Tesla announces financing scheme from the ground up for Model S buyers in the UK

American electric carmaker Tesla has announced a Model S financing programme for its private customers in the United Kingdom. The company statement says, “As with everything Tesla does, the programme has been created from the ground up rather than duplicating existing products in the industry.”

Financing through Tesla’s partner, Alphera Financial Services now comes with a guarantee that the Model S resale value will be among the highest of any premium saloon that is made in volume. Tesla says it promises to buy the Model S back from private customers during the 37^th month of the hire purchase term for 50 percent of the base purchase price of the 60 kWh Model S plus 43 percent of all options, including the upgrade to the 85 kWh battery pack.

The programme offers attractive rates with customers having the option, but not the obligation, to sell the car back to Tesla at a predetermined price during the 37^th month of the hire purchase.

Tesla customers financing through Alphera Financial Services pay a 15 percent down payment and an APR of 5.9 percent for the first 36 months and up to 72 months. This brings payments to around £820 (Rs 81,000) per month, which after savings means the effective monthly cost could be as low as £645 (Rs 64,000). After 36 months, the customer can choose to sell the car back to Tesla at the pre-determined price and pay off the HP contract, or keep driving their Model S and continue financing it with the same monthly payment.

Model S drivers can expect to save about £156 (Rs 15,000) a month on petrol and enjoy additional savings of exemptions from road tax (£19 a month/Rs 1,900) and London’s congestion charge (£210 a month/Rs 21,000 if commuting daily), and Benefit in Kind savings when using Model S as a company car (£331/Rs 33,000).

Tesla says with the new programme provided by Tesla and Alphera Financial Services, customers can further enjoy the lower cost of ownership of a Model S compared to the fuel costs of a petrol or diesel engine car. When choosing the 85 KWh version, fuel saving will add up even more as customers are able to use the Supercharger network in Europe for free. 

Photograph: Tesla Model S, the world's best-selling premium electric car.