May 3, 2013
Cosmacelf http://www.teslamotors.com/about/press/releases/tesla-improves-financing-product-best-resale-value-guarantee-and-lower-monthly-�
May 3, 2013
AnOutsider So basically, the "lease" thing again. They lowered monthly payments and improved resale value.
�
May 3, 2013
Citizen-T Much better. I like it.�
May 3, 2013
gaswalla great companies listen to criticism with an open mind. great work�
May 3, 2013
brianman While this is "just a math" announcement, it's a pretty clear "we listened, and we're updating to address concerns" with a very quick turnaround in response to criticisms. Lots of TMC chatter on the calculator being "too aggressive", for example, and they've attempted to deal with that swiftly.
Whether it's exciting or not, credit is due for being responsive and fast in doing so.�
May 3, 2013
ShortSlaver Excellent. If I didn't live in NYC ( I don't even own a car ) I would buy this today.�
May 3, 2013
AnOutsider I agree. I'm not sure if Elon has just gotten back in the driver's seat or if the company is finally catching their breath, but they've been knocking the ball out of the park lately.�
May 3, 2013
bonnie Careful, you're about to lose your 'curmudgeon' status. :tongue:�
May 3, 2013
ShortSlaver We all know this, but it's nice to see:
' Tesla has delivered almost 10,000 electric vehicles to customers in 31 countries.'�
May 3, 2013
deonb Eew. Website not quite formatted correctly:
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May 3, 2013
jeffro01 Well to go to 72 months the down payment goes to 15% from what I can tell from their website. Still not really all that impressive if you ask me. Tesla would do better if it could financially afford it's own in house financing arm.
Jeff�
May 3, 2013
Alpha Announcement to begin in ~2 minutes
http://ir.teslamotors.com/eventdetail.cfm?EventID=129544
(Music on hold)�
May 3, 2013
bonnie I'd rather have them keep their focus where it currently is.�
May 3, 2013
joefee CNBC just reported the change�.I hope Elon has more good news�this alone could have been just a press release IMO.�
May 3, 2013
aznt1217 Takes time man relax.
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May 3, 2013
Citizen-T Yes.�
May 3, 2013
joefee Tesla Motors site �undergoing maintenance"�
May 3, 2013
brianstorms "...and with that, I'll turn the call over to Tesla Motors CEO, Elon Musk."
""Um. uh. eh. um. eh. Um. And. Um. Eh. . . . etc."
Elon is great BUT . . . . I wish Elon would get some coaching on public speaking. He insists on perfection in the cars, in the factory, in the experience of ownership, but then when he opens his mouth, it's stammering, bumpy speech that is not clear, commanding, confidence, and smooth. He really needs to polish his presentation. It's getting old.�
May 3, 2013
ToddRLockwood The handling of this situation speaks louder than the offer itself. Excellent job.�
May 3, 2013
Zythryn Guaranteeing residual value to be at least as good as the best residual value of any other large luxury sedan is a Heck of a lot better than comparing to the worst. And setting the defaults to only take into account the gas savings and not the others is very welcome to this stock holder/fan/owner.�
May 3, 2013
hershey101 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.�
May 3, 2013
aznt1217 I would think something along the lines of an A7, A6, Lexus LS, Mercedes S, large luxury sedans.�
May 3, 2013
joefee �car in the same price range� not "class"�
May 3, 2013
SoCalGuy Wow - that is good news. Good for Elon and Tesla. He should buy Fisker!!!�
May 3, 2013
sp4rk 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?�
May 3, 2013
NuclearPowered "Meaningful increase in demand" when financing was introed�
May 3, 2013
JohnQ .07/.43=.16=~20% (fudging a little)�
May 3, 2013
brianman 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.�
May 3, 2013
Lump Average age of buyer is 40-45, younger then I would have guessed.�
May 3, 2013
manitou820 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.�
May 3, 2013
ShortSlaver 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.�
May 3, 2013
Bardlebee So this is in the fine print:
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
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?
