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Tesla Motors, Inc. Message Board

  • sam_klemens sam_klemens Apr 3, 2013 11:43 AM Flag

    The lease program will increase sales

    The lease program has to give a large boost to Model S sales. Before this program your only option was to pay cash. Now you can pay cash or take out a Tesla lease. How can this hurt sales? Forget about the "out of pocket" $500/month arithmetic, having the option to lease has to increase sales. Here is how Bloomberg Businessweek describes the lease program.

    " U.S. Bank (USB) and Wells Fargo (WFC) will provide financing for people—with good credit—who make a 10 percent down payment on a Model S sedan. Tesla points out that federal and state tax credits offset much of that down payment and says people could, theoretically, end up paying $500 per month to drive a Tesla."

    "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."

    "In reality, though, aspiring Tesla drivers may expect to pay more than the $500-per-month figure Tesla championed. The company has put up a handy calculator to show expected monthly payments, and people can make their own subjective estimates about how much not having to spend time going to gas stations is worth to them. People in states with big electric vehicle incentives, or who drive their Tesla for work, or who value their time very highly, will pay less; others can expect to pay more."

    Musk described the financing effort as yet another step to removing any doubts around the practicality of electric vehicles, including people who worry that the battery life of their car will diminish over time and saddle them with a devalued car. “There is a lot of uncertainty,” Musk said. “We wanted to eliminate that uncertainty.”

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