Yup, double yawn. I mean yes, it's a good move, I guess, but waaayyy over hyped. Definite wolf crying, who's going to get worked up about his next "exciting" announcement?
Not this guy.
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Yup, double yawn. I mean yes, it's a good move, I guess, but waaayyy over hyped. Definite wolf crying, who's going to get worked up about his next "exciting" announcement?
This will disappoint those hoping the announcement was about making Model S more attainable. In essence, this is nothing more than a low-interest finance program (2.95% APR over 66 months, according to the calculator) with a buy-back program after 36 months. The former is something practically all manufacturers offer, while the latter is something Hyundai did a few years ago with their Assurance program. Lease residual values, on the whole, tend to be conservative (i.e., you're likely to get more from your car selling it on your own--an option some people exercise lease-end when there's still equity in the vehicle) and they vary depending on the month and year. It should be interesting which S-Class residual value Tesla chooses.
For example, for March 2013 the residual on the lame-duck S550 is 54% at 36 months, 15,000 miles a year. When the all-new S-class comes out, it will likely be higher by more than 5%. Tesla's in it to make money, not volume, and they have enough demand where they don't need to offer subsidized lease deals. Those hoping to lease a $60,000 car for $300/month and $0 down payment will have to stick with the E350 BlueTEC for now, as I've done myself. The major automakers can afford to have screaming good deals from time to time; Tesla can't.
Any mention of the mileage allowance?
Wow, 26% residual value after 36 months? That completely bites.
Update: Elon claims 42% on trailing 12-month S550.
Except Tesla does that tax credit for you.
The S550 is the target, indeed, and looks to float with changes to the ALGs S550 residual over time:
Welcome to the Tesla Family! Your vehicle identified above (“Vehicle”) qualifies for our "Resale Value Guarantee". We guarantee that your vehicle will have a resale value after 3 years of at least 43% of the original purchase price (exclusive of taxes, fees and accessories) of your vehicle. This resale value percentage is based on an average of the last twelve months of residual value percentage for a three year old Mercedes S550 as established by Automotive Leasing Guide. The dollar value of your Guaranteed Resale Value is indicated above. During the period between 36 months to 39 months from your Guarantee Effective Date, you have the option to sell your vehicle to Tesla for the Guaranteed Resale Value.
Uh this is not a lease, right?
Actually, reading closely I think not even that. They are just saying your 10% down payment will be "covered" by the tax credit. In other words you will get it back from the government when you file your taxes. Since it isn't a lease I don't believe there is any mechanism for them to get the tax credit on your behalf.
Adjusted for damage, Excessive Wear And Use Based On Tesla’s Standards For Normal Use And For Mileage In Excess Of 12,000 Miles Per year. Excess Mileage Will Reduce Your Guaranteed Resale Value At A Rate Of $0.25 Per mile.
Any mention of the mileage allowance?
Elon just said something very significant - the buyback rate will be the residual rate of a Mercedes S Class or the then current market rate for a used Model S, whichever is higher.
Thanks for sharing. The ALG residual value is lower than the MBFS figures on which actual leases are based. Practically everyone will be better off selling on their own, or even to CarMax, IMO.The S550 is the target, indeed, and looks to float with changes to the ALGs S550 residual over time:
Welcome to the Tesla Family! Your vehicle identified above (“Vehicle”) qualifies for our "Resale Value Guarantee". We guarantee that your vehicle will have a resale value after 3 years of at least 43% of the original purchase price (exclusive of taxes, fees and accessories) of your vehicle. This resale value percentage is based on an average of the last twelve months of residual value percentage for a three year old Mercedes S550 as established by Automotive Leasing Guide. The dollar value of your Guaranteed Resale Value is indicated above. During the period between 36 months to 39 months from your Guarantee Effective Date, you have the option to sell your vehicle to Tesla for the Guaranteed Resale Value.
Elon: people are thinking will we announce some huge expansion of superchargers.
or something else really amazing
we will make those announcements, but not today
Elon says Tesla will make announcements every week from here on out.
The financing co. will finance the initial 10% down in addition to the rest of the car:
US Bank and Wells Fargo will provide 10% down financing assuming a good credit rating, and the down payment is covered or more than covered by US Federal and state tax credits ranging from $7,500 to $15,000.