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Tesla announces new way to finance its electric cars, a hybrid between leasing and owning

Introducing ‘Tesla Financing(TM)’
Tesla Motors has never been a company that did things like everybody else, from its electric cars to its stores to its charging stations. Today, they’re innovating on financing:

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.

Bottom line
So basically, you get the benefits of buying (you can keep the car as long as you want), but like with leasing, you have the option of returning the car after 36 months for the equivalent of not less than the percentage of residual value of a Mercedes S Class (which should reassure those who don’t think Teslas will age well and retain value). As Tesla mentioned, if you lease you don’t get access to the financial incentives provided by various government levels for buying plug-in vehicles, something that this hybrid financing option does get access to. This type of financing also allows you to sell the car at any point, unlike with a lease. They’ve tried hard to make it the best of both worlds.

This new type of financing will only be available in the U.S. at first, though Mr. Musk mentioned that they’re working on ways of making something similar available in Canada, Asia, and Europe. Canada should be next, “within months”, with Scotia Bank as partner, said Musk.
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