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"Honey, look, a Tesla is only going to cost us $580 per month" "No dear, the actual payment is closer to $900" "No. Look here, it says the effective payment i

"Honey, look, a Tesla is only going to cost us $580 per month" "No dear, the actual payment is closer to $900" "No. Look here, it says the effective payment is $580." "Sure, sure. You still have to send them a check for $900." "What? How do we get to $580 then." "Well, they are saying an electric car is going to save you over $300 a month in fuel and proposing you take that into account." "Wait a minute. I don't get it. That can't be true. Can I put the $300 per month in the bank and save-up for a nice vacation?" "Nope. That money goes to Tesla. The real payment is about $900." "That can't be right." "Look, go to that neat cost-of-ownership calculator and set the annual mileage to zero. Let's pretend you are going to buy the car and put it in a museum, never to be driven. What's the monthly payment? About 900 right?" "Let me see... Crap! That's bullshit." "Yup."

nijk 14y ago
Fuel is part of TCO. The problem in the ad was in claiming the business deduction and the hourly wage for not gas pumping
ricardobeat 14y ago
No one factors in gas costs to their monthly payments. Tesla is trying to get you to do just that, which is totally fair.
- bradleyland 14y ago
  That's a fair enough argument, but the fuel expense figures Tesla uses are far too generous. This is the kind of disingenuous marketing that turns people off. If I go to their True Cost of Ownership page right now, the "Electricity vs Gasoline" section defaults to a savings of $261/month. According to Mint, I spend $116.75/month (average) on gasoline. The little graph shows the national average is somewhere between $165 and $220. The graph is small, but the bar is about halfway between. Being generous, that'd put the national average at around $200/month on gas. So Tesla is giving themselves a benefit of around $60 above the national average. It seems like a minor point, but "fudging the numbers" doesn't seem consistent with the character that Tesla is trying to build for itself.
  - deleted 14y ago
    [deleted]
- robomartin 14y ago
  No it isn't. It's creative math to get the mathematically challenged to jump in. Since math illiteracy in the US is common this is a very smart way to get idiots with money to buy in. OK, say I have never owned a car and just got a job making $900 per month. No other expenses in my life. I jump on this deal. I then send 100% of what I earn to Tesla. Not $500. I have to send them all of it. I don't get to magically deduct fuel I will never purchase and pretend I am spending less. My bank account would be empty every month.
  - deleted 14y ago
    [deleted]
  - ricardobeat 14y ago
    Do you really believe that could happen? I bet that guy owns a lot of property on the moon. A lease wouldn't even be approved with that salary in the first place. Different scenario: you get a job making $900/month and you jump on an offer for a $400/month car. It never crosses your mind that you'll have to pay for insurance, gas, maintenance and taxes and you end up spending your whole salary on it. This actually happens all the time. As stated on Tesla's page: This calculator is intended to give you an idea of how much you can save by driving Model S compared to a gasoline sedan. We also encourage you to think about Model S ownership in terms of true out of pocket cost. When considering the savings from using electricity instead of gasoline, depreciation benefits, and other factors, buyers can save hundreds of dollars per month compared to owning a gasoline powered car.
    - robomartin 14y ago
      Oh please, it was a dumb example to highlight the reality of the deal. I am buying a Tesla. I am tired of gasoline and I like the car. I am simply not delusional as to the real cost of the thing. Actually, I am buying two. The next one has to be an SUV though. I just wish they didn't resort to cheap-car-salesman techniques. I had a friend get excited about buying a Tesla because he thought it would cost him $600 a month. He was not happy to learn that the real cost was closer to $1,000. Now he thinks Tesla is a huge scam. I doubt he will ever consider their cars again. Based on that data point alone I have a feeling this creative financing campaign could be damaging their image to some degree.

nijk 14y ago

Fuel is part of TCO. The problem in the ad was in claiming the business deduction and the hourly wage for not gas pumping

ricardobeat 14y ago

No one factors in gas costs to their monthly payments. Tesla is trying to get you to do just that, which is totally fair.

bradleyland 14y ago
That's a fair enough argument, but the fuel expense figures Tesla uses are far too generous. This is the kind of disingenuous marketing that turns people off. If I go to their True Cost of Ownership page right now, the "Electricity vs Gasoline" section defaults to a savings of $261/month. According to Mint, I spend $116.75/month (average) on gasoline. The little graph shows the national average is somewhere between $165 and $220. The graph is small, but the bar is about halfway between. Being generous, that'd put the national average at around $200/month on gas. So Tesla is giving themselves a benefit of around $60 above the national average. It seems like a minor point, but "fudging the numbers" doesn't seem consistent with the character that Tesla is trying to build for itself.
- deleted 14y ago
  [deleted]
robomartin 14y ago
No it isn't. It's creative math to get the mathematically challenged to jump in. Since math illiteracy in the US is common this is a very smart way to get idiots with money to buy in. OK, say I have never owned a car and just got a job making $900 per month. No other expenses in my life. I jump on this deal. I then send 100% of what I earn to Tesla. Not $500. I have to send them all of it. I don't get to magically deduct fuel I will never purchase and pretend I am spending less. My bank account would be empty every month.
- deleted 14y ago
  [deleted]
- ricardobeat 14y ago
  Do you really believe that could happen? I bet that guy owns a lot of property on the moon. A lease wouldn't even be approved with that salary in the first place. Different scenario: you get a job making $900/month and you jump on an offer for a $400/month car. It never crosses your mind that you'll have to pay for insurance, gas, maintenance and taxes and you end up spending your whole salary on it. This actually happens all the time. As stated on Tesla's page: This calculator is intended to give you an idea of how much you can save by driving Model S compared to a gasoline sedan. We also encourage you to think about Model S ownership in terms of true out of pocket cost. When considering the savings from using electricity instead of gasoline, depreciation benefits, and other factors, buyers can save hundreds of dollars per month compared to owning a gasoline powered car.
  - robomartin 14y ago
    Oh please, it was a dumb example to highlight the reality of the deal. I am buying a Tesla. I am tired of gasoline and I like the car. I am simply not delusional as to the real cost of the thing. Actually, I am buying two. The next one has to be an SUV though. I just wish they didn't resort to cheap-car-salesman techniques. I had a friend get excited about buying a Tesla because he thought it would cost him $600 a month. He was not happy to learn that the real cost was closer to $1,000. Now he thinks Tesla is a huge scam. I doubt he will ever consider their cars again. Based on that data point alone I have a feeling this creative financing campaign could be damaging their image to some degree.