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Tesla to make "exciting announcement on Thursday" (correction Tuesday)
- Thread starter jvonbokel
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- Tesla Inc.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
So Tesla is facilitating a loan for the buyer at a bank, and at the same time offers the customer a "way out" after 3 or 5 years, with a buy price of 34% of the original purchase price after 3 years? And the goal of all this is that people who wouldn't normally consider buying a $100k car will now "realize" that they can afford one? Does this not make the S a bit less exclusive? And it gives me some associations to the way some institutions were pushing houses/real-estate to people who couldn't really afford it a few years ago... something that didn't end very well for the economy right?
guaranteed buy back at 43% purchase price of the car after 36 months. So you buy a $100k car, and 3 years later they buy it back from you at $43,000. In other words, you rented a car for 36 months and paid $57,000 for the rental. Actually the bank is fronting 10% so I guess in the end you rented it for $47,000. 
I'm not impressed. I think it's more of just a play on words.
I'm not impressed. I think it's more of just a play on words.
EarlyAdopter
Active Member
Many people, particularly busy professionals, do not have the interest or time to deal with selling a car, but do want a new car every 3 to 5 years. This seems particularly well targeted to that audience.
Not at all. With leases in Luxury car companies it requires a downpayment. This is a 0 down lease which is extremely straightforward. It's also pegged to an indicator in the market and is doing a guaranteed value, there's no need to negotiate capitalized cost which is a huge hassle.
The key here is lost in emotion, the goal of this program is to get widespread adoption and have people try the product out. You build equity with the option to opt out. This is absolutely huge because with a lease you don't own anything.
sp4rk
Banned
ModelS8794
Member
If indeed residual values for Model S turn out better, then yes, that is true. but the point here is that residuals are still a big unknown, and for that segment of the population that wants the car but is used to leasing or used to having a certain comfort about what they'll get on the back end when they decide to sell, this announcement opens up Model S to them with a guaranteed resale value that says a Tesla purchase will not turn out to be any worse than the Merc they may have otherwise chosen.
I still maintain all it means is that they are pointing out that your credit from the government will be greater than what you paid in your downpayment. I see nothing in the text that promises otherwise (it all depends on your interpretation of the word "covered", but it definitely states a 10% down loan).
sp4rk
Banned
+1, but I am not looking at my purchase as a 3 year one. What will my car be worth to me in 10 years? Huge difference.Announcement is less exciting for those of us that have already purchased the car.
Personally I'm a little shocked at the reality that my $100K car may only be worth $43K in less than three years. It may very well be accurate but I had chosen not to perform those precise calculations yet.
Krugerrand
Meow
EarlyAdopter
Active Member
guaranteed buy back at 43% purchase price of the car after 36 months. So you buy a $100k car, and 3 years later they buy it back from you at $43,000. In other words, you rented a car for 36 months and paid $57,000 for the rental. Actually the bank is fronting 10% so I guess in the end you rented it for $47,000.
Tesla will buy it back at $43,000, or the going rate for a 3 year old Model S, which ever is higher. You're guaranteed to get at least $43k, but likely more. This is the part that's key - Tesla is offering a floor on the residual value, it will be no lower than this, but in reality it's just a buy back option at the going rate. Easy to unload the car, get KBB trade-in value, or MB S Class residual should the resale value have plummeted.
Most of us here know it won't plummet, but there are people out there who fear that and won't go near an electric car for that reason.
Most of us here would just as well hold on to the car for a long, long time and shop around for lower interest rates, but there are people out there who like a new car every 3 to 5 years.
Most of us here would spend a little time and try to get more than dealer trade-in for our used Model S, but for many people just being able to drop off the car at year 3 and get a new one is very valuable.
Basically, this clearly isn't targeted at most of us here, as most of us here already bought the car!
This brings in the next wave of owners.I'm mostly disappointed at all the games they're playing with the numbers and hyping.
Really, you can't just give me a residual value dollar amount? You have to reference a completely different car so I can't do the math myself?
Plus all the shenanigans about what my time is worth. IMO the financing page for a vehicle should contain the financing info - the hard numbers. They're still playing marketing games \which I personally do not care for.
Really, you can't just give me a residual value dollar amount? You have to reference a completely different car so I can't do the math myself?
Plus all the shenanigans about what my time is worth. IMO the financing page for a vehicle should contain the financing info - the hard numbers. They're still playing marketing games \which I personally do not care for.
Volker.Berlin
Member
Well... Is it unfair to summarize it like this? Tesla wanted to offer leasing from day one, but given the fact that they are still small and new in the business, and the Model S is such an extraordinary car in every meaning of the word, they could not get any bank behind it. Thus Elon saw fit to back up the Model S' residual value with his own money, which finally convinced some banks to at least do financing with Tesla. Since they wanted leasing in the first place, they called it leasing and emphasized the advantages of financing over leasing at the same time... Is that it?
Less than $43K.
In 10 years our cars will be worth very little due to normal depreciation but mostly because the batteries and tech will be so much better by then.
EarlyAdopter
Active Member
What are you talking about? The financing page does contain the info and hard numbers.
Why so much hate around here? I'm sorry you're not excited about this announcement. Repeat to yourself, "I am not the target of this announcement. I already bought (or am about to buy) a Model S. This brings in new buyers different from us. This is ok."
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