RE: Teslas on finance!
Tuesday 7th October 2014
Everyone has their own opinions on financing a car purchase but we'll leave you to discuss that in the ensuing thread. Here car finance is newsworthy because Tesla is offering a hire purchase scheme for private customers of the Model S. An EV on finance, and one that PH rather rates too. Interesting...
An appealing package becomes even more so?The terms are simple: a 15 per cent deposit and payments from £820 a month depending on the length of the term (from four to six years is available). Tesla talks of an 'effective cost' of £645 a month given the savings the Model S offers compared to conventional cars. The interest rate is 5.9 per cent.
Teslas on finance!
Model S hire purchase scheme guarantees residuals
An appealing package becomes even more so?
Moreover, Tesla is guaranteeing future values for the Model S. So the option is there after 37 months of the agreement to sell the car back to Tesla at 50 per cent of the list price plus 43 per cent of any specced extras. Options include the P85+ Performance Pack don't forget. There is no obligation to sell at this point though and the finance agreement can continue. Simple as that.
What may be harder is running a Tesla. Our road test threw up all manner of charging issues if there wasn't a parking space directly outside your house, and Tesla's Superchargers are only currently in Reading, London, Birmingham and Edinburgh (there are more on the way). Will there be more willing to find out with the car on a finance package?
Discussion
Thought there were already a few supercharger stations in the UK? The Tesla website seems to think so: http://www.teslamotors.com/en_GB/supercharger
PhantomPH said:
So before any options (£68k), it's a £10k deposit and £820 a month? That seems like a hell of a lot knowing that my car was half that, but I pay considerably less than half that per month, with less than a 3rd of the deposit, too.
Those figures give you ownership at the end of Yr 6 though, with a 1600 finance charge. Won't the figures always look a lot worse than a deal with a magic 30k balloon payment hovering in the background?randlemarcus said:
PhantomPH said:
So before any options (£68k), it's a £10k deposit and £820 a month? That seems like a hell of a lot knowing that my car was half that, but I pay considerably less than half that per month, with less than a 3rd of the deposit, too.
Those figures give you ownership at the end of Yr 6 though, with a 1600 finance charge. Won't the figures always look a lot worse than a deal with a magic 30k balloon payment hovering in the background?60x820 = £49,200
Dep : £10,200
Total paid for your £68,000 car = £59,400.00
Nope, there is no way those figures are an 'own it at the end with nothing more to pay' plan.
I saw the Tesla Super Charge area in Reading at the weekend. I don't think it's actually open yet. It is also tucked away on the industrial park behind the Madejski Stadium. Handy for the M4 (about a mile from the junction) but if it's a Saturday afternoon with Reading at home you better hope you've got enough charge to get through the 2 hour traffic jam around the stadium...
kambites said:
So that cost is for complete purchase? As in, at the end of the contract you own the car without having to pay anything else?
Sort of...Edited by kambites on Tuesday 7th October 13:52
Those costs above are for a 3 year term. At the end of it you either give the car back and walk away or finance the remaining 50% (plus 43% of the original options) and re-finance with Tesla for however long you like. So eventually, yes, you'll own the car outright.
The second-to-last paragraph in the article is slightly misleading IMO.
Edited by Miner49er on Tuesday 7th October 14:01
Miner49er said:
Those costs above are for a 3 year term. At the end of it you either give the car back and walk away or finance the remaining 50% (plus 43% of the original options) and re-finance with Tesla for however long you like. so eventually, yes, you'll own the car outright.
That's not how I read it. I read it as saying at the end of the term you own the car and Tesla guarantee to buy it back off you for 50%+43% if you want to sell it. However, the figures look too cheap for my interpretation and too expensive for yours.
ETA: Ah no you're right, it says "the finance agreement can continue". That looks ludicrously expensive then, surely?
Edited by kambites on Tuesday 7th October 14:07
kambites said:
Miner49er said:
Those costs above are for a 3 year term. At the end of it you either give the car back and walk away or finance the remaining 50% (plus 43% of the original options) and re-finance with Tesla for however long you like. so eventually, yes, you'll own the car outright.
That's not how I read it. I read it as saying at the end of the term you own the car and Tesla guarantee to buy it back off you for 50%+43% if you want to sell it. However, the figures look too cheap for my interpretation and too expensive for yours.
ETA: Ah no you're right, it says "the finance agreement can continue". That looks ludicrously expensive then, surely?
Edited by kambites on Tuesday 7th October 14:07
15% deoposit = £10,500
£820/m for 3 years = £30,340
Total Paid = £40,840
Tesla will give you £35,000 to take it back.
So 3 years in a Tesla S has cost £6,000! Bargain.
Miner49er said:
You're right... I'm confused now!
15% deoposit = £10,500
£820/m for 3 years = £30,340
Total Paid = £40,840
Tesla will give you £35,000 to take it back.
So 3 years in a Tesla S has cost £6,000! Bargain.
You're missing a key bit:15% deoposit = £10,500
£820/m for 3 years = £30,340
Total Paid = £40,840
Tesla will give you £35,000 to take it back.
So 3 years in a Tesla S has cost £6,000! Bargain.
It's £35k off the total price, so you (in theory) will get £6k deposit for the next new car you buy. Put another way, they will give you back £6k of the £40k you've already paid.
MacW said:
PhantomPH said:
That can't be right. Even on a 60month deal:
60x820 = £49,200
Dep : £10,200
Total paid for your £68,000 car = £59,400.00
Nope, there is no way those figures are an 'own it at the end with nothing more to pay' plan.
6 years = 72 months60x820 = £49,200
Dep : £10,200
Total paid for your £68,000 car = £59,400.00
Nope, there is no way those figures are an 'own it at the end with nothing more to pay' plan.
Still seems a bit wrong though.
PhantomPH said:
MacW said:
PhantomPH said:
That can't be right. Even on a 60month deal:
60x820 = £49,200
Dep : £10,200
Total paid for your £68,000 car = £59,400.00
Nope, there is no way those figures are an 'own it at the end with nothing more to pay' plan.
6 years = 72 months60x820 = £49,200
Dep : £10,200
Total paid for your £68,000 car = £59,400.00
Nope, there is no way those figures are an 'own it at the end with nothing more to pay' plan.
Still seems a bit wrong though.
Edited by MacW on Tuesday 7th October 14:32
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