As promised yesterday by Tesla CEO Elon Musk, the auto maker has addressed criticism and announced changes to its Model S financing plan by extending loans to reduce monthly payments, as well as offer a best value guarantee that will match other premium sedans from companies like BMW, Mercedes, Lexus, and Jaguar.
New loans will be extended by 11, going from 63 months to 72 months, in order to give buyers the ability to get lower monthly payments. The company faced recent criticism that their financing plan was a bit vague, and some of the math didn’t quite add up. For instance, the company said that the out-of-pocket cost of a Model S would be in the $500 range per month, but monthly payments would actually be around $1,200.
Furthermore, Tesla is now also guaranteeing a resale value of 50% after three years, which is up from 43% previously. Beforehand, the company agreed to match the resale value of the Mercedes S Class, but they’re now including any and all premium non-limited edition sedans, which sounds like a pretty sweet deal from the looks of it.
Musk admits that their initial financing plan “wasn’t quite right,” and he’s giving credit to the critics who called out the company on the confusing financing plans. Musk says that these people “were right,” and the company is “upping the ante by providing the best resale value guarantee in the automotive industry.”