Forums

Join The Community
RegisterLogin

Big Announcement=Leasing

Looks like leasing is here!

Bostoncde--- yes, I agree with you, this was a bogus announcement. I hope supercharger infrastructure will next on Elon's announcement list!

Other factors: $0.25 per mile penalty over 12,000 miles erodes the electricity VS gasoline savings. If you drive 20,000 miles/year (as I do), that's $6,000.

I am on the fence for financial reasons, but this didn't make me jump.

Love the concept. Hate the fuzzy math. My car is amazing!

For myself this is really good news. I thought I would have to wait 3 or 4 years to be able to afford a Tesla ( Gen 111 ) I can now purchase model S in a few months when this offer comes to Canada.

I strongly recommend purchasing Tesla shares.

I bought Tesla shares 1 month ago & at this rate ( I paid an average of$ 35.90 per share ) I should be able to make monthly payments from the profit of the shares. Tesla is paying for my Tesla.

Thanks Elon For building a great EV & introducing this new financing program.

When someone has to tell you that something is exciting...

Really

Quote from electrolight:

I bought Tesla shares 1 month ago & at this rate ( I paid an average of$ 35.90 per share ) I should be able to make monthly payments from the profit of the shares. Tesla is paying for my Tesla.

So for the next 66 months you are actually depending on the increase of Tesla stock to found your payments? Sounds like a crazy bet. Why not just take a trip to the nearest Casino and keep doubling your bets on the blackjack table until you hit it big - it is about as likely to happen as you making your payments with your new an revised master plan for financing.

What's all the hoopla about?

You can already get 1.49% rate at least at the following 2:

https://www.logixbanking.com/rates#tab=1

http://www.alliantcreditunion.org/loans/vehicle/

1.75% at:

https://www.penfed.org/Auto-Loans-Overview/

It's just a buy back guarantee when you use their financing partners but it's a great business strategy.

It's a great business stratege because not only it will entice more potential buyers to buy the car but will also get Tesla into the "pre-owned" car business. All major auto companies are into this business so the will make profits more than once for every car they manufacture. Tesla can make even more profit than those conventional auto companies because they don't have to go through the middleman/dealer.

Go out and buy more Tesla shares. These people are very smart.

Tiebreaker;
that's weird math. 20,000 - 12,000 = 8,000. 25¢x8,000 = $2,000, not $6,000.

@electrolight

how many shares did you get for TSLA to cover the approx $1k monthly cost of leasing ?

torst1 is right though, it still is gambling and unlikely !

The buyback guarantee is great and will alleviate many buyers' concern about EV resale value, but did they really need the hucksterish sales pitch of claiming $500/mo payments? I mean, part of the argument for EVs has always been the fuel savings. You can't on the one hand calculate an "effective" monthly payment that factors in gas savings, and at the same time talk about how much money you are saving at the pump. You can only use that number once. And calculating in the "savings" i dollars from pump time to get to that number? Come on Tesla, why open yourselves up to ridicule for such a cheesy pitch.

@Brian H, x3 years

I'm a little comfused. Elon said after three years you can turn it in and receive cash back or equivalent trade in value... Does this means you will get the 43%+ in cash if you decide to turn it in? Sounds like a lease with the benefits of monthly payments contributing to equity over three year period. So essentially if you pay $1000/month for three years, you've put in 36k. If minimum resale value is 43% of 80k -- 34.4k -- you essentially paying 1.6k to drive the car for 3 years.

Clarification welcome. Thanks

Math is a little off. If the car is worth $80,000 day one and $34,400 in 3 years, it lost $45,600 over the 3 years (not including interest), so if you somehow only paid $1,000 per month (doubtful) you would owe $45,600 - $34,400 = $11,200 to get out of the lease (and this does not include interest).

More likely you would be paying around $1,450 per month and be closer to break even at 3 years.

That's funny, because he never said turn it in and pay the difference of the loan, he said turn it in and get 43% cash back. He also said turn it in and get trade in value. He didn't say turn it in get trade in value after the rest of the loan is paid off.

Otherwise, where is the added affordability? I don't see any change in market for the Model S if the above isn't the case. Paying over 1k is not affordable to a wider market no matter how much you save on gas (up to 12k miles).

I don't really like the creative calculations to arrive at $ 500 / month either. Many people will be lured to the site via the low per month cost and then be disappointed that it actually costs more than twice as much.

The cost of a car is more than the monthly payments and it is a real challenge for Tesla to get that message across to the public. This is just one approach to achieve that and if it slightly p**es off/disappoints potential customers, Tesla still got their attention. It won't score any points for elegance, but the most important thing is to deliver the message.

Here's a calculator to try

@jk2014. It is a loan with the buy back provision. So you don't get to pocket the residual. If it is an $80k buy with the guaranty it is worth $34k (43%) down the road, then assuming you pay $1,100/month, you'll owe $35k (assuming $10k down) on the car - so Tesla will pay $34k and you pay $1,000 and you get out of the loan obligation in month 36 if you want. You don't get to drive the car for free by getting all the money back in month 36. So it really just provides a lease-like program to help with affordability and gives people who use the program comfort they won't owe $35,000 Ina worthless car in 3 years.

