Don’t Have $109,000 for a Tesla Roadster? Bank of America to the Rescue
In what is sure to go down as a deft marketing move to garner some publicity (and virtually nothing more), Bank of America and Tesla have teamed up and announced that the megabank will start financing purchases of the Tesla Roadster to make them “much more affordable.”
I call BS.
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Any purchase of a fine automobile requires a certain, let’s say, indifference, to what is in one’s bank account at any given moment. It is extremely unlikely that prospective Roadster buyers are creating Excel spreadsheets to see if they can squeeze a Tesla Roadster into their budgets. And even with Bank of America’s entry into the equation, those spreadsheets aren’t looking any better.
Why’s that?
As the LA Times points out, the loans require up front costs of at least $20,000 plus any registration fees and taxes — which in LA would total roughly an additional $12,000. Then, once you cough up that mula, you’ll still be paying $1,700 per month for 5 years in principal and interest. Of course, there is a bright side, you do qualify for the $7,500 federal tax credit for alternative propulsion vehicles, but over 5 years you’ll be paying roughly $12,000 in interest.
I don’t know about you, but it seems to me that if the everyman in question had an extra $1,700 to spend a month on transportation costs and $30,000 to plunk down up front, he could also afford to wait and save up the money to actually purchase, outright, an equally cool Tesla Model S or Fisker Karma in 2 years’ time and save the $12,000 in interest.
Source: Press Release
Image Credit: Tesla Motors
Sure, they will finance the car over 10 years or some such BS. Bank of America wont (and cant afford to) subsidize any of the purchase cost.
On the other hand, Nick; if one’s housing costs are down: McMansion foreclosures …that Tesla looks awfully comforting for someone now camping out at the YMCA with no mortgage.
Wow, financing a Tesla looks like financing a mortgage… They are sweet cars but I will say I wouldn’t buy one unless you can afford it. Great post!
Clueless much? If all the people buying $100k cars paid cash you wouldn’t see many on the road. Financing cars is a way of life, even for the “wealthy”. Whether it’s a good idea is another issue, but it’s certainly common. What BofA is doing is basically taking a risk on a car with no resale value track record, hence the down payment. So if they have to repo, they’ll get their investment out of it.
MaxHedrm,
Not sure why the snarky as***le comment to lead off with, but I’ll play your game. Considering you appear to be in the market for a station wagon for your midlife crisis (as per your blog http://maxhedrm.montebellopark.com/blog/index.php/2009/06/28/midlife-crisis), it seems like you’re exactly the kind of person who BoA is claiming to target with their “much more affordable” schtick. Let me ask you: do BoA’s loan terms bring the Roadster down to your level?
TESLA S with 300 miles range RULES !
Wow! You know what would be even better and less costly?…..If they’d just fucking hire me instead.
I have to agree with you about going with the model s. That car looks fantastic.
Yes, of course, they can ask zero down, and 1% interest, then sell the loan to XXXman brothers, then wait for Treasury to pay for it.