Thanks to a new Propulsion version with a single electric motor, the Tesla Model Y is less expensive in France than a Model 3. Let’s study the possibilities of financing, LOA and credit to obtain the Model Y for less than 400 euros per month.
A few days ago, Tesla created a surprise in France by unveiling a new version of its Model Y. In reality, it is not really a surprise since we knew that this version was coming, but it is more its starting price which surprised us, to the point of making it one of the electric cars with the best value for money of this return.
Indeed, the Model Y, which is hierarchically above the Tesla Model 3 in the range, is displayed at prices lower than the latter, in this case at a starting price of 49,990 eurosexcluding the ecological bonus of 2,000 euros.
Like many other manufacturers, Tesla offers financing in the purchase process. And since the majority of cars today are financed by LOA (rental with option to buy), conventional loans or even by LLD (long-term rental), many customers are interested in this type of service. enabling them to afford a top-of-the-range car without wiping out all their savings all at once.
As you may know, unlike other manufacturers (even if this is less and less the case), Tesla does not offer promotions and no negotiations possible. Therefore, to arrive at monthly payments below 400 euros per month, we played with the manufacturer’s financing simulator, and, as we will see, the conditions are not so extravagant to arrive at this type of financing, especially for a rather high-end product.
The Tesla Model Y offered under 400 euros per month
As stated above, this is the basic modelnamely a propulsion model whose autonomy is announced at 455km under the WLTP cycle. As usual at Tesla, the power and battery data are not officially communicated, but a quick search on the Internet can find them. Thus, the Tesla Model Y propulsion offered in our regions would make slightly less than 300 hp and would benefit from a battery with a capacity of around 60 kWh.
Since this is not a promotional offer, it is also not a specific model. Therefore, if you really want to stay under 400 euros per month and opt for some nice options, such as a color for example or even bigger rims, it is quite possible. On the other hand, the few options offered by the Model Y are expensive, like the improved Autopilot for 3,800 euros (which adds more than 60 euros per month on monthly payments spread over 60 months) or the capacity option fully autonomous driving at 7,500 euros which adds a hundred euros to the monthly payments.
On our side, for this file, we chose to start with a basic Model Y, that is to say with the standard white paint and 19-inch rims (the optional 20-inch rims at 2,100 euros lower the range by around 20 km). Its basic equipment is complete with Autopilot as standard, Premium interior with heated front and rear seats, heated steering wheel and Premium audio system. On the other hand, the maximum charging power is capped at 170 kW against 250 kW for the versions above. But since the battery is smaller, the 10 to 80% is similar, in about thirty minutes.
What are the conditions ?
As this is not an offer, we had to modulate with the simulation system on the Tesla site. And we manage, without too much difficulty and without too much concession, to pass below 400 euros per monthand without exploding the contribution moreover.
Long-term rental was not available for this model at the time of writing, so we opted for a rental with option to buy on 60 months and 100,000km, or 20,000 km per year. A mileage that is much closer to reality compared to offers at 10,000 km per year from other manufacturers. At Tesla too it is possible to go down to 10,000 km per year, which will reduce your monthly payments, but everything will depend above all on your use.
We started with a larger contribution compared to what we usually see, premium model obliges, with 12,000 euros, all reduced to 10,000 euros thanks to the ecological bonus of 2,000 euros. Here, the financing is not subject to the conversion premium which obliges you to scrap an old diesel or petrol model, and in addition to satisfying a reference tax threshold.
In the end, we arrived at monthly payments of 386.41 euros per monthover 60 months and with 20,000 km per year.
How much will the Tesla Model Y LOA cost you?
Over five years of long lease with an option to buy, your Tesla Model Y will cost you €33,184.60. Tesla displays its car from 49,990 euros on its site, ecological bonus of 2,000 euros not deducted. This gives us, once the deductions have been made, a model displayed at the list price at €47,990.
