PHOTO CAPTION: Tesla Motors CEO Elon Musk.

Tesla Arranges Special Financing on Model S

Elon Musk announces a 'built from the ground up' finance program that combines the best features of automobile ownership and leasing.

Published: 02-Apr-2013

Tesla CEO Elon Musk wisely waited until after 'April Fools Day' to make his BIG announcement. For nothing down and $500 a month you can own a Model S, is the deal in a nut shell.

And to further alleviate buyer anxiety about resale value, Tesla will buy back the car after three years at the same residual value of a Mercedes S-Class luxury sedan. Musk also added his personal guarantee.

The no-down payment aspect of the deal is made possible by Wells Fargo and US Bank financing it, using the $7,500 federal tax credit and any applicable state incentives as the collateral.

Here's the official company statement on how the program will work:

The company sees this as an entirely new financing model, noting...

Most people throughout the world prefer to own their belongings, rather than rent what is essentially someone else’s property via a lease. However, leases do provide some key benefits, particularly a low initial payment, tax deductions, lower risk on resale value and the convenience of returning a car without the hassle of reselling it personally.

Like the Model S, this product was created from the ground up to provide maximum benefit to consumers, rather than simply duplicating other financing programs that tend to favor companies at the expense of the individual.

This arrangement, Tesla states, offers the best of both ownership and leasing. Presumably it will become available immediately.

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