Tesla announced today that the Model S will now be available through a leasing program which is aiming to broaden the car’s availability to more buyers.
In partnership with US Bank and Wells Fargo, Tesla is offering 10 percent down financing on approved credit. The lease rates starts at $1,199 a month for an 85 kHw powered Model S, though Tesla factors in such things as gained time thanks to the use of HOV lanes, money saved on gasoline, and tax benefits to give customers the “true net out of pocket,” which Tesla says will be around $500 to $600 a month.
The down payment will be covered by federal and state tax incentives given to Model S buyers, a savings which normally would have gone back to the leasing company.
The lease term is 66 months, with the option to return the car after 36 months. To offer reassurance to customers, Tesla says that the cars will be bought back at at least the residual value of a Mercedes-Benz S-Class, which is 43 percent after 36 months, according to ALG.
SEE ALSO: Tesla Model S Pricing
Elon Musk, Tesla’s CEO, is also backing up the program with his own money, saying that if Tesla can’t honor its commitment to paying customers the average market residual value after 36 months, he will personally fund the buy backs.
“The program has all the convenience of a lease, but the value of ownership. It gives you the right to give it back to us, but not the obligation,” said Musk in a conference call with media.
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