Model S drivers have the flexibility to choose from several compelling purchase options to experience the thrill of driving Model S. Whether a customer desires the surety of ownership with a hire purchase from Alphera Financial Services, or the convenience of a contract hire, Model S drivers will enjoy the value of competitive monthly payments. In addition to low monthly payments, Model S drivers benefit from the unique cost advantages for driving Model S, such as free use of Tesla’s Supercharger network and road tax savings.
What financial solutions are available for Model S?
Competitive contract hire and hire purchase programmes are available for private and business customers. In addition, qualified individuals taking out a hire purchase with Alphera Financial Services receive the Tesla Resale Value Guarantee for the option to sell Model S back to Tesla during the 37th month of their loan for a predetermined price.
What is Contract Hire?
Contract hire, also known as leasing, allows private individuals (personal contract hire) and employees of businesses (business contract hire) to drive Model S for a set period of time and at a fixed monthly cost. At the end of the term, customers simply return their Model S. For additional convenience, maintenance and tyre replacement can optionally be included in the monthly payments. The benefits are lower upfront costs and peace of mind about servicing, depreciation and resale. Contract hire is provided by a preferred partner.
Can I customize my Contract Hire quote?
Our preferred partner offers terms of 24, 36 or 48 months and annual mileage allowances of 10,000, 15,000, 20,000 or 25,000 miles.
What is the process to hire Model S?
Simply let your Tesla Sales Advisor know you are interested in contract hire. Our preferred partner will contact you within one business day to complete a simple credit application. Once approved, our preferred partner will place a Model S order on your behalf.
When can I apply for a Contract Hire?
Whether you are an individual or a business interested in contract hire, you may apply with our preferred partner any time before delivery of your Tesla vehicle. We advise an early application to ensure appropriate finance is in place well before your delivery date.
Are there any limitations of a Contract Hire?
Drivers should remember that the cost to terminate the contract early can be expensive and extra charges will apply if the agreed mileage allowance is exceeded.
What is a Hire Purchase offering?
A hire purchase is a traditional car loan that offers the benefits of ownership. Customers can elect to finance up to 100 percent of the Model S purchase price with Alphera Financial Services for a term between 24 and 60 months at a fixed interest rate.
What is the process for getting approved for a Hire Purchase with Alphera?
Hire Purchase quotes are available in the Design Studio. You can simply contact your Tesla Sales Advisor or Delivery Specialist to complete a credit application.
TESLA RESALE VALUE GUARANTEE:
What is the Resale Value Guarantee?
Tesla’s Resale Value Guarantee allows owners to sell their Model S back to Tesla during the 37th month of their loan for a guaranteed resale amount that is specified at the time of delivery and is among the highest of any premium saloon brand made in volume.
This value is equal to 50% of the original base purchase price of the 60 kWh Model S plus 43% of the original purchase price for all of the options, including the upgrade to the 85 kWh battery pack (inclusive of VAT and exclusive of taxes, delivery fees, registration fees and accessories).
Is the bank backing the Resale Value Guarantee?
The Resale Value Guarantee is an agreement between Tesla and the vehicle’s original registered keeper or owner.
Does the Resale Value Guarantee apply for a business purchase?
Yes, you may qualify for the Tesla Resale Value Guarantee as a business customer.
Can I pay off my loan early?
If you choose to pay off your loan early, you may do so but the Resale Value Guarantee will not be applicable before 36 months. To exercise your Resale Value Guarantee, your loan must remain open for a minimum of 36 months from purchase date and remain in good standing for the duration of the loan.
What are the stipulations (fine print)?
To qualify for the Resale Value Guarantee, you must finance (on approved credit) a minimum of 60%, up to a maximum of 85%, of the Model S configuration price for a term between 48 and 72 months. To exercise the Resale Value Guarantee, the loan must remain open for a minimum of 36 months after the purchase date, and the account must remain in good standing. Please see the Resale Value Guarantee terms and conditions for further details on the programme.
From where is Tesla drawing the residual value comparison?
Tesla uses the average residual values as forecasted by CAP and EuroTax, independent third parties. While Tesla may periodically review the calculation of the Model S residual value for its programme, your￼￼ particular residual value will not change once it is given to you. Your guaranteed residual value will be reflected in your Tesla Resale Value Guarantee document.
What are the mileage limitations on the Resale Value Guarantee?
The Resale Value Guarantee allows up to 15,000 miles a year over 36 months, with a £0.17 excess charge (inclusive of VAT) for each mile over that amount.
How do you adjust for any excess wear and tear on my Model S?
Tesla will perform an appraisal and adjust the Resale Value Guarantee amount if we identify abnormal wear and tear or damage.
When can I return my Model S?
You may return your Model S to Tesla at any time during the 37th month of your loan for the amount stated on your Resale Value Guarantee.
Is the Resale Value Guarantee transferable if I sell my car?
The Resale Value Guarantee is an agreement between Tesla and the original registered keeper or owner only and may not be transferred to a second owner.
Who is eligible for the Resale Value Guarantee?
Any private or business customer who finances their Model S through a Tesla-agreed Hire Purchase is eligible for the Resale Value Guarantee meeting the minimum term and down payment requirements.
Where can I find my Tesla Resale Value Guarantee?
Your Resale Value Guarantee will be uploaded to your My Tesla account shortly after the delivery of your Model S.
Can the Resale Value Guarantee apply to existing Tesla-financed Model S customers?
The Resale Value Guarantee programme cannot be retroactively applied to owners who have already taken delivery of their Model S.
Is the £5,000 OLEV Government Grant available for financed vehicles?
Yes. Tesla will pass along the £5,000 savings onto all private, business and fleet orders, regardless of the financing method chosen and subject to availability.
What UK business incentives apply under financing?
Drivers of company cars in the UK are taxed under the Benefit in Kind (BIK) scheme. Electric vehicles are currently exempt from this tax, which applies in either the business hire purchase or business contract hire financing schemes. Additionally, businesses financing through a hire purchase are entitled to a 100% first year write-down allowance. To learn more about all UK incentives, visit our Incentives page.
What is the 100% First Year Allowance?
A 100% First Year Allowance is available in the UK for zero-emission vehicles purchased by a business for business use. Capital allowances are deducted from business profits to arrive at your taxable profits, or added to your losses to arrive at allowable losses. An adjustment, known as a balancing charge, may arise when you sell an asset, adding to your taxable profits or deducting from your losses, in the year the sale occurs. Before purchasing a Model S through your business or selling Model S to Tesla as part of the Resale Value Guarantee, it is always best to consult your company accountant to learn how the First Year Allowance incentive will apply to your business.
What is the Benefit in Kind (BIK) EV Advantage?
The BIK rate is set 0% for fully electric vehicles in the UK until the tax year 2015 when BIK will increase to 5%. For comparison, a diesel powered executive car costing £49,900 with an emission rating of 150g/km CO2 would be taxed at over 23% BIK, and for individuals in the higher tax bracket of 40% this means that owning Model S could mean a saving of over £4,500 in the first year alone. (Cost comparison based on a £49,900 60kWh Model S at 0% BIK in the first year).