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Tesla to make "exciting announcement on Thursday" (correction Tuesday)
- Thread starter jvonbokel
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- Tesla Inc.
Mercedes S Class Residual value, right? Here is a slide that might not help our cause - In Pictures: Cars That Lose Their Value Fastest - Mercedes-Benz S-Class - Forbes.com
sp4rk
Banned
Design shop now says 2 months delivery for performance, 3 for 60k battery.
Some test cars are immediate delivery?
Some test cars are immediate delivery?
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
Listening to him talking now... While in some way I can understand his enthusiasm and he has probably engaged himself very personally into this deal and is proud of it, I think qwk is right: a bit of fluff. Also, there is a possible down-side to this: it kind of "cheapens out" the Model S - as with anything you can buy, if there is a cheaper way to own it (or essentially own it) then the exclusiveness of the car goes down. It can make it less desirable for some buyer groups. The Gen III was supposed to be "the people's car", not the S...
Tesla 940
Member
Good
I sold at $45+. Not the peak but close. Waiting for sub-$40.
Maybe this original tweet was really nothing more than an April Fool's joke. By the reaction of most members in this thread that appears to be the concensus.
I sold at $45+. Not the peak but close. Waiting for sub-$40.
Maybe this original tweet was really nothing more than an April Fool's joke. By the reaction of most members in this thread that appears to be the concensus.
But is still is $1k+ a month in reality. It isn't any different than a 3% purchase. Except Tesla does that tax credit for you.
I noticed this as well and it's not very Tesla-like (I would even say it's more Detroit-like) is my opinion.
While I'm a diehard Tesla fanboy their math is just crazy. Time may be money but a base lease payment of $1081 (2.95% APR, 10% down and 66-month term) is far different than the headline number of $477/month. :scared:
K Hall
Member
And it's not a true lease of X grand down, 500 per month, and you turn it in after 36-48 months. I definitively would have gone for that. A bit misleading imo.
EDIT: Although this does seem to have an interesting effect on the CPO (certified pre-owned) market for 3-5 years down the line. If the S-class is a 54% residual value (as stated below), and Tesla refurbs and resells at 65% residual value, a 3 year old model S goes for between 40-70k depending on options.
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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.
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.
In the end it probably is good news for Tesla - more sales - but it feels like it was hyped too much.
I think the original tweet was perfectly fair. Putting his money where his mouth is in a very big way. He's personally guaranteeing the resale value of a Model S after 3 years (does that mean that if Tesla enters bankruptcy he will buy them back himself?). The followup tweet about this being bigger than profitability, however...
Wow, 26% residual value after 36 months? That completely bites.
Update: Elon claims 42% on trailing 12-month S550.
Uh this is not a lease, right? it's a purchase loan with terms that give you the option to resell the car to Tesla after 36 months at the residual value of the car similar to a lease .. or you can just keep paying for it until the loan's paid off. As far as I understand, the title is in your name, it's your car, with the bank as the lienholder just like any other auto-purchase. The other difference I think is that the bank itself is providing the 10% down payment, and they are getting the $7500 government rebate to cover this (you cannot claim it).
please correct me if any of that is wrong above but thats how I am reading this
please correct me if any of that is wrong above but thats how I am reading this
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