback


    This is a ugly mess that will cause more damage than good and except for the upper 10%, I do not see people doing this unless they are that stupid for wanting to drive one of these auto's.

    0

    Share this comment


    Link to comment
    Share on other sites

    This is a ugly mess that will cause more damage than good and except for the upper 10%, I do not see people doing this unless they are that stupid for wanting to drive one of these auto's.

    ?

    0

    Share this comment


    Link to comment
    Share on other sites

    if someone wanted to throw away an assload of money, they should buy my house. Oh wait, i already subsidized that loss.

    what is the end of Tesla? At what level of sales and models do they either choke under their own weight, or get bought up (inevitable).

    0

    Share this comment


    Link to comment
    Share on other sites

    if someone wanted to throw away an assload of money, they should buy my house. Oh wait, i already subsidized that loss.

    what is the end of Tesla? At what level of sales and models do they either choke under their own weight, or get bought up (inevitable).

    They're doing okay. In March, Model S was the best-selling car in its class, outselling large sedans like the S-Class, 7-series, A8, XJ, and LS; four-door coupes like the CLS, 6er, A7, and Panamera; as well as cheaper midsize sedans like the A6, XF, GS, and M. It's also the best-selling electric vehicle YTD, beating Volt and LEAF. Tesla is delivering 500+ a week now.

    0

    Share this comment


    Link to comment
    Share on other sites

    if someone wanted to throw away an assload of money, they should buy my house. Oh wait, i already subsidized that loss.

    what is the end of Tesla? At what level of sales and models do they either choke under their own weight, or get bought up (inevitable).

    They're doing okay. In March, Model S was the best-selling car in its class, outselling large sedans like the S-Class, 7-series, A8, XJ, and LS; four-door coupes like the CLS, 6er, A7, and Panamera; as well as cheaper midsize sedans like the A6, XF, GS, and M. It's also the best-selling electric vehicle YTD, beating Volt and LEAF. Tesla is delivering 500+ a week now.

    Are those actual deliveries or to resellers/dealerships?
    0

    Share this comment


    Link to comment
    Share on other sites

    Are those actual deliveries or to resellers/dealerships?

    Actual deliveries to customers. There are no dealerships, and all Model Ss are built to order.

    0

    Share this comment


    Link to comment
    Share on other sites

    That's fine and dandy for the wealthy people that can already afford this car. But it's out of reach to the lower and middle class. And wouldn't your monthly payment be higher the more electricity you use?

    Hopefully Tesla is working on a model that competes with a Honda Accord or Chevrolet Malibu as those are the cars that the general population can afford.

    Edited by J Reinhardt
    0

    Share this comment


    Link to comment
    Share on other sites

    Counting only fuel, cost per mile for a pure electric car is much lower than cost per mile for a gasoline powered car. What Tesla is trying to say is that the effective cost per month for a Model S is around $500 when you consider your savings in gasoline.

    The big thing I'm noticing about Teslas is they are grabbing non-Greenie people. These aren't Pruis drivers trading in for a Tesla, these are 5-series drivers, S-class drivers and the like. They aren't buying it because it is green, they are buying it because it is a great car, drives great, and their total cost is less than their 550i for similar performance.

    0

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

      Only 75 emoticons maximum are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor




  • Popular Stories

  • Today's Birthdays

    1. Bandit '79
      Bandit '79
      (44 years old)
    2. Ur_pimp
      Ur_pimp
      (27 years old)
  • Similar Content

    • By dfelt
      First Video of Tesla 3
       
    • By dfelt
      G. David Felt - Staff Writer Alternative Energy - www.cheersandgears.com
      Tesla Officially in Trouble, Business Insider Says!

