TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Is the resale value still around for US?

Discussion in 'Model S: Ordering, Production, Delivery' started by brkaus, Aug 31, 2015.

  1. brkaus

    brkaus Member

    Joined:
    Jul 8, 2014
    Messages:
    936
    I see no reference to it anymore. But it is referenced for other countries.
     
  2. WarrenInCA

    WarrenInCA Member

    Joined:
    Oct 4, 2014
    Messages:
    86
    Location:
    Scotts Valley, CA
    At the time of purchase, I was issued an agreement "Resale Value Guarantee". If you are interested in using Tesla financing for the purchase of a new Tesla, I would inquire about the Guarantee at the same time as you are working on the rest of the loan related paperwork.
     
  3. MsElectric

    MsElectric Active Member

    Joined:
    Oct 11, 2014
    Messages:
    1,611
    Location:
    New York
    Also note what they guaranteed was that the resale value will be on par with other premium cars.

    Currently the Model S resale values are holding higher than similarly priced premium cars and in the long term it might end up being similar to other premium cars such as the S Class.

    So in practical terms the resale value guarantee does not mean that much as all it means is that you have a rapidly depreciating asset that will depreciate like any other premium car.
     
  4. brkaus

    brkaus Member

    Joined:
    Jul 8, 2014
    Messages:
    936
    Yes, the guarantee was on par with other premium cars. It also ends up costing more due to financing and service requirements.

    Considering it as it would be nice to have a "floor" in case surprises come up. Specifically with service cost. I'm afraid it might become a problem as more cars come off warranty. There isn't currently a big enough sample set off warranty to know what will happen (IMHO).
     
  5. MsElectric

    MsElectric Active Member

    Joined:
    Oct 11, 2014
    Messages:
    1,611
    Location:
    New York
    I agree. I'm surprised how many people are putting so much emphasis into the resale value guarantee as I don't think it means much. It just means 3 years alter your car will be worth much less, just like any other premium car. If you want some idea about what your car will be worth after a certain number of years, just look up a similarly priced Mercedes S Class the same number of years old.
     
  6. brkaus

    brkaus Member

    Joined:
    Jul 8, 2014
    Messages:
    936
    True. I expect similar to a Mercedes S class or perhaps BMW. But those two brands have many years of history behind them, so there is still more risk with Tesla.

    I have contacted them to see if the deal is still around. Appears to have been replaced with the lease, but the lease doesn't look very favorable unless there are other circumstances that benefit from that sort of deal.
     
  7. S4WRXTTCS

    S4WRXTTCS Active Member

    Joined:
    May 3, 2015
    Messages:
    1,177
    Location:
    Snohomish, WA
    Back when I picked it up in June I had to inquire about it, and I had to request it.

    They don't seem to be putting much emphasis on it. Maybe it's because they feel it's no longer the hook it used to be, but I'm pretty sure it's still available.

    I put a lot of emphasis on it because with the Tesla you have absolutely no idea. Not just because of market forces, but the Tesla is so inviting to put massive amounts of miles on it. I'm still absolutely dumbfounded about the amount of miles I put on my 70D within 3 months (6500 miles). So much so that I've been cross checking the odometer accuracy. Thankfully they're fairly generous on the amount of miles.

    I use it to keep my miles in check and as a floor. I also don't have a good feel for the long term reliability or average cost I'll incur beyond its warranty. I can't purchase the extended warranty in my State.

    I would have leased, but at the time WA state had a sales tax exemption if purchased.
     
  8. CHGolferJim

    CHGolferJim Member

    Joined:
    Jan 28, 2014
    Messages:
    841
    Location:
    Chapel Hill, NC
    #8 CHGolferJim, Nov 16, 2015
    Last edited: Nov 16, 2015
    The RVG is still included with Tesla-sourced financing. Same terms: within 36-39 months after purchase, loan must be in good standing, price is 50% of base model plus 43% of options. I received loan offers through Tesla from Chase and TD Bank.
     

Share This Page