Sounds about right, and explaining it that would probably would have gone over better than the games they're playing.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Tesla to make "exciting announcement on Thursday" (correction Tuesday)
- Thread starter jvonbokel
- Start date
-
- Tags
- Tesla Inc.
Sounds about right, and explaining it that would probably would have gone over better than the games they're playing.
They can't even give you residual value of the car because there's not a secondary market to reference, they are using an indice. It's common practice.
sp4rk
Banned
I dunno. The only major depreciation will be the batteries. $30k. Say worth $10k or less than. But I still have a perfectly viable shell, motor; etc. And I expect I can still drive it for another ten years.Less than $43K.In 10 years our cars will be worth very little due to normal depreciation but mostly because the batteries and tech will be so much better by then.
When he compares to Merc S Class ... which model? S500? S550?
I don't think it's a game. They negotiated something that's never been done before. Using a tax credit as a downpayment in convincing a bank is an enormous task. Tesla needed sample data from its current consumers and Elon's backing as collateral to even convince their bank partners to do so.
This gets rid of the whole should I lease or buy a car conundrum that people face by offering a price floor and equity building. More importantly, if it gets your person who leases over the hump to get into the car it might convert them to buy. 0 down. Fixed payments. done. It isn't leasing if you are building equity.
- - - Updated - - -
He referenced the S550. The S500 aren't made anymore.
EarlyAdopter
Active Member
By the way, let's give a round of applause for the 27 people who correctly guessed the nature of today's announcement. We'll all be counting on you to correctly guess the next announcements that evidently are going to be coming "every week or two."
"Tesla/Elon to set up financing/leasing program. 27 10.55%"
"Tesla/Elon to set up financing/leasing program. 27 10.55%"
From what I understand, it's not truly $0 down. Rather, you front the 10% down, and get that back (and change) from the federal tax credit and state rebates. And I'm not sure why I'd want to build equity in such a heavily depreciating asset.
Given that the current shift is at max capacity and essentially sold out for 2013, a reasonable bump in demand from this program may trigger production expansion into second shift. Would be a very near term and sizable impact to the bottom line. Will be very interesting to see if there are any comments during the May call on the adoption rate of the program
Help me out here ... I buy 60kWh at GRV program at ~$1000/month. After 3 years I've payed $36k in total for a car and Tesla buys it back paying me 62k*0,43 = ~$25k.
Those 3 years of owning and driving a new Model S had cost me $36 - $25k = $11k in total? Effectively only ~$300/month?
This cannot be?!??
Those 3 years of owning and driving a new Model S had cost me $36 - $25k = $11k in total? Effectively only ~$300/month?
This cannot be?!??
Bah, nothing special for us in Australia,
Bring on production of RHD vehicles pleeease.
The finance situ in the USA is fkn awesome though, wish we had something similar,
but with automobile pricing being more than double that in the USA, I doubt it'll be affordable to the masses.
Bring on production of RHD vehicles pleeease.
The finance situ in the USA is fkn awesome though, wish we had something similar,
but with automobile pricing being more than double that in the USA, I doubt it'll be affordable to the masses.
Today's announcement will create more sales. How can people complain about that?
This "Lease-to-Own" program is good for everybody except the people that plan to pay for the car outright.
The reason he compares it to a Mercedes is to get those buyers to take a look at the Model S.
This "Lease-to-Own" program is good for everybody except the people that plan to pay for the car outright.
The reason he compares it to a Mercedes is to get those buyers to take a look at the Model S.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
No, it cannot. You can not sell what you do not own. Tesla buys it back from the bank, paying them $25k.
Your cost for the three years have been just that $36k or $1k per month.
Elon always said the lease will be comparable to BMW 5 Series. I dont see how.
$669 for 36 months, $3,500 Down payment based on MSRP of $70,395.00.
This becomes $776 / mo
My configured Tesla is 1167 / mo
Ok now lets add the gas saving 10,000 miles at 3.75 gas price, BMW does 23mpg highway and Price of electricity (kWh) is 0.13, according the site it says i will save 100. Lets say the lease includes the maintenance $600 per year, then I save $50 more. saving of 150 per month
Tesla comes to $1000, and BMW $776.
Now don't say go get a BMW. I want a tesla.
$669 for 36 months, $3,500 Down payment based on MSRP of $70,395.00.
This becomes $776 / mo
My configured Tesla is 1167 / mo
Ok now lets add the gas saving 10,000 miles at 3.75 gas price, BMW does 23mpg highway and Price of electricity (kWh) is 0.13, according the site it says i will save 100. Lets say the lease includes the maintenance $600 per year, then I save $50 more. saving of 150 per month
Tesla comes to $1000, and BMW $776.
Now don't say go get a BMW. I want a tesla.
People love the S. Whenever I take it out, I get positive comments and "thumbs-up" instead of the nasty looks when I drove other high-priced cars. However, many have said: "wish I could afford one". Frequently these people are in nice cars in the $60,000-80,000 range. They spend thousands a year on gas, oil and other servicing needs. They sit in freeway traffic wasting time.
Now Tesla comes along with a leasing plan that shows what the true cost is of a Model S, taking typically ignored expenses into account. The tax credits cover the down payment, the lease payments are similar to other high-end cars, but they are offset by reduced fuel and maintenance costs. This is good stuff.
When I took delivery of my Tesla, my biggest fear was Tesla going under because not enough people would buy them. Anything that improves sales of a remarkable car is good for me as both and owner and stockholder.
VIN 1920 P85
Now Tesla comes along with a leasing plan that shows what the true cost is of a Model S, taking typically ignored expenses into account. The tax credits cover the down payment, the lease payments are similar to other high-end cars, but they are offset by reduced fuel and maintenance costs. This is good stuff.
When I took delivery of my Tesla, my biggest fear was Tesla going under because not enough people would buy them. Anything that improves sales of a remarkable car is good for me as both and owner and stockholder.
VIN 1920 P85
I think the website is fine; the TCO calculator is very clear, letting you alter the assumptions. Where I think there's an issue is:
- The headlines will all read "$500/month to lease a Model S", and that ain't so (and Elon and Tesla did qualify the $500 as a net cost after considering other savings);
- The optimistic assumptions needed to generate the $500/month. When I plug in my numbers, I get $810/month. For example, if whatever vehicle I get is going to be used for business, then there's no net savings from this program.
ModelS8794
Member
The reverse actually. The financing bank fronts you the 10% down, and you pay it back (at tax time, I presume) once your tax rebates clear.
Are you sure? What happens to the original loan balance? Walking away from the car after 36mos with no payoff sounds too easy.
Announcement is less exciting for those of us that have already purchased the car.
Personally I'm a little shocked at the reality that my $100K car may only be worth $43K in less than three years. It may very well be accurate but I had chosen not to perform those precise calculations yet.
I think the MB Model S depreciates much faster than other MB models and definitely faster than a Tesla. They chose this backstop for that reason, in my opinion.
What's your source for this information? I haven't seen anything that specifies how the down payment is handled.
Similar threads