      To quote Business Insider final comments on Tesla and the Chevy Bolt:
      "Clearly, Tesla would be in less trouble if the Chevy Bolt were a bad car. But it isn't. Teslas have always blown me away. The Bolt blew me away for different reasons. I just hope Tesla is prepared to take this into account." 
      Matthew is a Business Insider senior correspondent who covers transportation and as a fan of Tesla was excited to check out a Chevy BOLT as comparison to the Tesla. On a recent trip to california he took time to visit the closet Chevrolet Dealer to his hotel and this is what he found.
      He states that to borrow Barkley's line, "Tesla is in trouble." You have one of the world's biggest auto companies that is known for killing the electric auto stepping off the sidelines and actually committing considerable resources to building a long range EV where it can afford to lose money on it long term till the market changes. Tesla has 400,000 plus pre-orders, but is burning through cash by the billions and while the launch of the Tesla 3 is near and Tesla still has Sexy much like Apple to an iPhone. Tesla does not have the depth of customer auto experience to pull from and as the author points out, Tesla balance sheet is precarious as it is based on raising funds on a growth story. The author goes onto say that no one will cross shop a Tesla S or X with the Chevy BOLT. They will due to limited options cross shop the Tesla 3 to the Bolt.
      To pull some interesting statements from the story, the author had the following to say:
      "I found it more fun to drive than both the Tesla Model S and the Model X, but not the original Roadster, a much smaller vehicle."
      "The Bolt is plenty fast for most people."
      "GM isn't going to overwhelm Tesla with Bolt sales. I actually think the Model 3 will greatly outsell the Bolt once Tesla's car arrives. However, it's also possible that if the Model 3 is delayed or is slow to ramp up, Chevy will be preparing a mid-cycle refresh of the Bolt before Model 3 sales start to achieve some major momentum. In other words, GM will always be ahead, and the company — barring another massive financial meltdown — will never stop putting the Bolt up against the Model 3."
      BI covered the BOLT in follow stories with the next one being more of an official review that starts off with covering the auto with the following statement: "A platform, not business as usual!" 
      From ride-hailing to ride-sharing, self driving Chevy has delivered an auto for the future that gives GM options on how they build and expand their EV lineup. BI took delivery of their white Premier BOLT just before the blizzard that hit NY. Clearly a compact-crossover-hatchback look, design is what the magazine employees felt it was and is. Surprising the BI reviewers was the amount of cargo the auto can hold and how well it handled 4 people and grocery getting. BI states that GM has told them the next addition to the BOLT lineup will be a larger auto that can accommodate 5 or more people. An exceptionally well executed minimalist design that comes with an interior that feels more premium in comparison to auto's this size in the past from GM that felt clearly parts bin cheap. The review goes on to talk about how setting the front seat for a 6'4" tall driver and getting in the back with room ahead of the knees for the same size person is a nice welcome addition to such a compact auto. Heated steering wheel was welcomed by all. Apple CarPlay and Android Auto kept everyone happily connected to their phone while driving.
      The final statement to quote from the review is as follows:
      "We were impressed with the Bolt, as a car, as an electric car, and as a mobility concept. In many ways, it is GM's post-bankruptcy masterpiece, a real feather in the cap of CEO Mary Barra and her executive team, who took what the company had achieved with its ill-fated EV-1 back in the 1990s and turned it up to 11. 
      I also flat-out loved driving it. I blasted in and out of New York City twice, rocketed around the streets of Gotham, darting through traffic, and cruised along the highways of New Jersey. I also enjoyed just driving it around the quiet streets of the suburb where I live.
      The steering is quick and responsive, and the handling is sharp enough to provide the confidence you need when surfing that sweet EV torque.
      The single-pedal mode is also very cool — I dug not using the brakes at all for extended excursions in my town. After a bit of practice, you get into a kind of Zen state with it. 
      Not a single person asked me about the car, and that can be chalked up to the ho-hum design. But I didn't care. I was lovin' it. Plain and simple, the Bolt is fun."
      Here is where we have overlap between story #2 and Story #3 which covers the 7 Killer Features:
      Dual Screens- 10.2" touch screen infotainment center & an 8" drivers console display which are totally customizable. Auto's wireless charging console. BOLT App allowing you to be connected to your auto at all times. Five cameras: front, rear, side mirrors and their 360 camera. 9hr full charge time from a 240 volt charger. 25 miles per hour, faster with Level 3 DC charging. Lane Keep assist feature. Modern Seat design allowing for maximum space inside. Over all these writeups show that GM has delivered a superior auto to the Prius, Leaf, 500e, etc. The future will be bright for the BOLT as GM move the platform forward.

      BI Story #1
      BI Story #2
      BI Story #3
    • By William Maley
      Tesla will be dropping the Model S 60 and 60 D next month. According to Electrek, Tesla sent out emails to potential buyers last week letting them know that they have until April 16th to place an order for the 60. 
      The 60-kWh version of the Model S was an odd model since it was equipped with a 75kWh battery pack that was limited via software to act like a smaller battery. Tesla offered the ability to unlock the full capacity of the battery for only $9.500.
      Tesla confirmed this and explained the reason they are dropping the 60 is most buyers tend to go for the battery upgrade and they want to streamline the ordering process.
      Source: Electrek

      View full article
    • By William Maley
      Tesla will be dropping the Model S 60 and 60 D next month. According to Electrek, Tesla sent out emails to potential buyers last week letting them know that they have until April 16th to place an order for the 60. 
      The 60-kWh version of the Model S was an odd model since it was equipped with a 75kWh battery pack that was limited via software to act like a smaller battery. Tesla offered the ability to unlock the full capacity of the battery for only $9.500.
      Tesla confirmed this and explained the reason they are dropping the 60 is most buyers tend to go for the battery upgrade and they want to streamline the ordering process.
      Source: Electrek
  • Recent Status Updates

  • Who's Online (See full list)