�
May 3, 2013
aznt1217 Just do it. You can't put a price on happiness... but this certainly made it cheaper lol�
May 3, 2013
hvb Is anyone else disappointed that this guarantee won't apply to those who purchased their car before the announcement and not through Tesla financing? If I had known, I would have gone with them instead of Pen Fed.�
May 3, 2013
Bardlebee 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?�
May 3, 2013
brianman 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.�
May 3, 2013
JohnQ No, I think this is a tide that raises all boats. If a lot of people finance through Tesla then it increases the resale value of all vehicles. I financed through Alliant and I believe this has a residual benefit for me.�
May 3, 2013
Stoneymonster Well, it's possible that this backing will prop up the general resale value of the cars, regardless of how/when it was purchased. Not directly of course.�
May 3, 2013
DJ Frustration 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?�
May 3, 2013
Benz 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)?�
May 3, 2013
manitou820 I was originally temped with the Allied financing, but my big hang up is resale value. My wife and I are only in our mid 30's. We have plenty of income but I don't have significant cash saved to take a huge hit if the Model S were to take a massive dive in resale and I ended up with a brick of a car (very low chance, but with young kids I don't want to do it). Their original lease offer wasn't that attractive, but like I said, this might put it inline with my current car payment (minus cost of gas).�
May 3, 2013
PorscheDealer Yes that is exactly correct BENZ
Yes that is exactly correct BENZ
�
May 3, 2013
jeffro01 I'd rather put down less and have a shorter term, 15% is just to much considering how "cheap" it is to borrow money right now. I hope the 10% option is still there with the shorter term.
Jeff�
May 3, 2013
SigGuy I'm a little confused about how all of this works in practice. So if at the end of the lease term the market actually values the car at 40%, Tesla takes the car back and presumably has a LOT of used cars to sell. As of now, they don't even have a method for selling used cars at all. Presuming MS2 comes out in 3 years and Tesla incentives current owners to upgrade, what's their method of selling 5-,000 to 10,000 used cars (all the same model)?�
May 3, 2013
blackoutRF Site's back up.�
May 3, 2013
vfx Sounds like Marcus has been hacked!�
May 3, 2013
dsm363 What benefit would that provide Tesla as a company?
It is good news though. More realistic numbers on the calculator leads people to think they are more truthful in other areas as well.�
May 3, 2013
aviators99 Correct. It seems like the worst idea ever conceived, but people keep posting it. Why would Tesla want to buy a failed hybrid car company that goes against every last principle Tesla has, including environmental, ergonomic, battery science, aesthetic, and economics???�
May 3, 2013
SoCalGuy It was more of a joke/wishful thinking - Elon is a great CEO and I like the nimbleness of Tesla as a company. Wish Fisker had some of that same blood.�
May 3, 2013
deonb The new calculator and web site front is now up. I think it looks much better now.
Apart from the numbers being based in California (which I'll forgive since it's a Californian company), there is nothing anymore that I find specifically sleezy about the new calculator. Now it's just ordinary fine print (15% down-payment).
Other thoughts?�
May 3, 2013
gregincal Actually, they do already sell trade in cars: http://www.teslamotors.com/preowned
They have 3 years to make adjustments to the method for higher volume.�
May 3, 2013
Zythryn Important note. Your option to return the car for what ever the guaranteed residual value is, occurs at three years, not the end of the lease.�
May 3, 2013
ShortSlaver There's a whole lot of people who would love to buy one of those. You start selling a car for 40k and suddenly A LOT of people can think about affording it. I believe they would be hard to come by.�
May 3, 2013
gg_got_a_tesla My thought too! Last I checked, this site isn't Twitter?!
Great followup announcement today; didn't know I was in the top 1% of US households :tongue: but, expanding the Model S market through this program to the top 10% of US households is huge!! The average buyer may struggle with the math - a car payment is a car payment, it takes some effort to factor in the hidden savings on no-gas - but, that's what we EVangelists are there to help out with�
May 3, 2013
AnOutsider My apologies for not kissing Tesla's @$$ when they don't deserve it.
