Tesla is No Longer Guaranteeing the Resale Value of Its Cars
As of July 1, Tesla ended its Resale Value Guarantee program.
The program had guaranteed the resale value of a Tesla Model S after three years when purchased through one of the company’s loan financing programs.
The value of the car was calculated as 50 percent of the base purchase price of an entry-level Model S plus 43 percent of the value of all options added to the vehicle. The program was upgraded in 2013 to guarantee that a Model S would have a higher resale value than competing Audi, BMW, Lexus, Jaguar and Mercedes-Benz models.
The plan was developed to assure early adopters that there would be a resale market for the Model S and was originally backed by Tesla CEO Elon Musk to give owners “complete peace of mind about the long term value of the product.”
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The electric car market has moved significantly since the introduction of the Model S and the Resale Value Guarantee program, and according to a Tesla spokesperson, the program was discontinued “so that we can keep interest rates as low as possible and offer a compelling Lease and Loan program to customers.” The American automaker will continue to support customers that are currently financed through the Resale Value Guarantee program.
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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