Can You Really Get Tesla's (TSLA) Model S for 'Around' $500 Per Month?
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According to a release from the company Tuesday night, Tesla (Nasdaq: TSLA) will be able to get a lease on its Model S down to $500 per month. For the 2013 "Car of the Year," that is a pretty smoking-hot deal. But, how do you get a $62,000+ auto down to just $500 per month?
Creative math, that's how.
The WSJ noted that a mid-range Model S comes in at $543 per month, slightly above the advertised going rate. However, the actual payment is something like $1,199 per month, or more than double what Tesla drew buyers in with. So, what gives?
Tesla notes that that economic cost of ownership is about $500 per month when factoring in gas savings and government discounts. There's more.
Own a business? Plan on using the Model S for that? There's a $227 per month discount.
Stop at gas stations often? Avoiding the gas station four times per month, with an average stop of 15 minutes, will save you $100 for the hour wasted (What? You don't make $100 per hour?).
Sans the above discounts, the Model S comes in at $870 per month. Say you don't live in one of six states with additional incentives for buying an electric vehicle that goes above and beyond the $7,500 federal rebate (California, Utah, Illinois, W. Virginia, Colorado, or Georgia)? Add another $70 per month, bringing the lease up to $940 per month.
Oh, that's also if your credit is just about perfect so you can take advantage of low interest rates and then Wells Fargo or U.S. Bank might accept your application for 10 percent down.
Tesla shares are lower in pre-market action Wednesday.
Creative math, that's how.
The WSJ noted that a mid-range Model S comes in at $543 per month, slightly above the advertised going rate. However, the actual payment is something like $1,199 per month, or more than double what Tesla drew buyers in with. So, what gives?
Tesla notes that that economic cost of ownership is about $500 per month when factoring in gas savings and government discounts. There's more.
Own a business? Plan on using the Model S for that? There's a $227 per month discount.
Stop at gas stations often? Avoiding the gas station four times per month, with an average stop of 15 minutes, will save you $100 for the hour wasted (What? You don't make $100 per hour?).
Sans the above discounts, the Model S comes in at $870 per month. Say you don't live in one of six states with additional incentives for buying an electric vehicle that goes above and beyond the $7,500 federal rebate (California, Utah, Illinois, W. Virginia, Colorado, or Georgia)? Add another $70 per month, bringing the lease up to $940 per month.
Oh, that's also if your credit is just about perfect so you can take advantage of low interest rates and then Wells Fargo or U.S. Bank might accept your application for 10 percent down.
Tesla shares are lower in pre-market action Wednesday.
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