Can we have more specifics on what this exactly means? Are they saying they guarantee 50% or more? What cars are the considering to be in the same class? Technically no other manufacturer has a competing car.
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5/3/13 Announcement press release up
- Thread starter Cosmacelf
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- Tesla Inc.
I would think something along the lines of an A7, A6, Lexus LS, Mercedes S, large luxury sedans.
sp4rk
Banned
Now I am more confused. He says it has jumped from 43% to 50% in one sentence; then says our cars will be worth 20% more since the last announcement?
Would it not be 7%?
So you take one model from each manufacturer?
That's retailed for the same price as our Model S cost; average that out and in 3 years you'll get 50% of that average number?
Would it not be 7%?
So you take one model from each manufacturer?
That's retailed for the same price as our Model S cost; average that out and in 3 years you'll get 50% of that average number?
NuclearPowered
Member
2013/05/03 Tesla Motors Media Announcement
press release
Q&A Notes
1. What is the new length of financing?
Goes from 63 months to 72 months.
2. Can you speak to how you're changing the depreciation benefits?
The resale guarantee to applies to all customers regardless of personal vs. business. [He made a mistake here not saying it was for lease only, i.e. not outright purchases future or previous.]
By raising the resale value, we reduce the depreciation benefit.
2b. How does it work when pegging it to multiple makes/models?
We're raising it from 43% to 50%. It's the average of all cars made by that brand in our price segment.
2c. Does the 50% represent a 'now' number or will it be adjusted?
It will be adjusted in the future as an average of all models... [see 2b answer].
There are occasional cars that are limited edition. Excluding those, that have scarcity value. At 50% we're quite a bit ahead of what someone would expect to get Audi, BMW, or certainly a Jaguar.
2d. Concerned about tying to a particular model?
We got feedback that the model wasn't near the top in resale so we're raising the ante from 43% to 50%. Pretty big jump .. ~20% more cash for your resale.
3. Can you give me a sense of how many customers chose this from the initial program?
How much leasing do you project will be part of your business? Any update on sales or production?
Around 20-25% are going thru Tesla financing partnership with Wells Fargo and U.S. Bank. Long-term, as we keep making it better, I anticipate we'll see 50-70% going through the financing program. I think the "right way" is through a financing program as it highlights the savings ... gasoline.
3b. Did you get feedback from customers?
We got quick a bit of flack from a number of journalists that felt that we picked not a great reference point. And that we included too many non-financial elements when describing the rate. We decided we were wrong and need to fix it.
3c. Lease adjustment on say a $70K Model S?
[I missed most of this one. Sorry.]
We raised the $12K limit to $15K limit.
4. Even with upgraded guarantee, with say $11K miles, you'll still pay market value?
Yeah. What we're saying is the floor is the best value guarantee. If the car is worth more, we'll pay more.
We give customers a put right to Tesla at the highest retail value of any sedan. Essentially a 3 month put with the car.
4b. Interest rate unchanged?
Yes, under 3% ... unchanged.
5. Influx of new purchasers. Do you expect a bump [in sales]?
Difficult to predict. Even though first announcement was flawed there was a meaningful increase in demand. As a cash purchase, our car is kind of expensive. As a finance purchase, I think it becomes increasingly affordable. Top 1% of households as purchase, but with right financing it becomes top 10% potentially. And with our 3rd generation car we'll make it truly mass market. With we could do that with Model S, but we need more time.
6. Are you seeing a new class of buyers who were not able previously? Are there more 60 [kWh] purchases now instead of 85 [kWh] with that?
We are seeing increased demand. We are seeing more of a shift mix to the 60 kWh pack, but still majority 85 kWh. I recommend the 85 if people can afford it at all, because they're going to be happier.
[Currently] Accessible to people more late in their career. It's still not a car for people early in their careers. With financing, now accessible to people in more industries that are later in their careers.
6b. Change in average age of the buyer?
Don't know the age of our buyers. We try not to ask. (Chuckle.)
I think it's younger than the average for a premium sedan. I'm fairly confident anecdotally. Total guess... I would guess average age around 40-45.
press release
Q&A Notes
1. What is the new length of financing?
Goes from 63 months to 72 months.
2. Can you speak to how you're changing the depreciation benefits?
The resale guarantee to applies to all customers regardless of personal vs. business. [He made a mistake here not saying it was for lease only, i.e. not outright purchases future or previous.]
By raising the resale value, we reduce the depreciation benefit.
2b. How does it work when pegging it to multiple makes/models?
We're raising it from 43% to 50%. It's the average of all cars made by that brand in our price segment.
2c. Does the 50% represent a 'now' number or will it be adjusted?
It will be adjusted in the future as an average of all models... [see 2b answer].
There are occasional cars that are limited edition. Excluding those, that have scarcity value. At 50% we're quite a bit ahead of what someone would expect to get Audi, BMW, or certainly a Jaguar.
2d. Concerned about tying to a particular model?
We got feedback that the model wasn't near the top in resale so we're raising the ante from 43% to 50%. Pretty big jump .. ~20% more cash for your resale.
3. Can you give me a sense of how many customers chose this from the initial program?
How much leasing do you project will be part of your business? Any update on sales or production?
