NEW YORK (CNNMoney)
Under the plan, Model S buyers will be able to purchase the car without making a large down payment and will be able to sell it back for a guaranteed value after three years.
Tesla (TSLA)'s plan is designed to mimic the benefits of a lease: low initial cash outlay plus no worries about the car's eventual resale value, while allowing buyers to actually own the car outright. In a traditional lease, the bank or financing company actually owns the car and the driver essentially rents it for the period of the lease.
US Bank and Wells Fargo have agreed to finance 90% of the purchase price of the Model S, according to Tesla. The buyer will make the 10% down payment. With Model S prices starting at $70,000 to $100,000, the down payment could be entirely -- or almost entirely -- covered by a $7,500 federal tax credit for plug-in cars.
"You can buy a Model S for no money down net of the tax credit and for $500 a month," Tesla chief executive Elon Musk said in a conference call.
The $500 a month figure was calculated to include savings derived from not using gasoline. Also, among other factors, the company included the time saved from not pumping gas: $100 a month.
Tesla also wanted to ease customer concerns about the eventual resale value of a plug-in car, Musk said.
After 36 months, the buyer will have the right, if he or she wishes, to trade in the Model S for same residual value percentage as a Mercedes-Benz S-class luxury car. If a Mercedes S-class is worth 43% of its original value after three years and a Model S owner wants to sell his car after three years, he would be guaranteed to get at least 43% of the Tesla's original purchase price.
Mercedes is partnered with Tesla Motors which provides the electric power components for Mercedes' B-class electric plug-in car.
Tesla recently announced it expects to soon announce its first quarterly profit based on better-than-expected sales of the automaker's Model S plug-in luxury sedan.
First Published: April 2, 2013: 5:55 PM ET
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