Last week, Tesla gave some good news to owners of its electric autos — an unconditional warranty on Model S power packs and the availability of Roadsters and Model S’s as loaner models should your EV be laid up for repairs. Today on a media call, Elon Musk announced a new financing option for would-be buyers and informed us that Teslas have a higher resale value than any other car. Because of this, Musk is personally guaranteeing that his cars will have a higher resale value than those from major luxury brands like BMW, Audi and Jaguar (which broadens the guarantee beyond the old one that had the value pegged to the residual value of a Benz S-class). Additionally, the company is now upping its longest financing option from 63 to 72 months to make it easier for folks to get in the driver seat.
TESLA IMPROVES FINANCING PRODUCT WITH BEST RESALE VALUE GUARANTEE AND LOWER MONTHLY PAYMENTS
PALO ALTO, CA — (Marketwired) — 05/03/13 — Tesla Motors (NASDAQ: TSLA) announced today that it is raising the Model S resale value guarantee to be the highest of any premium sedan brand made in volume (excludes rare, low volume or limited edition vehicles). Buying a Model S through the Tesla financing offering now comes with a guarantee that the resale value will be higher than that of BMW, Audi, Mercedes, Lexus or Jaguar.
To protect people that have already purchased a Model S via this program, the guarantee will extend retroactively to anyone that made use of Tesla financing, created in partnership with US Bank and Wells Fargo, from when it was first announced on April 2, 2013. As with the prior resale guarantee, this higher number is also backed personally by Tesla CEO Elon Musk to give owners complete peace of mind about the long term value of the product.
“We appreciate the feedback from a number of journalists and customers that the first version of our financing product wasn’t quite right,” said Tesla Co-founder & CEO Elon Musk. “They were right, so we are fixing it and, moreover, upping the ante by providing the best resale value guarantee in the automotive industry. The Model S is rated by Motor Trend, Automobile Magazine and many others as the best car of 2013, so it should naturally therefore have the highest resale value.”
In addition, our financing partners have agreed to provide longer term loans that reduce the monthly payment considerably. Those who buy the Model S electric car for personal use will now pay a monthly rate of $580 taking only gasoline savings into account. When purchased via a business, assuming 70% of miles are for business use, the depreciation benefit further reduces the effective monthly cost of owning a Model S down to $315.
For those in careers that have a significant cost of time, such as doctors, lawyers, consultants and executives, the Tesla financial calculator makes it easy to factor in the value of time saved by being able to use the carpool lane or avoid trips to the gas station. However, this is now selected off by default and the above numbers do not include any consideration of time saved.
Tesla’s goal is to accelerate the world’s transition to electric mobility with a full range of increasingly affordable electric cars. California-based Tesla designs and manufactures EVs, as well as EV powertrain components for partners such as Toyota and Daimler. Tesla has delivered almost 10,000 electric vehicles to customers in 31 countries.