Simply as of late, they've been acting more like the company I saw when I decided to plunk down money on hope. The COMPANY is what sealed the deal on what I already saw as a great product. I'm glad that culture is blooming.�
May 3, 2013
Norbert They even increased the annual "excess" mileage limit from 12,000 to 15,000 ! Yay!�
May 3, 2013
markb1 http://www.teslamotors.com/sites/default/files/pdfs/tesla-resale-value-guarantee.pdf
50% for the base 60 kWh car, 43% for all options, including larger battery. (Guess that's a counter-argument to buying options for resale value.)
Also, they changed the mileage limit to 15,000, so you'll no longer incur a penalty for driving the miles assumed in the calculator.�
May 3, 2013
Norbert "fine print (15% down-payment)":
The down-payment is actually part of the final number in the calculator, spread over 36 months. It's part of the calculation already.�
May 3, 2013
markb1 The calculator lets you input the down payment, and (for me, anyway) it was initialized to 10%. So I'm not sure what the fine print is about.�
May 3, 2013
Norbert Mine was initialized to 15%. With "fine print" I was referring to deonb's post. I was saying it's not just in the fine print, it is also part of the calculator's monthly cost number, spread over 36 months. Don't know why you saw 10%. Might be you previously changed it in the preceding version of the calculator, and it kept your setting. That would be a tiny bug there, if so.�
May 3, 2013
deonb I just meant that you have to come up with e.g $10000 cash and then you get it back up to a year later.
It's not really fine print I agree. But would have been good if they could have financed this specific part. However, as it stands, over a 3 year period, the calculator is now accurate - unlike before.�
May 3, 2013
gregincal And the text about the down payment in the original site was really unclear. Many people thought there was no down payment. Now it's made very clear:
U.S. Bank and Wells Fargo will finance up to 90% of Model S. In most cases, US Federal and state tax credits ranging from $7,500 to $15,000 will effectively reimburse your down payment, incentives that are not available with leasing.�
May 3, 2013
Benz On the Financing page of the Tesla Motors website, I see three different Tesla Model S cars, in 3 different colours.
The car on the left side is black and has a 60 kWh battery pack, and the estimated monthly payment is 916 USD. With no options?
The car in the middle is blue and has a 85 kWh battery pack, and the estimated monthly payment is 1,045 USD. With no options?
The car on the right is red and has a 85 kWh battery pack (and is the Performance model), and the estimated monthly payment is 1,239 USD. With no options?
I assume that the monthly payment will be higher if the customer chooses any options?�
May 3, 2013
Norbert The design studio shows how options affect the monthly cost.�
May 3, 2013
Johann Koeber I was wondering similar when they announced the sale of the loaner car.�
May 3, 2013
ItsNotAboutTheMoney Certified Pre-Owned | Tesla Motors
Currently just Roadsters, but my guess is that it'll work for Model S. Hell, Tesla sells over the web and owns its own service centers. I think they'll do fine.�
May 3, 2013
Norbert Not 100% sure, but I think the guaranteed resale value is fixed (for you) at the time you buy the car (currently about 50%). (Fixed in an absolute amount of $).�
May 3, 2013
CapitalistOppressor That sounds right. A week or two ago I was looking at deliveries being right around 9,500 by the end of April. Probably closer to 9,700 right now and they could well hit 10k by the conference call.
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The Q/A had much more interesting info than just the press release.
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His brain might not be capable of speaking in the way you describe. Speaking talent isn't all about skills. Often you'll see really brilliant people who are dyslexic or stutter, etc. Elon often stutters, which is what you are hearing as "bumpy."
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Read my blog post on Large Luxury Sedans and follow the links to goodcarbadcars.net.
