Tesla to make "exciting announcement on Thursday" (correction Tuesday)

[ohaq]

In the calculator the gas is based on 15000 miles/year but dont do that. The terms and condition say that you pay 0.25 per mile if you go above 12000 miles. It should have just been set to 12000 miles

I dont like the calculator. Why waste my time and then I get an email that this is only available in selected states.

 

[yobigd20]

Hold up, wasn't this a 66 month agreement yesterday? "Based on a 2.95% APR, 10% down payment, and 63-month term loan, excluding sales tax and registration."

yeah. it was 66. now it's 63. Who does a "63" month term? at least 66 is 5.5 years. eh thats still weird to me, but i've seen some banks do it. but 63? They just wanted an odd number to be different again? "hey we're the first to offer a 63 month term! be the first to have an odd number of months on a car loan in auto history!!" lol.

 

[Norbert]

yeah. it was 66. now it's 63. Who does a "63" month term? at least 66 is 5.5 years. eh thats still weird to me, but i've seen some banks do it. but 63? They just wanted an odd number to be different again? "hey we're the first to offer a 63 month term! be the first to have an odd number of months on a car loan in auto history!!" lol.

If you keep complaining they'll change it to 61 months. Then you can't divide it by 3 either.

 

[aznt1217]

That's exactly why Tesla/Musk & Co. Are doing this plan. To put a residual price floor, so that when the market speaks for the used Model S/Future EV market, they'll take whichever is higher.

A used 2010 S550 with 40,000 miles goes for 58,000 where I am. I think it's a halfway decent base. Don't listen to Bloomberg who used the S600 as a reference for depreciate value. Nobody in their right mind would do that, that and the s600 sticker is so high it works out anyway lol.

What I'm seeing is a forced devaluation. They are basing EV resales on the limitations of ICEs.

Who are "they"? Appraisers and the public. When Roadsters first started coming on the market they just sat. And sat. Used Tesla buyers were just not going for the concept of a higher price for a car that has much less drivetrain wear for similar miles. It may take a decade for that to change. If it ever does.

 

[ElSupreme]

yeah. it was 66. now it's 63. Who does a "63" month term? at least 66 is 5.5 years. eh thats still weird to me, but i've seen some banks do it. but 63? They just wanted an odd number to be different again? "hey we're the first to offer a 63 month term! be the first to have an odd number of months on a car loan in auto history!!" lol.

My mom got a 27 month lease from BMW. If you ask you can get all sorts of crazyness. My dad got a 59 month loan period, because the bank increased their rates at 60 months, asked for a 59 month one and they said sure (regional bank back in the 90s).

 

[Sans Gas]

Looks like most interest is in expansion of the super charging network. Maybe that will be the next HUGH announcement.

 

[ItsNotAboutTheMoney]

What I'm seeing is a forced devaluation. They are basing EV resales on the limitations of ICEs.

Who are "they"? Appraisers and the public. When Roadsters first started coming on the market they just sat. And sat. Used Tesla buyers were just not going for the concept of a higher price for a car that has much less drivetrain wear for similar miles. It may take a decade for that to change. If it ever does.

The used car market is much more value-oriented than the new car market, so low-volume, high-maintenance and profit-making optioned-up cars get a serious beat-down while fuel efficient, low-maintenance cars get rewarded.

BEVs have cheap fuel and are very low maintenance, but unfortunately they have large traction batteries that have limited and unpredictable life and are expensive to replace (sometimes at unknown cost).

BEVs have the additional problem is that people expect that something cheaper and better will be around the corner.

Time will provide more data and decrease the uncertainty, probably raising the resale price.

 

[Curt Renz]

Looks like most interest is in expansion of the super charging network. Maybe that will be the next HUGH announcement.

The announcement next week will be service related. The Supercharger announcement will come a week or two later. Then a mystery announcement regarding something under a Model S driver's nose: Elon Musk: Hitchhiking The Galaxy As Tesla Comes Of Age - Forbes

 

[ModelS8794]

yeah. it was 66. now it's 63. Who does a "63" month term? at least 66 is 5.5 years. eh thats still weird to me, but i've seen some banks do it. but 63? They just wanted an odd number to be different again? "hey we're the first to offer a 63 month term! be the first to have an odd number of months on a car loan in auto history!!" lol.

The point of this program is to have a purchase and loan that matches the characteristics of a lease, so that the large pool of Luxury car buyers who prefer leasing can see the MS as a viable option.

In order for a loan to look like a lease, it needs to have an opportunity to return the car to the dealer at the end of the lease term (36 months in this case) and have the customer simply walk away free and clear. To make the situation work the same way with a purchase and put-back option, you need 1) a fixed guaranteed price that Tesla will pay at month 36, 2) and that price needs to be equal to the remaining principal on the original loan, so that the customer returns the car, Tesla pays them the guaranteed price, the customer turns around and hands that cash to the lender, and everything is paid off free and clear.

