Last week’s controversial price cuts have resulted in a rollercoaster ride for anyone hoping a Tesla might now be within reach.
Between the announcement on January 13th and today (17th), the monthly repayments on a Model Y were £466 for a customer putting down a £6,000 deposit and driving 10,000 miles a year for 36 months. This made it £1 cheaper per month on finance than the cheapest Vauxhall Corsa Electric and less than cars such as the MG 5 EV.
However, finance experts and lenders have made a rigorous readjustment of the expected future resale value of Teslas as a result of the sudden price cuts and increased supply of new cars. This has led to a huge increase in finance repayment costs. According to the company’s own online calculator, the Final Payment on a Model Y at the end of the agreement with the terms above has plunged from £29,286 yesterday to £18,466 today – a fall of 37%.
This has meant the customer’s repayments now have to cover this shortfall, and the monthly cost has risen 57% from £466 to £733.
James Baggott, editor in chief of Car Dealer Magazine, said: "We know that Cap HPI had an urgent meeting set with Tesla on Monday to discuss the reduced new prices and their forecasts for future values, so these PCP changes are likely to be a direct result of that.
"Cap HPI told us that they were “urgently reviewing” the Tesla Model Y prices and that an official update will be released later this month, but the fact Tesla has moved to change its finance prices so quickly clearly shows there has been a huge impact on future values as a result of these new price cuts."