Just as Tesla isn't in the business of making average cars, it's just introduced a leasing program for the Model S sedan that's not entirely run-of-the-mill. Unique to the company's 66-month lease program, you'll find the option of selling the Model S after 36 months at a price that's pegged to the residual value of the Mercedes S Class. While that may sound all fine and dandy, be warned, if you couldn't afford a Model S before, there's a good chance it's still be a wee bit out of your grasp. The Tesla Model S 85kWh edition runs $1,199 per month, which then becomes slightly more palatable once tax credits are factored in. On the average, individuals can expect to pay between $732 to $940 per month for the privilege of leasing a Model S. Meanwhile, business users stand to benefit even more, who can use tax credits to bring the overall cost down to $505 per month. Feel free to hit up the source links if you now think Motor Trend's 2013 Car of the Year is an expense you can stomach, but for the rest of us, we'll just keep dreaming.
TESLA UNVEILS REVOLUTIONARY NEW FINANCE PRODUCT
COMBINES BEST ASPECTS OF CAR LEASING AND OWNERSHIP
TUESDAY, APRIL 2, 2013
PALO ALTO, Calif.-- 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.