New Buyback Details - Now I'm Impressed.

New Buyback Details - Now I'm Impressed.

Here's the link:

I was disappointed when TM first announced the Buyback Program. It was based on a MB S-Class with rapid, class-trailing depreciation. The new policy includes class-leading benchmarks such as Lexus. Now I'm impressed.

Do others feel the same way?

nickjhowe | 3 mei 2013
Vern110 | 3 mei 2013

Does any of this help people (in terms of resale value) who financed the vehicle prior to these offerings?

pvetesla | 3 mei 2013


Now I just need my CAR!!!!!

David Trushin | 3 mei 2013

Generally speaking, resale values should go up for all owners because of this. They may not be as high as for the finance holders, but would be better than without it.

jk2014 | 3 mei 2013

Like a neighbor selling their house for big money. Helps lift the rest of the block.

michaelwm | 3 mei 2013

Nonsense. This doesn't actually raise (buyer-visible) resale values. In fact, if anything, it makes sellers who originally financed with Tesla more willing to accept less money ("why should I hold out for more, when Tesla will make up the difference for me?").

So Tesla-financed cars will sell for less money than they otherwise would. Which put DOWNWARD pressure on all cars, including those that weren't Tesla-financed.

This is a really great announcement for everyone who financed. It's potentially bad for those of us who didn't.

eAdopter | 3 mei 2013

Call TM and ask. In the past they have been very accommodating. Please post your findings here.

GettingOldFast | 3 mei 2013

@vern110 - Yes. The release says, "To protect people that have already purchased a Model S via this program, the guarantee will extend retroactively to anyone that made use of Tesla financing"

kickgas | 3 mei 2013

What if you didn't take advantage of Tesla financing? I went thru Pen Fed @ 1.49%

DouglasR | 3 mei 2013

@kickgas - the buyback offer applies only to those who finance through TM.

This is definitely an improvement, but the calculator is still misleading. Down payment has increased from 10% to 15%. Federal tax incentive is assumed (cannot be deleted), but no state sales taxes can be included. Annual mileage is 15,000 with gas at $4.90; we are not told how much electricity is used.

Most important, the fuel cost difference is subtracted from the monthly cost, which makes the monthly cost seem lower than it actually is. Logically, there should be two columns, one for the Model S and one for a competitor, with electricity costs ADDED to the first column and gasoline costs ADDED to the second column.

michaelwm | 3 mei 2013

Hmm. Looking at the actual terms of the guaranteed value program, I was wrong:

I assumed that the guarantee was in the form of payment for the difference in private sale value vs guaranteed value. It's not. It's instead a guaranteed buyer (Tesla Motors / Elon Musk) for a guaranteed price. The effect on the market of non-guaranteed cars is probably good, in that case. My bad!

STARR X | 3 mei 2013

Another opportunity for Tesla. I see a huge market for used Teslas! And something I have been thinking about. With all the different dealer laws, do any of them say a car manufacturer can't have a used car lot?

stimeygee | 3 mei 2013

That calculator is MUCH more realistic now. And the new offer is great. This is actually a really big deal. Too bad they didn't make this offer and clean up the calculator the first time - would have saved them some PR headaches and now it's probably too late to make up for missed headlines. But still, better late than never! For people actually looking at buying the car, this should really be helpful.

pvetesla | 3 mei 2013

Look...the truth is I'm not selling...and I doubt many will (as compared to other cars) This is just great business. Tesla is a new company and anything they can do to help people feel a little more comfortable making an investment the better.

AlMc | 3 mei 2013

This is good for everyone and a good PR move for Tesla. Not as helpful for me as it is for others since I do not live in one of the 7 states where this financing/buy back applies.

Now....If they wanted to do a HUGE boost (this is not a complaint, just wishful thinking)....Guarantee the resale of the car for all buyers, regardless of financing/straight purchase/the state you live in.

Brian H | 3 mei 2013

Yes, it's dealing with anticipations, uncertainties, etc., that might undercut some potential buyers' interest. Smoothing the way.

herkimer | 3 mei 2013

Yes! Thank you, TM, for this move. MUCH better!
Now, presented in so much more of a straight-forward way, the financing deal is more compelling, and really IS affordable for a broader customer base.

Just moments ago one friend of mind, (who I didn't expect to even give the model S a second thought), saw this and you could just see the wheels begin turning! He actually started to believe it could be possible! And then he started wanting one!

Something like psychological salivation, I suppose....

Tesluthian | 3 mei 2013

Is there such a thing as a secondary or used car lease, where people turn in there 3 yr cars and Tesla turns around and re-leases them for another 3-5yrs ?

If so, would that lower the lease another couple hundred bucks a month on a 3 or 5 yr secondary lease of a 3yr old car ? Similar terms, guaranties , etc.

Brian H | 4 mei 2013

TM doesn't yet offer a real lease at all.

Tesluthian | 4 mei 2013

The question was what would the payment be, not what you would call it ? People are much more interested in the payment amount, not what you call it.

mkidding | 4 mei 2013

Went to the Menlo Park shop today and they told me it's gonna be around 50% with the new policy. A decent increase from the original 42% but still, I'm sure that people would pay more than that for a 3-year-old Model S that's not been abused.

EVMD | 14 augustus 2013

I read the program for resale value. If you buy or finance trough Tesla, you will be guarantee a resale value not less than Mercedes S class porcentage. Good but the problem is that the value of the car for Tesla is base on the 60 Kw plane with no extras. So if you buy a P85 for 100K plus, the price they value the car as paid as new is just 63K. Wow that is low. So in theory you will get for 100K car 24K buyback.

studiojon | 14 augustus 2013

No, because the options are factored in at 43% in addition to the base... So 50% of base plus 43% of options is the value. 85 or P85 are now "options" on top of the base 60.

GeekEV | 14 augustus 2013

Not to mention Elon later changed it to better than "any mass produced premium sedan", not just the S class. Right?

TommyBoy | 14 augustus 2013

Be careful of the buyback guarantee. I looked at it pretty closely for a few days before I settled on outside financing. I could never make the numbers work in my favor.

Best Tesla could offer was 2.80% and I ended up putting half down and half at 1.39% over 60 months. The savings was substantial - somewhere around $3K-$4K. Tesla kept trying to jam me with a 72 month lease instead of the 60 month I asked for and they didn't want to move off that rate at all. I have enough in the bank to pay cash for the car outright, no debt and a credit score over 800 and they seemed disinterested.

I sent a couple of emails back and forth and they told me I had to have the loan open and in good standing as of months 36-39 in order to take advantage of the buyback. It just was never worth it to me. The only thing it would really save me from would be if Tesla completely went under, they declared bankruptcy, and the market for used Tesla Model S's was completely saturated. If that happens I don't know if I'll even care about the $40K that Tesla will give me and I'd probably just keep driving my car for another 5 years until it's paid for itself.