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>loan with a put option But this article is really light on details: 1) Is put option available without the loan? 2) Is it available for longer than 36-month
by vl 14y ago
>loan with a put option
But this article is really light on details:
1) Is put option available without the loan?
2) Is it available for longer than 36-month period?
If I decide to buy Tesla, it's unlikely I'm going to be replacing it in 3 years, more like 6-8 years. And I think that there is a good change that in 6 years resale value will be 0 - with more advanced battery tech available and with cheaper models around, and with old battery Model S may turn out to have no value in 6 years. So this kinda stops me from considering it.
- stevewilhelm 14y agoAs you pointed out, given how fast electric vehicle technology is changing, it seems unlikely the typical Tesla S owner would want to own one for more than three years.
- joncooper 14y agoThere is no reason why this structured financing entity would sell a put (taking on a liability) without an offsetting asset, the loan receivable. Nobody wants to be in the cash and carry downside vol business with an unhedgeable underlying.
- smallegan 14y agoElon could offer the same personal guarantee to cash buyers?
- vl 14y agoWell, may be offer this options for a price or something. They did bet that resale value will be higher than certain amount. Moreover, if it's higher, than what stops you from selling yourself and just returning the loan? I.e. it seems that they are not going to benefit from upside, but will suffer from downside - if resale value is lower, all people having this option will execute it. On other hand if enough buyers will buy this option, this will effectively set the market price of the used car (as lease does for 3yo BMWs, for example). Anyway, it seems they punish current cash buyers if this option is not available for them.
- scragg 14y agoThe offer is available between 36 and 39 months. http://www.teslamotors.com/sites/default/files/pdfs/tesla-resale-value-guarantee.pdf http://www.teslamotors.com/sites/default/files/pdfs/tesla-re...
- vl 14y agoWell, this answers 1) as well: this doc requires that "The Vehicle is financed through Tesla’s direct vehicle financing program".
- scragg 14y agoAre you reserving one? The negative to this offering is I am limited to 2 lenders so I might pay alittle more in interest versus a credit union. I think this program requires an additional $8/month as well. It gives me an exit plan if for some reason I want to get rid of the car relatively easily.