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Here's something I can't figure out. I saw a list price of the Model S 60Kw as $62,400. The article says you pay $1,097 for 63 months for that model, and you

by spc476 14y ago

Here's something I can't figure out. I saw a list price of the Model S 60Kw as $62,400. The article says you pay $1,097 for 63 months for that model, and you can sell it back at 43% of the original price. Okay, at 36 months, you've paid $39,492 in payments. Assuming Tesla buys back at 43% of the $62,400 price, or $26,832 and you get that money, then all you are out at the end of 36 months is $12,660 or an effective $351/month (but only realized after three years). Am I missing something here? Is my math off?

olympus 14y ago
No, your math is right. The $500 per month figure is for the 85 kWh car, which is more expensive. Tesla's "calculator" gives roughly the same figure as you for the 60kWh car. That doesn't mean it's comparable to a car payment of $351/month though. If you did equivalent discounting to a car that only had a $351/month payment (maybe some sort of Kia?) then that would come out to be in the ball park of $150/month, but you don't see Kia advertising their cars like that.
- spc476 14y ago
  I did my math on the 85 kWh version and it came out to $417/month (effective after three years and selling it back). But you are right, you don't see other cars being advertised like that.
majormajor 14y ago
After making $39,492 in payments, you still owe $22,908 on the car (well, not exactly, because I'm not accounting for the down payment or for interest on the loan, here—but you don't own the car free and clear). So that $26,832 doesn't all go straight into your pocket if you sell the car back. That's why, in order to get to the $346 figure I'm seeing on loading up the page with the default options for the 60kWh model, most of the "savings" comes from stuff other than the buyback (primarily the business tax benefit and fuel costs). The guaranteed resale value portion is only credited a $40/month benefit.
- spc476 14y ago
  Oh, that's right---I'm not the full owner and most (if not all) of the money goes to the bank. Lovely.

by spc476 14y ago

olympus 14y ago

No, your math is right. The $500 per month figure is for the 85 kWh car, which is more expensive. Tesla's "calculator" gives roughly the same figure as you for the 60kWh car. That doesn't mean it's comparable to a car payment of $351/month though. If you did equivalent discounting to a car that only had a $351/month payment (maybe some sort of Kia?) then that would come out to be in the ball park of $150/month, but you don't see Kia advertising their cars like that.

spc476 14y ago
I did my math on the 85 kWh version and it came out to $417/month (effective after three years and selling it back). But you are right, you don't see other cars being advertised like that.

majormajor 14y ago

After making $39,492 in payments, you still owe $22,908 on the car (well, not exactly, because I'm not accounting for the down payment or for interest on the loan, here—but you don't own the car free and clear). So that $26,832 doesn't all go straight into your pocket if you sell the car back. That's why, in order to get to the $346 figure I'm seeing on loading up the page with the default options for the 60kWh model, most of the "savings" comes from stuff other than the buyback (primarily the business tax benefit and fuel costs). The guaranteed resale value portion is only credited a $40/month benefit.

spc476 14y ago
Oh, that's right---I'm not the full owner and most (if not all) of the money goes to the bank. Lovely.