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No, he means class. I doubt he intends to peg the price to that of sports cars and whatnot.�
May 3, 2013
Krugerrand I believe it's a matter that his brain is working faster than his mouth, unlike so many of us whose mouths (or fingers) work faster than our brains. :wink:
The man doesn't have to be exceptional at everything. And he doesn't have to try to be exceptional at everything. I like that he's not some smooth talking politician type. That way I can remain believing that he's human and not some otherworldly being...like a Martian. :smile:�
May 3, 2013
jerry33 So you'd rather have him talk like some politician where the only thing that comes out of their mouths is...well, you know?
Sorry, but I like his speaking style. It's down to earth and you can tell he really means what he says.�
May 3, 2013
DonPedro This is a weird statement. You purchased a financing product from a one vendor, and then you are surprised that you don't get benefits that another offers its customers? Remember, the guarantee is part of the Wells Fargo financing package - the loan is bundled with an insurance. You opted for a cheaper loan without the insurance. Yes, I can understand your disappointment that a better product was launched after you made your decision, but in all fairness it is pretty obvious that Tesla have been doing their best to launch the right product as fast as they could.
You could go to your own vendor (Pen Fed) and ask them what they will do to match the improvement in their competitors' product (but I would not get my hopes up).�
May 3, 2013
CapitalistOppressor Yes, Tesla would eat the difference. Selling the used cars is something they have done for years now with the Roadster.
In financial terms, it's not unreasonable to expect that the Model S will have residual value such that Tesla wont have to make up the difference. Real depreciation is largely a function of marginal cost of ownership. As capital goods age, their maintenance costs increase, which means that your marginal cost of ownership goes up. The faster that a product wears out the greater its depreciation.
But "wear and tear" is not the only factor. Marginal cost of ownership includes operational costs. Lower relative operational costs (aside from maintenance) also result in less depreciation. So a device which is more efficient will depreciate slower than a device which is less so. There are other factors in play, but that's the basic economics.
A 10 year old Toyota has a much greater value than a 10 year old Chevy because the marginal cost of ownership of the Toyota is much lower as it ages. This is because it's both much more durable and much more efficient to operate.
An 85kWh Model S is likely to be the most durable automobile ever made, from a mechanical standpoint, and even factoring in battery degradation (by far. Someone should do a study on this and become famous). It's also almost certainly the most efficient car ever made on a per pound basis. I haven't actually done the math, but the little electric econoboxes probably weigh ~3,000lbs while the Model S is ~4,800, while its maybe only 20-30% less on MPGe. The engineering in the Model S is just amazing in that respect.
Once the market figures this out (it might take a decade or more for the market to properly sort this out), a Model S class vehicle is likely to have amazing resale values compared to traditional ICE vehicles. This factor is really under appreciated when folks are talking about if or how the Model S will reshape the Market. Product replacement will be much more tied to fashion rather than actual need.
An ICE vehicle which has been driven hard (45k miles in 3 years) has used up ~25% of its economically useful life, and is on the verge of having to deal with rapidly escalating maintenance costs. This fact drives the basic 3-5 year replacement cycles we see in the auto industry.
For a Model S, the equivalent number is likely closer to 10%, and 5% isn't completely insane to contemplate.�
May 3, 2013
DonPedro Well, there is also a psychological factor of "new" vs. "preowned". I believe any product with any kind of "luxury" element attached to it loses 10-20% of its value the moment you take it out of the box and use it.�
May 3, 2013
CapitalistOppressor Yes, that's one of the "other factors". Also, at the luxury level cars have lower relative utility because luxury cars do the same basic thing as a Camry, which tends to undercut them relative to an actual Camry once it enters the secondary market. But the basic economics is still there.�
May 3, 2013
ckessel Obviously that is the single and only possible outcome of improving one's speech.�
May 3, 2013
hvb Wells Fargo isn't guaranteeing the resale value of the car - Tesla and Elon are. WF is merely taking care of the financing aspect. My point is that I would be willing to go with a higher interest rate for that guarantee. Frankly, I think the guarantee should apply to any Model S sold, regardless of whether it was financed or paid for outright.�
May 3, 2013
AlMc I disagree. I believe that if they wanted to sell more vehicles then the 50% residual guarantee should apply to ALL vehicles purchased. It would be a great marketing tool for Tesla to say that the first 20,000 vehicles sold would have this guarantee. If after the first 20K sold the demand dropped some, then extend it. They need to get their product on the road. This is an expensive, new product (I admit a great one)...�
May 3, 2013
DonPedro We don't know what the commercial arrangement is between the various partners that offer this financing product (including the put option for the car).