Around 20-25% are going thru Tesla financing partnership with Wells Fargo and U.S. Bank. Long-term, as we keep making it better, I anticipate we'll see 50-70% going through the financing program. I think the "right way" is through a financing program as it highlights the savings ... gasoline.
3b. Did you get feedback from customers?
We got quick a bit of flack from a number of journalists that felt that we picked not a great reference point. And that we included too many non-financial elements when describing the rate. We decided we were wrong and need to fix it.
3c. Lease adjustment on say a $70K Model S?
[I missed most of this one. Sorry.]
We raised the $12K limit to $15K limit.
4. Even with upgraded guarantee, with say $11K miles, you'll still pay market value?
Yeah. What we're saying is the floor is the best value guarantee. If the car is worth more, we'll pay more.
We give customers a put right to Tesla at the highest retail value of any sedan. Essentially a 3 month put with the car.
4b. Interest rate unchanged?
Yes, under 3% ... unchanged.
5. Influx of new purchasers. Do you expect a bump [in sales]?
Difficult to predict. Even though first announcement was flawed there was a meaningful increase in demand. As a cash purchase, our car is kind of expensive. As a finance purchase, I think it becomes increasingly affordable. Top 1% of households as purchase, but with right financing it becomes top 10% potentially. And with our 3rd generation car we'll make it truly mass market. With we could do that with Model S, but we need more time.
6. Are you seeing a new class of buyers who were not able previously? Are there more 60 [kWh] purchases now instead of 85 [kWh] with that?
We are seeing increased demand. We are seeing more of a shift mix to the 60 kWh pack, but still majority 85 kWh. I recommend the 85 if people can afford it at all, because they're going to be happier.
[Currently] Accessible to people more late in their career. It's still not a car for people early in their careers. With financing, now accessible to people in more industries that are later in their careers.
6b. Change in average age of the buyer?
Don't know the age of our buyers. We try not to ask. (Chuckle.)
I think it's younger than the average for a premium sedan. I'm fairly confident anecdotally. Total guess... I would guess average age around 40-45.
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manitou820
Member
I'm still waiting for their website refresh to see that actual pricing but this may have finally pushed me over the edge. I've been going back and forth on ordering, but this will put it inline with my current car payment.
ShortSlaver
Member
Could be that you need to refresh all the lage assets. They likely updated the CSS but your browser is using the old version as it is cached.
Bardlebee
Member
So this is in the fine print:
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This calculator is intended to give you an idea of how much you can save by driving Model S compared to a gasoline sedan.
Finance payments have been estimated based on a 2.95% APR, 15% down payment, and 72-month term loan. Sales tax, registration fees, and loan fees have been excluded because they vary from state to state. Changes in down payment and term may change the rate of the loan. Financing is currently only available in the following states: CA, CO, IL, FL, NJ, NY, OR and WA. As with all loans, approval is subject to your credit and program guidelines.
Business tax benefit examples assume a 40% effective tax rate and 70% business use of your car and include depreciation, interest expenses, and operating expenses. Learn more about Guaranteed Resale Value.
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Does that mean since I am in TX, I am screwed?
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
This calculator is intended to give you an idea of how much you can save by driving Model S compared to a gasoline sedan.
Finance payments have been estimated based on a 2.95% APR, 15% down payment, and 72-month term loan. Sales tax, registration fees, and loan fees have been excluded because they vary from state to state. Changes in down payment and term may change the rate of the loan. Financing is currently only available in the following states: CA, CO, IL, FL, NJ, NY, OR and WA. As with all loans, approval is subject to your credit and program guidelines.
Business tax benefit examples assume a 40% effective tax rate and 70% business use of your car and include depreciation, interest expenses, and operating expenses. Learn more about Guaranteed Resale Value.
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
Does that mean since I am in TX, I am screwed?
Just do it. You can't put a price on happiness... but this certainly made it cheaper lol
Bardlebee
Member
I really feel this will bring demand. I can over pay all I want, but there is a number in my head that I would be willing to pay monthly and I don't think I am alone. I think there is an untapped market of people "Just on the edge" of owning a Model S. That is where I sit.... but like my question above... if I can't get financing for this in TX.... what options do I have?
I'm not disappointed because I'm not surprised by it. (Not a critique, it's just not what they were aiming for.)
I'm also not disappointed because I don't plan to sell my vehicle anytime soon.
That said, it would be nice if they gave buyers (rather than just financers) the same buyback options. But there's a lot of nice-to-haves that are never had.
I'm not disappointed that I took the 1.49% vs. the nearly 3% Tesla is offering. I'll gladly take the close to $3k in interest savings. Plus, all the through Tesla financiers will help establish the market value of used Model S'es. And when the Model X is out, Tesla will surely offer a way to buy your Model S to get you into a new X, just like they did with Roadsters.
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BTW, http://teslamotors.com is still down for me. Anyone else?
Benz
Active Member
So, if an American citizen wants to buy a Tesla Model S P85 (with certain options) which will cost 110,000 USD through the financing program, then he/she will have the option to sell the car back to Tesla Motors and receive back 55,000 USD (=50%), which he/she can use to pay off the loan from US Bank or Wells Fargo (in case he/she doesn't want to get another Tesla Motors EV)?
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