Jump to content
Create New...
  • William Maley
    William Maley

    Tesla Announces A New "Revolutionary" Leasing Program


    By William Maley

    Staff Writer - CheersandGears.com

    April 3, 2013

    Yesterday, Tesla announced a new, more affordable way to get behind the wheel of a Model S. Its what Tesla calls a "revolutionary new finance product" that combine the "best aspects of car leasing and ownership." How affordable are we talking about? Tesla was throwing a cost of less than $500 per month*.

    How does this product work? From Tesla's press release,

    • US Bank and Wells Fargo have agreed to provide 10% down financing for purchase of a Model S (on approved credit)
    • The 10% down payment is covered or more than covered by US Federal and state tax credits ranging from $7,500 to $15,000. New Jersey, Washington and DC also have no sales tax for electric vehicles. These advantages are not available when leasing.
    • When considering the savings from using electricity instead of gasoline, depreciation benefits and other factors, the true net out of pocket cost to own a mid-range Model S drops to less than $500 per month.
    • After 36 months, you have the right, but not the obligation to sell your Model S to Tesla for the same residual value percentage as the iconic Mercedes S Class, one of the finest premium sedans in the world, made by Daimler (also a Tesla partner and investor).
    • Not only is Tesla guaranteeing that resale value, but Tesla CEO Elon Musk is personally standing behind that guarantee to give customers absolute peace of mind about the value of the asset they are purchasing.

    Note a key phase in that quote. "When considering the savings from using electricity instead of gasoline, depreciation benefits and other factors, the true net out of pocket cost to own a mid-range Model S drops to less than $500 per month." In other words, they're factoring cost of ownership into the payment.

    Tesla has a calculator on their site that shows Effective Monthly Cost and the actual payment you'll be making. Using myself as an example, here are the Effective Monthly Costs and payments for the three Model S models.

    • 60 kWh: $866 (effective), $1,051 (payment)
    • 85 kWh: $1,042 (effective), $1,199 (payment)
    • 85 kWh Performance: $1,305 (effective), $1,421 (payment)

    *Note: Payments are based a 2.95% APR, 10% down payment, and 66-month term loan, excluding sales tax and registration.

    The big question of course is will anyone get that magical $500 per month payment or not.

    I've only scratched the surface on this. Motor Authority has an in-depth article on Tesla's math that I recommend you check out.

    In the meantime, you can check out Tesla's press release on the next page.

    Source: Tesla

    William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected]or you can follow him on twitter at @realmudmonster.

    Press Release is on Page 2


    Tesla Unveils Revolutionary New Finance Product

    Combines Best Aspects of Car Leasing and Ownership

    PALO ALTO, Calif. – April 2, 2013 – Tesla Motors announced today that, in partnership with Wells Fargo and US Bank, it has created a revolutionary automotive financing product that provides the best elements of ownership and leasing to Model S customers.

    Most people throughout the world prefer to own their belongings, rather than rent what is essentially someone else's property via a lease. However, leases do provide some key benefits, particularly a low initial payment, tax deductions, lower risk on resale value and the convenience of returning a car without the hassle of reselling it personally.

    Working with some of the largest and most respected banks in the country, Tesla has been able to create a new kind of financing product that combines the surety and comfort of ownership with all the advantages of a traditional lease. Like the Model S, this product was created from the ground up to provide maximum benefit to consumers, rather than simply duplicating other financing programs that tend to favor companies at the expense of the individual.

    How does it work?

    • US Bank and Wells Fargo have agreed to provide 10% down financing for purchase of a Model S (on approved credit)
    • The 10% down payment is covered or more than covered by US Federal and state tax credits ranging from $7,500 to $15,000. New Jersey, Washington and DC also have no sales tax for electric vehicles. These advantages are not available when leasing.
    • When considering the savings from using electricity instead of gasoline, depreciation benefits and other factors, the true net out of pocket cost to own a mid-range Model S drops to less than $500 per month.
    • After 36 months, you have the right, but not the obligation to sell your Model S to Tesla for the same residual value percentage as the iconic Mercedes S Class, one of the finest premium sedans in the world, made by Daimler (also a Tesla partner and investor).
    • Not only is Tesla guaranteeing that resale value, but Tesla CEO Elon Musk is personally standing behind that guarantee to give customers absolute peace of mind about the value of the asset they are purchasing.

    User Feedback

    Recommended Comments

    This is a ugly mess that will cause more damage than good and except for the upper 10%, I do not see people doing this unless they are that stupid for wanting to drive one of these auto's.