I'd rather take the 1.49% from Alliant. Either way, I can't wait to take delivery of my beautiful 60kWh MS soon!

The financing plan is brilliant as constructed. But Tesla is making a credibility blunder by marketing it ingenuously. Only a rare subset of business owners will realize a cost of ownership approaching $500 a month. The average buyer will pay much more.

IMHO the marketing approach should be modified ASAP to be more straightforwardly honest before Tesla's credibility and reputation for integrity is lost.

@ddruz@aol.com

this is not about integrity; it is simply smart marketing, especially that you can uncheck savings that you do not realize in the calculator

anyone who is upset you cannot pay only $500 per month for 5.5 years (with interest) and own a $70k car afterwards is no different than those people who were very disappointed with Apple not selling the iPhone 3G at $200 (unlocked, free of contract) as in the US (that was a $600 phone, carrier subsidized at $200)

Beware of he who is blinded by a huge and ever inflating ego. They act as if they can do no wrong, and everyone else is pining to absorb any and all of this smoke & mirror rubbish. Or is it a whiff of desperation?
I'm not however, selling my TSLA shares just yet.

It actually is a good way to "buy" the Tesla Model S via a loan which you pay back in monthly payments. I personally would not sell the car back to Tesla Motors after three years, instead I would keep making the monthly payments till the loan is finished.

As many people just do not have such an huge amount to buy a Tesla Model S and pay the full price all at once. I think this is a great move by Elon Musk. By this move Elon Musk has reached out to those people who can now afford it to drive a Tesla Model S. So, this move is good for both Tesla Motors and the public as well. Well done.

@ Kilimats

I have 1115 shares of TSLA @ $35.90 I could be wrong but I predict they will be
worth from $ 44.00 to $ 46.00 by next quarterly announcement in mid May

I have been trading stocks for many years. Tesla has all the makings of a true winner.
They are a game changer, have a unique product ( who else makes an EV with laptop batteries
that travels up to 300 miles per charge. Thousnds of cars pre sold...I could go on

Plus Mr Musk has 2 other very successful companies....

Bottom line: no one outside the current target market will ever pay 1k+/month for a car. Period.

The calculator was there on the last version of the website. This one just adds the meaningless metrics of personal time cost.

It really isn't about affordability. It's about assurance that the car will have value after three years.

The rest is smoke and mirrors. Very bad smoke and mirrors. Not a good PR or marketing move.

This announcement degrades Elon's credibility if he considers it more "affordable."

It is not even close to being a model like solarcity either.

He will need to redeem himself with a great announcement in the coming weeks. The market and customers want fantastic news on the superchargers. Please pay attention Elon!!!

I'm glad there is some sort of 3-year resale value being established, and applaud Elon's move to do so, however, the $500/month "bait and switch" is just going to give the EV naysayers grist for the mill. John Petersen is going to have a field day with this. Even my son emailed me and said "Did you hear you can lease a Model S for $500 a month?"

Like the 300 mile range thing, this should have been handled with a bit more transparency, IMO.

@electrolight

Trading for years and still making silly bets - why?

If you can't afford the car don't buy it assuming stocks will pay for it.
If you do you are no better then the besserwissers in casinos that think they have a water tight plan when they keep doubling their bets on the blackjack table - hoping to strike it big. And within few minutes realizes their cash pool is drained long before the do win big. And believe you me - it does not take that long before they walks of in shame. Not a penny to their name.

While the product is great other companies might easily make a carbon copy of Tesla's batteries. Before you know it there might be 5 existing car companies that uses the same approach. Or maybe the reality of European market sends all stocks down for the next 1-3 years. Meanwhile you must sell your shares every month for less then your buy in just to keep you payments......your stocks might just run out before your final payment.....

reminds me of the old car salesman training maxim: "sell the payment not the car"

I agree with you , jk2014.
In spite of having some merit, this financing product is missing an opportunity for lowering the entry point and drastically increasing the rate of reservations. On other hand one should keep in mind that Tesla had to keep banks on board. I feel that they did not want to go along with a pure leasing product with agressive residual value (50-55%) and significantly lower payment.

The salesmanship, however, was really in bad taste as far as I am concerned.

The silver lining might be in the market over reaction promoted by the bears. Given solid Q1 results and, hopefully, more substance and less spin in the future announcements, there will be a nice up tick in stock price going into the release of official Q1 results.

Oh this is great, been waiting to hear about this 'lease-ish' program. I normally just like to have a new car every 3 years, so when my Bentley lease is up i'll make the switch to Model S. Was really impressed with the handling/power/solid feel to the car. The Fisker Karma drove like a wooden roller coaster...

I respect the heck out of Elon Musk for pushing the development of these cars and the infrastructure to support them!


X Deutschland Site Besuchen