In response to critiques of the first version of its financing program introduced early in April (earlier post), Tesla Motors has raised the Model S resale value guarantee to be the highest of any premium sedan brand made in volume (excludes rare, low volume or limited edition vehicles). Buying a Model S through the Tesla financing offering now comes with a guarantee that the resale value will be higher than that of BMW, Audi, Mercedes, Lexus or Jaguar.
To protect people that have already purchased a Model S via this program, the guarantee will extend retroactively to anyone that made use of Tesla financing, created in partnership with US Bank and Wells Fargo, from when it was first announced. As with the prior resale guarantee, this higher number is also backed personally by Tesla CEO Elon Musk.
We appreciate the feedback from a number of journalists and customers that the first version of our financing product wasn’t quite right. They were right, so we are fixing it and, moreover, upping the ante by providing the best resale value guarantee in the automotive industry. The Model S is rated by Motor Trend, Automobile Magazine and many others as the best car of 2013, so it should naturally therefore have the highest resale value.—Tesla Co-founder & CEO Elon Musk
Tesla’s financing partners have agreed to provide longer term loans that reduce the monthly payment.