    Link to comment
    Share on other sites

    This is a ugly mess that will cause more damage than good and except for the upper 10%, I do not see people doing this unless they are that stupid for wanting to drive one of these auto's.

    ?

    Link to comment
    Share on other sites

    if someone wanted to throw away an assload of money, they should buy my house. Oh wait, i already subsidized that loss.

    what is the end of Tesla? At what level of sales and models do they either choke under their own weight, or get bought up (inevitable).

    Link to comment
    Share on other sites

    if someone wanted to throw away an assload of money, they should buy my house. Oh wait, i already subsidized that loss.

    what is the end of Tesla? At what level of sales and models do they either choke under their own weight, or get bought up (inevitable).

    They're doing okay. In March, Model S was the best-selling car in its class, outselling large sedans like the S-Class, 7-series, A8, XJ, and LS; four-door coupes like the CLS, 6er, A7, and Panamera; as well as cheaper midsize sedans like the A6, XF, GS, and M. It's also the best-selling electric vehicle YTD, beating Volt and LEAF. Tesla is delivering 500+ a week now.

    Link to comment
    Share on other sites

    if someone wanted to throw away an assload of money, they should buy my house. Oh wait, i already subsidized that loss.

    what is the end of Tesla? At what level of sales and models do they either choke under their own weight, or get bought up (inevitable).

    They're doing okay. In March, Model S was the best-selling car in its class, outselling large sedans like the S-Class, 7-series, A8, XJ, and LS; four-door coupes like the CLS, 6er, A7, and Panamera; as well as cheaper midsize sedans like the A6, XF, GS, and M. It's also the best-selling electric vehicle YTD, beating Volt and LEAF. Tesla is delivering 500+ a week now.

    Are those actual deliveries or to resellers/dealerships?
    Link to comment
    Share on other sites

    Are those actual deliveries or to resellers/dealerships?

    Actual deliveries to customers. There are no dealerships, and all Model Ss are built to order.

    Link to comment
    Share on other sites

    That's fine and dandy for the wealthy people that can already afford this car. But it's out of reach to the lower and middle class. And wouldn't your monthly payment be higher the more electricity you use?

    Hopefully Tesla is working on a model that competes with a Honda Accord or Chevrolet Malibu as those are the cars that the general population can afford.

    Edited by J Reinhardt
    Link to comment
    Share on other sites

    Counting only fuel, cost per mile for a pure electric car is much lower than cost per mile for a gasoline powered car. What Tesla is trying to say is that the effective cost per month for a Model S is around $500 when you consider your savings in gasoline.

    The big thing I'm noticing about Teslas is they are grabbing non-Greenie people. These aren't Pruis drivers trading in for a Tesla, these are 5-series drivers, S-class drivers and the like. They aren't buying it because it is green, they are buying it because it is a great car, drives great, and their total cost is less than their 550i for similar performance.

    Link to comment
    Share on other sites



    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.


  • google-news-icon.png



  • google-news-icon.png

  • Subscribe to Cheers & Gears

    Cheers and Gears Logo

    Since 2001 we've brought you real content and honest opinions, not AI-generated stuff with no feeling or opinions influenced by the manufacturers.

    Please consider subscribing. Subscriptions can be as little as $1.75 a month, and a paid subscription drops most ads.*
     

