12:27 pm, January 20, 2023
Despite initial positivity for consumers in the EV market, Tesla’s price drop on Model 3 and Y has caused monthly repayments for those financing one to skyrocket by 57 per cent.
As of January 17, someone financing a Model Y with a £6,000 deposit on a 36 month deal and driving 10,000 miles a year would be paying £733 compared to £463 in the seven days previous, Electrifying.com revealed.
The data comes from Tesla’s own configurator and show that as of the morning of January 17, the final payment for a Model Y dropped from £29,286 to £18,466.
This 37 per cent drop is due to lenders making adjustments on what they believe the Model Y’s future value will be since the price drop and increased new car supply – and new car buyers will be covering the shortfall.
When the price drop was first announced consumers would pay £1 a month less on a Model Y than a Vauxhall Corsa EV and much less than other electric vehicle competitors.
Founder and CEO of Electrifying.com Ginny Buckley said: ‘Initially, last week’s price cuts were good news for buyers, however the move has clearly had a huge impact on Tesla’s future values.
‘This is evident by the sudden increase in costs for people buying their car on finance.
‘While the finance payment is now less than it was last year, the amount a buyer will save over the duration of a three-year agreement is much lower than the cut to the list price would suggest.
She explained: ‘The pricing rollercoaster is bound to have had a negative impact on the faith people have in Tesla as a brand.
‘Car makers will usually carefully manage prices and incentives to avoid crashing their used values and upsetting customers; Tesla’s approach makes it difficult for leasing companies to predict how residual values may look at the end of the finance term.’
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