Starting from this rate, you will pay over the five years of rental 69.15% of the price of your car. The offer being an LOA and not an LLD, there is an option to buy back the vehicle that you choose to raise, or not. If you don’t raise it, you will therefore return the car to start again on a new model, or not. Also pay attention to the costs of restoration which can be expensive at the time of return. We advise you to do it before at a bodybuilder, it will cost you less than at your dealer in general.
If you wish to exercise the purchase option, Tesla specifies from the outset that the final price of the car at the end of the financing and the exercise of the purchase option will be €55,294. Thereby, the purchase option is 22,109.40 euros if you wish to become the permanent owner of the car. So, by doing a quick calculation, your Tesla Model Y propulsion with an LOA will have cost you €7,304 more compared to a cash purchase.
Should we favor the LOA or the classic credit?
Rare are the customers who buy their new car in cash. In the vast majority of cases, these cars are financed either by an LOA, or by an LLD or a conventional loan. And precisely, compared to a classic credit, what is the most interesting?
Let’s start with Tesla’s captive bank, that is to say its own financing organization (it’s usually a traditional bank that hides behind all this) which also makes it possible to offer credits in addition to an LOA. Always on the same basis of 60 months (Tesla can go up to 96 months on a loan) and with a contribution of 10,000 euros (12,000 euros, less the 2,000 euros bonus), we arrive at monthly payments of €674.05, excluding insurance. On the front, it’s more expensive than a LOA, but after five years, the car definitely belongs to you. And by doing a quick calculation, at the end of the financing, you will have paid €50,443. The credit will therefore have cost you €2,453i.e. practically 2.5 times less than the LOA.
Now let’s have a look at a traditional bank, and even if the rates have increased a lot in recent months, they remain interesting, especially if you buy an electric car. For example, at Crédit Agricole, thanks to the “Auto Vert” loan and its APR of 1.990%, there is surely a way to achieve more attractive monthly payments.
Thus, by financing 37,990 euros (with a contribution of 12,000 euros, reduced to 10,000 euros with the bonus of 2,000 euros), still over 60 months, we arrive at monthly payments of €665.41, without insurance. The total amount due is €39,924.60 (the contribution is not included directly in the financing) the credit will therefore have cost you €1,934.60which is about 500 euros less compared to Tesla’s captive bank and 3.5 times cheaper than the LOA.
Things to remember
To summarize our explanations more succinctly, we have summarized the three types of funding studied in a summary table.
|LOA||Tesla Credit||Bank credit|
|Mileage||20,000 km/year||No limits||No limits|
|Duration||60 months||60 months||60 months|
|Cost of financing||€7,304||€2,453||€1,934.60|
As you can see, from a purely financial point of view, conventional credit in a bank, in this case Crédit Agricole and its “Auto Vert” offer, is the best solution. Its fixed APR lower than the Tesla credit allows it to post monthly payments that are also lower. They will never reach those of the LOA, since the latter only finances 69.15% of the price of the car, the rest being to be paid at the end of the financing.
The LOA is generally not a good deal, especially if you return the car at the end of the financing. This “simply” makes it possible to display the car at more competitive rates. The other side of the coin, we have it several years later, when you have to return the car or exercise the purchase option. Purchase option that it is also possible to finance later with a conventional loan, but again it will cost more since it will still be necessary to add financing after financing.
A classic loan, despite its higher monthly payments, can be interesting, on the one hand because some captives offer to go beyond 60 months and further reduce the monthly payments, but also it allows you to own your car from beginning to end, and therefore to be able to resell it as you see fit. Returning an LOA during financing inevitably entails penalties. Especially since a Tesla Model Y should retain an excellent residual value on resale, opportunities being rare and demand ever greater with the energy transition that is beginning.
The LOA can be useful if you are not confident in the used price of your car and you already know that you will be selling it in a few years. Thus, with the LOA, you know in advance the total cost of ownership (TCO in English for total cost of ownership) of the car. On the other hand, in cash or on credit, you cannot know this price, since it will depend on the resale value of the vehicle.
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