In other words: A better product was launched after you bought. This happens to everyone, and it is unrealistic to expect anything else.
I can understand that you would like that to happen. However, this statement seems to imply some sort of obligation on Tesla's part to offer this to you. I do not quite understand why they should be obliged to do so.�
May 3, 2013
hvb Well said, AIMc. And Don Pedro, I don't think Tesla owes me anything. I was merely expressing an opinion. That is allowed, right?�
May 3, 2013
DonPedro
Sure, and I was merely debating it. That what happens when you express your opinion on an online discussion forum.
�
May 4, 2013
brianman I kind of wish my Model S had an original box. It would have been challenging to transport home though.�
May 4, 2013
kcveins But it would be fun for the kids to play in...�
May 4, 2013
AlMc This is an improvement over the original 'lease' offer and there is no doubt these are great cars. It would appear that the reasons for this program are to put more people in a financial position to afford an 'S' AND to make buyers comfortable that this vehicle will maintain a residual value equal to it's class ICE competitors. However, it is basically unfair to the buyers/potential buyers in the 42 states where this financing option/guarantee is not available and to the people who would pay cash. Brand loyalty is built in many ways. One of those ways is to give all your customers/clients the opportunity to take advantage of all your offerings. Personally, I would have made this residual guarantee available to all my customers for a limited time or to a limited number of vehicles. If the program was well accepted and I felt that it was drawing in more consumers I would extend it. We have all described this car and company as a 'game changer'. Offering this peace of mind residual value guarantee to all would have been in line with a company that wants to change the game and is confident enough in its product that it would make such an offer.�
May 4, 2013
Krugerrand Two things:
1)Tesla's main goal: to accelerate the worldwide adoption of EV's.
2)Owners with cars that have not/do not take part in the financing program still benefit from the personal guarantee. The personal guarantee sets the used Model S market for ALL. There essentially already is a 'limited number of vehicles' - those part of the financing program. Adding a limited time etc... only causes someone else (perhaps you again) to say that the limited time wasn't long enough, therefore not fair and therefore not a big enough show of confidence in the product, etc., etc., etc... Perhaps in the future when Tesla is making real money, the guarantee will be extended, but I'm really not sure how much further out on the limb you want Mr. Musk to go at this point; he's already hanging his butt over the ledge.�
May 4, 2013
bonnie +1
You make a really good point, one I had not really thought about. The guarantee will impact the overall used Model S market price. Genius.
And yeah, give the guy some credit. You can choose to buy or finance/lease. No one is forcing you to do it one way. We used to joke at a former employer that if we handed out unexpected large bonuses, we'd have people complaining that we should have told them in advance so they could factor it into their tax strategy. Musk is handing out an unexpected bonus and we're talking about it's not good enough? Seriously?�
May 4, 2013
Bardlebee I guess I still don't understand the leveraging of the EV purchase tax as down payment thing.... how does WF use your EV tax incentive as a down payment? This confuses me.�
May 4, 2013
vfx It appears you are not counting Roadster sales.
Roadster again.�
May 4, 2013
mulder1231 No, you pay the downpayment. You get about the same amount back through the federal tax deduction and using local and state rebates.�
May 4, 2013
vfx Exactly to what I have been saying that the resale value of EV should be better than ICEs but they are subject the the legacy resale values of ICEs since there is not enough history to support the advantages yet. I was gving it about 10 years.