I suspect the terms of the loan are designed so that the monthly payments are made for 36 months and the remaining balance at the end of that period is equal to the guaranteed payment a customer will receine when he returns the car. Perhaps the math works out just so only if the loan is amortized over 63 months.

 

[ohaq]

How come the leasing for Leaf/volt is so less.
For leaf $25000 lease is $250 and for a volt $32000 lease is 330. So if you double the amount $64000 which is base price of tesla, then the lease for tesla should be $660, instead of $1100.

Just taking it all out, no one at home understands why I want a tesla.

 

[gjunky]

How come the leasing for Leaf/volt is so less.
For leaf $25000 lease is $250 and for a volt $32000 lease is 330. So if you double the amount $64000 which is base price of tesla, then the lease for tesla should be $660, instead of $1100.

I think it is because this is not a lease. It is a 63 month purchase with a guaranteed buyback. So you are paying for the entire car. If the residual value after 36 months is more than you owe, they will pay you the difference if you decide to return the car. At least that is how I understood it.

 

[VolkerP]

yeah. it was 66. now it's 63. Who does a "63" month term? at least 66 is 5.5 years. eh thats still weird to me, but i've seen some banks do it. but 63? They just wanted an odd number to be different again? "hey we're the first to offer a 63 month term! be the first to have an odd number of months on a car loan in auto history!!" lol.

36/63 = 0,571428571428 so pretty close to 57% of your loan are payed back. Nicely matches the 43% residual value warranty by Tesla/EM. And the 36 month time window nicely matches typical lease terms.

 

[yobigd20]

36/63 = 0,571428571428 so pretty close to 57% of your loan are payed back. Nicely matches the 43% residual value warranty by Tesla/EM. And the 36 month time window nicely matches typical lease terms.

Ok, now this makes a lot of sense. At the end of 36 months, you've paid 57% of your loan. If the car is worth more but Tesla buys back at 43%, they are going to make a nice profit on the resale. Now I get it.

 

[Norbert]

Ok, now this makes a lot of sense. At the end of 36 months, you've paid 57% of your loan. If the car is worth more but Tesla buys back at 43%, they are going to make a nice profit on the resale. Now I get it.

Or you make a profit: Either they'll pay more (Elon indicated they might, if the market value will be higher), or you can pay off the loan and sell it in any way you like (perhaps including to Tesla, outside of this program, as a used car).

Elon does expressly expect the market resale value of the Model S to be higher than the guaranteed value. The guaranteed value is meant more as a "floor", a minimum, suggesting *you* might be able to make a profit at that time.

(Perhaps they adjusted the loan to match the MB S-class resale value after 3 years, being confident a Model S would do at least equally well.)

 

[ohaq]

I think it is because this is not a lease. It is a 63 month purchase with a guaranteed buyback. So you are paying for the entire car. If the residual value after 36 months is more than you owe, they will pay you the difference if you decide to return the car. At least that is how I understood it.

I wish it was a 8 year (96 month) purchase as batteries have 8 year warranty, this way the monthly cost would be around 700. Ah well...

 

[ModelS8794]

I wish it was a 8 year (96 month) purchase as batteries have 8 year warranty, this way the monthly cost would be around 700. Ah well...

With a 96 month term you would not be able to turn in the car at end of year three free and clear, as your principal balance remaining on the loan would be greater than the guaranteed minimum value Tesla agrees to pay you for the car.

Plenty of other banks and thrifts out there to accommodate longer term loans though, just doesn't work for a product designed to mimic the behavior of a lease.

 

[xtothem]

Is it too early to start speculating a little on Musk's next few week announcements?

Regarding the Supercharger announcement this is what Elon said: "It is a very exciting and dramatic -- really dramatic --- increase in the number of Superchargers and in what the Superchargers can do. I think people will be really psyched." (http://www.engadget.com/2013/04/05/elon-musk-interview/)

 

[neroden]

Is it too early to start speculating a little on Musk's next few week announcements?

Regarding the Supercharger announcement this is what Elon said: "It is a very exciting and dramatic -- really dramatic --- increase in the number of Superchargers and in what the Superchargers can do. I think people will be really psyched." (http://www.engadget.com/2013/04/05/elon-musk-interview/)

OK, while I have insomnia I'll speculate: the Superchargers will now be able to charge eight cars at once, each, and will have 300 foot long cords, eliminating fears of the spot being taken. And looking like an octopus. :wink:

Seriously, I'm not expecting much from the Supercharger announcement, it'll probably be the locations they already said the Superchargers would be in, and a minor increase in wattage.

 

[jvonbokel]

For individuals, no such benefit. Infact there are questions about tax benefits of financing the car vs leasing it. With lease the whole lease is a business expense, with financing, it isn't clear to me you can deduct the whole monthly payment.

I disagree. In fact, IMHO, this is the whole reason this psuedo-lease has been set up. If they did a real lease, you wouldn't be buying the car, and thus would be ineligible for the federal/state rebates. With this structure, you are legally buying the car, so you can get the rebate, but with this program, you are effectively leasing the car (assuming you exercise the buyback option).