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Do You Need the Buy Back Guarantee?

Discussion in 'Model S: Ordering, Production, Delivery' started by SOCALS, Apr 9, 2014.


    SOCALS Member

    Apr 5, 2014
    Southern California
    Please see below my response on another post on why we do not need the guarantee. Thoughts?

    " The Models S has been in production for almost 2 years already (1ST Deliveries sometime late Spring/early Summer 2012). Just like the iPhone, which was released in 2007, I do not see the Model S becoming obsolete. Yes the technology change but the basic shell mold or matrix is relatively similar tot he original. The internal working of the item is much improved as technology progresses but again, the original shape is only updated and freshened as new molding technology improves. Having said this, how can the Model S go Obsolete when it is based on the ability to technically improve by applying TESLA updates. It is a car based on technology that can be updated with learning curves and based on real time data collection. The only part in the Models S susceptible to becoming Obsolete is the Battery Pack which has a limited life anyway. Batteries have come a long way but they do not radically change over a three year period to make the car Obsolete. In the end the shape of the Model S is dictated by the size of the battery it has to carry and that's why it is one of the longest widest sedans out there.

    The conclusion of my lecture, if the market trend continues over the next three years and knowing that the Model S and the new Model X for that matter will have a slow increase in interest (I am sure more electric and fuel cell cars will be introduced over the next three years, but the price of the TESLA will always be on the high end), in 3 years your Model S can be worth a high percentage of what you paid for it today. Cars delivered in 2012 (almost two years old) are being listed for near today's MSRP. Yes the Model S may change in three years and get other than technology improvements, but to me the C6 Corvette, introduced in 2005, still looks as nice as the 2014 C7 Stingray.

    In the end, the Model S is a high Value Car because the wear and tear mechanical parts in it are fairly inexpensive compared to the ICE car. The car improves as your ownership period increase via the TESLA upgrades (the only car that has this feature today). In three years I would think there will be available aftermarket drive motors (and other mechanical parts as well) for the Model S that will cost no more than a couple of thousand dollars and will be manufactured by any of the very reputable industrial motor manufacturers.

    Finance at the low rates, you will not need anybody's buy back guarantee as people will want your car (Had I found a two year old one with asking price of 10% less than what I ordered mine for, I would have grabbed it!)"

    Ordered/Confirmed4/5/2014 - S85Grey/Grey Leather/Panoramic Roof/Supercharger/Dual Charger/Tech Package/ParkingSensors/ Fog Lights/Parcel Shelf
  2. MiddKid

    MiddKid Member

    Jan 3, 2014
    In that same thread I posted the real right answer here, everyone needs to make the call appropriate for them:

    "I view it slightly differently (as someone who just Financed through Tesla just to get the guarantee). In my mind you can't compare it to a Toyota resale as with that you are getting a known commodity. With a Tesla, anything but.

    First there are the technology questions...of which there are tons. What if 3 years from now EV tech has exploded and the original Model Ss don't age well? There is a jump in battery tech giving even mid-priced EVs 400miles of range. Who knows. This is market segment is filled with so many unknowns. Competition is good! But accelerated competition 3 years from now could make our MSs look like the beta model.

    Then there are public perception questions with all this unknown tech. We saw it (and I still hear the jokes) about the fires. My Dad had an Audi 5000 back in the day of the "unintended acceleration" recalls...we watched his resale value plummet despite it arguably being WAY overblown in the media.

    The loan rate difference for me was 0.3%...and for me that difference was worth the piece of mind that I had an "out" after 3 years if needed. I don't like uncertainty...and this insurance made the $100k investment a bit more digestible."

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