Tesla guarantees resale value of Model S

Tesla Motors says it worked with Wells Fargo and U.S. Bank to develop a purchasing plan for the Model S, which could bring net payments down to $500 a month.

2012 Tesla Model S
Tesla sets up a financing plan for the Model S with Wells Fargo and U.S. Bank. Wayne Cunningham/CNET

Last week, Tesla CEO Elon Musk tweeted of an upcoming big announcement. Despite product-oriented speculation, the details that came out today lay out a new financing plan for the Model S .

The plan could bring net payments down to $500 a month according to Tesla, after taking into account the savings from purchasing electricity over gasoline, government incentives, and resale value.

Tesla added a True Cost of Ownership calculator to its site, which lets prospective buyers see how the numbers add up.

Tesla's announcement says it developed the plan with Wells Fargo and U.S. Bank, each of which will offer loans for a 10 percent initial down payment on a Model S. That loan could be paid off with federal and state incentives to purchase electric vehicles, according to the Tesla press release.

As an addition to the plan, Tesla will guarantee a resale value of the Model S after 36 months as a percentage of the original purchase price. That percentage will be based on the resale value of the Mercedes-Benz S-class.

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About the author

Wayne Cunningham reviews cars and writes about automotive technology for CNET. Prior to the Car Tech beat, he covered spyware, Web building technologies, and computer hardware. He began covering technology and the Web in 1994 as an editor of The Net magazine. He's also the author of "Vaporware," a novel that's available as a Nook e-book.

 

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