Tesla's founder, Elon Musk, introduced a "revolutionary" new financing option for the Model S.
Hoping to improve the affordability of the company’s new battery-electric vehicle while also addressing the concerns of EV skeptics, Tesla has announced a “revolutionary” new financing program that is designed to cut costs while also giving customers an out if they’re not happy with their new Model S sedans.
Working with Bank of America, the program combines a low interest rate, minimal down payment – and the ability to return a Model S after three years and receive a guaranteed residual – essentially a trade-in price – pegged to the value of a Mercedes-Benz S-Class. But unlike a traditional car lease, Tesla buyers who like their vehicles will simply be able to keep them and pay off the rest of their loans.
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The goal of the program was to “combine the best of ownership and leasing,” said Tesla founder and CEO Elon Musk during a conference call with reporters today. “There has to be a better way,” he stressed, noting that he expects “a majority” of future Model S buyers will participate in the unusual loan program.
