• 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

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

    ×   Your previous content has been restored.   Clear editor




  • Popular Stories

  • Popular Now

  • Today's Birthdays

    1. gmcbob
      gmcbob
      (42 years old)
  • Similar Content

    • By dfelt
      G. David Felt
      Staff Writer Alternative Energy - www.CheersandGears.com
       
      Tesla / Solarcity merger, Brilliant or Disaster?

      Tesla announced their intent to buy SolarCity and some screamed the sky is falling. Tesla moves forward with offering a complete home solution of Solar panels, battery bank and 220V charging for your Tesla and believes they have the future tied up in a single one stop shopping solution that beats all the other Auto OEMS.

      The merger final vote by Solarcity shareholders is scheduled for Nov 17th 2016. Yet with this deal not done yet, there are many that have divided into two camps, those that think this is brilliant such as reported by Barron's yesterday that ISS one of the largest outside analyst groups that advises shareholders on mergers gave it's blessing to what they believe is an outstanding tie up of two companies that can maximize return on investments. Barron's believes that Tesla has addressed all the concerns that allow for a successful merger of the two companies and a maximizing of complementary products.
      Barron's Story
      One CNBC story feels that this merger might even be a little late. They agree that Solarcity will provide about $1 Billion next year in revenue to the new merged company and add about $500 million in cash to the Tesla corporation over the next 3 years.
      CNBC Story
      Then you have the latest story also from CNBC where a different analyst believes this is nothing but one large mistake and that is due to what he sees as an impossible return on the investment. Yet even with that he also points out to strong supporters such as Ron Baron who ownes 1.5 million shares that see a 30 to 50 times return on the stock due to the merger. 
      CNBC Story 2
      Yet with all this,  “Playing Amish Paradise in my Tesla,” Musk shared with his 5.8 million Twitter followers on Sunday we have the man himself seeing a much simpler life for us all in the new EV world.
       
      So what is your thoughts on this whole merger and the new EV world Musk sees for us all?
       
    • By dfelt
      G. David Felt
      Staff Writer Alternative Energy - www.CheersandGears.com
       
      Tesla Ends Free Charging Jan 1st 2017

      Tesla has announced the end of their free supercharging for all new auto's starting January 1st 2017. CNBC has reported that Tesla has informed them that all auto's sold starting Jan 1st 2017 will only come with a free yearly use of 400KWh or equal to about 1000 miles of driving. After this users of their Supercharging stations will have to pay local electrical rate fee's up to a certain point. This is to allow Tesla to grow their north american network from the current 734 stations with 4600 superchargers. Their superchargers charge a 170 mile range in 30 min. Tesla also has stated that the cost to charge can and will fluctuate over time depending on the time of year and regional area due to the costs of electricity in that area. With Tesla planning to product annually 500,000 cars a year starting in 2018, many think this is necessary to grow. Others feel differently and further yet some wonder if they sell their existing Tesla S, does the life time of free charging transfer with the car to the new owner? This in itself could enhance resale of older tesla's built before January 1st 2017. 
      Tesla has stated that more defined details will be released by the end of 2016. At this time, if you want lifetime free charging, buy your Tesla S or X now and take delivery by April 17th 2017.
      CNBC story
    • By ccap41
      "Tesla has created its own glass technology group, CEO Elon Musk announced this week on a conference call, reports Eletrek. Not only will this special glass be used for solar roof tiles, but it will also have automotive applications. In fact, the first car to receive the new glass will be the Model 3, Musk confirmed.
      Last week, Tesla announced it would create actual solar roofs (as opposed to solar panels) that are highly durable and can provide power for homes. In a video posted to Twitter, Tesla showed off the strength of its new solar roof glass tiles. But the ultra-strong glass technology will apparently trickle down to the roof or windshield of the Model 3. The entry-level sedan offers a full-length glass roof spanning from the windshield to the rear window, making it the perfect vehicle for this tech. Then again, the Tesla Model S already features an open, airy panoramic roof, and the Model X has the largest glass panoramic windshield in production.
      Musk took to Twitter to explain the benefits of the special glass.
      Ads by ZINC                                                       The director of Tesla Glass is Mike Pilliod, who was a top materials engineer at Apple. He has patented innovations relating to glass, including glass touchscreens.
      Source: Eletrek, Business Insider "
      http://www.motortrend.com/news/tesla-model-3-use-glass-technology-solar-roofs/
      I just thought this was waaaay too cool not to share!
    • By dfelt
      G. David Felt
      Staff Writer Alternative Energy - www.CheersandGears.com
       
      Tesla Reports First Profit after 12 Quarterly Losses!

      Surprise, Surprise, Tesla posts a $22 million profit for it's latest quarter. How did Tesla do this?
      Wall Street Story
      WSJ reports that Tesla reports the following numbers:
      Selling pollution tax credits to other auto makers. Gross profit from the credits soared to $139 million from $39 million a year ago.
      Revenue is up to $2.3 billion from $936.8 million a year earlier.
      Tesla said it generated free cash flow, repaid $600 million in debt and finished September with $3.1 billion in cash, a decline of $162 million from the end of June.  
      Tesla also lowered its forecast for capital spending this year to $1.8 billion from $2.25 billion. About $1 billion of that spending could occur in the fourth quarter, it said.
      Shares were up 5% to $212.05 in after-hours trading on Wednesday.
      WSJ says this has been helped by Tesla's newest Model S version that starts now at $66,000 which contributed greatly to their bottom line as the Q3 was the first full quarter of Entry level Model S sales.
      Barclays auto analysts has stated that Tesla will need $2.5 billion through the end of 2017 for the Model 3 rollout and completion of the battery factory.
      WSJ Web Page Story
    • By William Maley
      Last year, Tesla gave the Los Angeles Police Department two Model S P85Ds to evaluate for possible duty as a police vehicle. It seems the LAPD were impressed that they have decided to equip one of the two models to duty as a patrol vehicle.
      NBC affiliate KNBC in Los Angeles reports that the LAPD is working with Tesla on an agreement to equip one of the Model Ss with the equipment needed for patrol duty - radios, computer, custody cage, and locking shotgun rack.
      "They will have an active role equipping this vehicle," said Vartan Yegiyan, LAPD's assistant commander of the Administrative Services Bureau - the group that oversees the vehicles of the department.
      Once equipped, the Model S will be put to the test with doing patrol work and possibly as a high-speed pursuit vehicle.
      No matter how the Model S fares in this test, it is still an expensive proposition for the department. Depending on the configuration, a Model S can upwards over $130,000 - this is before it is fitted with all the equipment needed for a police vehicle. The LAPD believes it could be about five years before they seriously consider replacing their conventional patrol vehicles with electrics.
      Source: KNBC
      Pic Credit: LAPD HQ on Twitter

      View full article
  • Recent Status Updates

  • Who's Online (See full list)