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Similar Content

  • Posts

    • https://www.thewrap.com/the-view-ana-navarro-begs-canada-to-become-51st-state/   The hosts of “The View” may think Donald Trump’s endeavor to make Canada the 51st state is an absurd one, but realizing how Canada’s politics actually lean, Ana Navarro is begging them to just “take one for the team.”     “It’s larger than the state of California. So if you imported 40 million Canadians, and made them the 51st state, it would be democratic rule for the next 20 years,” Farah Griffin added. Looking at those numbers, Navarro put out her request to Canadians. “Canada, take one for the team!” she begged. “Please, people, save us!”   ----------------------------------------------------------------------------------------- This is why I refuse to be muzzled on topics of politics.  We want to run away from the political climate. We cant.  Too many Americans view politics as a nuissance. At best. At worst, its taboo. Too many are uneducated. Too many make decisions that affect the whole damned country in a very negative way. Take the article I just linked above.  Is it a phoquing joke to you that we are talking about the phoquing sovereignty of another nation?  It is NOT a phoquing joke.  And when a political leader threatens another country the way Trump has in regards to Greenland and Denmark and Canada, It is is a LITERAL declaration of war!!!  It is a LITERAL act of war!!!  It is NOT a joke.  And in fact, the way Trump has acted in the face of Canada (and Greenland), it desensitizes the American people and it facilitates any aggression towards Canada or Greenland. And by too many Americans regarding politics as a nuissance or taboo, or basically garbage even in an automotive forum, it renders too many voting Americans stupid and uncapable of actually making the right and necessary decisions to protect themsleves from nefarious individuals.  And THAT has made it a phoquing problem for ALL Canadians and Greenlanders...   Let alone for the rest of the good natured Americans who are stuck living this nightmare.    “Canada, take one for the team!” she begged. “Please, people, save us!”   Save you own selves you lazy pieces of shyte!!!  Learn to be political. Stay educated, informed and fix your own phoquing problems...and stop making it a problem for us Canadians.  And Greenlanders.   You think this is a joke? THIS is what Canadians think about the USA now. This was a speech yesterday BEFORE today's talks about it being a good call.  It was right after the Signal app message text war/fight information scandal (for phoques sake...become political and get this President out of office!!!), right after Trump's tariffs on Canadian built cars to draw attentiion to tariffs rather than yet another phoquing illegal scandal...   THIS is what Trump has has made out of Canada's relationship with the US.  THIS is how we Canadians are feeling.   And THIS is why I REFUSE to be muzzled.  Maybe for you American phoques to wake the phoque up.  Too lazy to be political. To stupid to be political.  To mis and dis informed that Fox news, and all other media outlets are phoquing LYING to you.  Are making a mockery out of you and your democracy.   Wake the phoque up and trust me, Ill help you wake the phoque up!!!  Too phqouing bad if you have to read this in an automotive forum.  You have to read it somewhere.  Ill force feed it to you. I did promise I wont be toxic.  But how the phoque do you think I feel as an Canadian when an American journalistic personality is MINIMIZING MY phoquing identity as a CANADIAN to help you phoquing fix your shytty phoquing laziness and stupidity!!! Dont undermine MY sovereignty.    WAKE THE PHOQUE UP AND FIGHT FOR YOUR OWN GOD DAMNED FREEDOMS BECAUSE YOUR OWN PHOQUING STUPIDITIES ARE THREATENING MY GOD DAMNED FREEDOMS!!! 
    • Yep, BYD (and other Chinese brands) will take over Asia, Mexico, South America, etc were they need lower priced cars and they are making some inroads to Europe also.  And at the improvement rate of Chinese cars with all these 1,000+ hp, 400 mile range, charge in 5 minutes they will move into luxury and performance segments.  Which forces legacy auto into the middle and upper market in the US and Europe and I don't know if that is enough volume for them to survive, probably half will die after getting beat up by tariffs when BYD swoops in to pick up the pieces.
    • Yup. If BYD's battery system tech is true with 100% charging in 5 minutes.   Pretty much everybody is toast. And it does not matter if the US and Canada tariff the crap out of BYD and Chinese EVs from their respective markets.  BYD is already in the process of flooding their EVs all OVER the planet.  Including Mexico.   And if Trump pisses off Canada even more with tariffs, forget about Canada banning Tesla from the Canadian market in retaliation, Canada might just  erase the 100% tariffs on Chinese EVs and will let   BYD flood our market too.   If GM  and FoMoCo Ontario plants close, BYD might be welcomed to use them.  China last week or two punished us with 100% tariffs on our porc and other food products that we sell to them.  Retaliatory. (where have  I heard that word before?)  Chinese importers will simply buy porc from other countries hurting our industry... If American tariffs on GM of Canada vehicles and FoMoCo Canada vehicles is still a go, our factories might close, but maybe if we let BYD flood our market, it will hurt GM and FoMoCo THAT much more.  And it doesnt matter actually, Trump's economic war with ALL of its allies will doom GM and FoMoCo anyway.  
    • Ive thought about it.  And there are literally no luxury sedans (the big ones) in this modern era of the 2020s (and to be more precise to use 2025) that I currently lust for.   Nothing from Bentley or Rolls Royce.  Nothing from Mercedes or BMW.  The Audi A8?  I dont like it.  I like the medium version of the A8. The A6.  Precisely, the RS6 Avant.   This.     Americans dont do sedans anymore.  OK...Cadillac has got the CT5.  But it aint a big cruiser sedan.  I do like the Black Wing V Series.   I dont lust after it anymore.  I got over it.
  • Who's Online (See full list)

    • There are no registered users currently online
  • My Clubs

×
×
  • Create New...

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

Write what you are looking for and press enter or click the search icon to begin your search