Tesla Motors, Inc. (TSLA) is now offering a lease option to business owners for buying Model S. The automaker has started a subsidiary, Tesla Finance, for this purpose.
The company has tried to make the process of obtaining the lease as simple as possible. First of all, it has kept the lease agreement short and simple. Moreover, Tesla’s website calculates the monthly lease cost for the buyer while an order is being placed for a car.
The best part is that the lease agreement can be signed electronically, thus making it a very hassle-free process. Customers simply have to tap a button on the touch screen of their Tesla car, on delivery, to sign the agreement.
The news was appreciated by consumers, with many positive comments posted on Tesla’s website. Moreover, the stock, which had been falling recently, gained 3.83% on Tuesday after the news was made public.
The ease of obtaining the lease will likely make it a popular option among business owners as they can deduct the payment from their business taxes as well. In fact, Tesla has started the leasing option on the request of many small and medium-sized business owners.
Apart from the leasing option, Tesla also has banking partners who offer car loans to consumers. Moreover, the electric carmaker also offers a Resale Value Guarantee (RVG) to car owners who opt for financing with Tesla, which means that the company will provide guarantee for the highest residual value of any high volume premium sedan brand (Audi, BMW, Mercedes or Lexus) after three years of ownership. According to the company, the combination of car loan and RVG is similar to obtaining lease financing.
Tesla currently carries a Zacks Rank #1 (Strong Buy). Some other automobile stocks that are worth considering are Tata Motors Limited (TTM), Toyota Motor Corporation (TM) and Daimler AG (DDAIF). Tata Motors and Daimler sport a Zacks Rank #1, while Toyota holds a Zacks Rank #2 (Buy).
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