What Tesla has done here with this guarantee is accelerate this public perception of Tesla's resale value and with any luck it will overflow into all fully electric cars.�
May 4, 2013
brianman I'm not sure which post you're referring to so I've pulled out hvb's post since it's the first one I recall on this discussion point. The word used was "disappointment" not phrasing like "it's not good enough". Perhaps you're referring to the tone of some of the replies (or a different post entirely).�
May 4, 2013
bonnie Hahah! Not EVERYTHING is about you, Mr. brianman.�
May 4, 2013
AlMc I believe you have missed my point. I see the marketing strategy here as two fold. First, open up the 'S' to more potential purchasers. Second, to allay fears of many who would buy the car versus an ICE sports sedan but are reluctant because they have some historical perspective on the ICE residual value but none on the 'S'. This marketing tool/offering is limited to people that live in 8 states. The other 42 states are left out due to some legal wrangling that has yet to be worked out, I assume. This is not a lease program where a definite residual value needs to be set. Thus, anyone who does not live in one of the 8 states where this program is available do not have the opportunity to participate either in the benefit of the loan program or the guaranteed residual value. Certainly Mr Musk and the rest of the Tesla Team need to be congratulated on making a superior 'game changing' car and for some of the innovative marketing ideas they are employing. I will get benefit from setting a residual value baseline, even if it is artificial. All this builds brand loyalty. Excellent. However, what can hinder the building of such loyalty is the fact or perception that a benefit given to some customers is not available to all customers when they are paying the same amount for their vehicle.
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PS..If I have offended anyone, I apologize. I am trying to offer an opinion that hopefully will encourage thoughtful and courteous discussion.:smile:�
May 4, 2013
brianman Chuckle at "everything". Nah, I didn't think it was. And I'm glad it's not. I'm an introvert mostly.
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Well stated.�
May 4, 2013
hvb Obviously, I agree that features should benefit all owners. It's only fair, right? On the other hand, I can also see why this guarantee is geared toward new owners. Ostensibly, someone who already owns the car had enough confidence in Tesla to take the risk of early adoption. The resale value guarantee helps to court those who are still on the fence and need that extra bit of assurance to take the plunge.
After having the Model S for the last two months, I can say with great enthusiasm that it's an awesome car. I feel more conviction than ever than Tesla is a superlative company. I don't plan on selling my car anytime soon, so that's not why I'd like the guarantee. I guess I just like hedging my bets against the off-chance that some unforeseen defect or recall might sink the company.�
May 6, 2013
AlMc I was just on the Official Tesla Forum. One Subscriber/purchaser indicated that this product was not available in his state. However, he indicated that he set up to sign the documents in California, where it is allowed...He had toFly/drive there and was allowed to participate in the Wells Fargo/Tesla guaranteed residual value financing. He indicated he also will still take delivery in his own State. No tax in California, but will pay applicable taxes in his home state. Interesting. Anyone else do this?�
May 6, 2013
Jack_L It appears that this financing product is actually available in states other than those listed online. I live in Mass and have been told that the guarantee program/WF financing is available to me. I even called back a few days later, spoke with a second Tesla rep, and again was told I can participate. It seems their program is growing faster than the website can keep up with so I'd advise anyone interested to check with Tesla directly to check actual availability.�
May 6, 2013
Krugerrand Nobody in Canada or Europe or Asia can get in on this program either. Have a little patience. It'll come. Your first post made the assumption/gave the impression that it's going to be like 'this' forever and how terribly unfair that just such and such a group gets benefits but not the rest. First, the world isn't fair and that's just sometimes how the cookie crumbles. You don't like your set of circumstances, then change them. But in truth, it's (the financing program) not going to be like 'this' forever. Indeed, have we not just had a change to it and it was only a couple weeks old? :wink:
Some people think it needs to be all about them and simply can't see the bigger picture and how they are benefitted anyway, unless their name is up in lights. You can't change what those people think or perceive, so there's no sense trying. Everyone who owns a Model S is benefitting from this financing program - just as it stands - whether they see it or not.�
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