In January 2017, Tesla’s loan guarantee program was announced to allow third-party loaners to get a second-sale guarantee on the first-sale Model 3, the first electric car ever produced.
The loan program was set to expire in 2023, so this was the first time Tesla had made a second sale guarantee for a vehicle on its own.
Tesla said it would work with third-parties to offer a second loan for any new car sold to them by a third party, which would not need to be sold directly by Tesla.
Tesla had no plans to extend this guarantee to new Model 3s, which were to be mass-produced starting in 2021.
But on January 31, 2018, Tesla announced a second round of financing to support the Model 3 production, starting with a $5,000 loan for first-time buyers.
This would be a $1,000 lower than the $10,000 Tesla had been offering to first-timers, but the loan would be guaranteed by Tesla itself.
This second round also extended to all existing loaners, which included Tesla’s own factory loan program, and the company’s own dealer loan program.
This was the second time Tesla would offer the same guarantee for all third-generation cars, and it was the only new guarantee to come from a company that has been selling the Model S for more than a decade.
How the loan guarantee works The Tesla loan guarantee has two parts.
The first part is the guarantee itself, which means that the first owner of a new Model S will not need any help securing financing.
In addition to the guarantee, the second part is called the “guarantee clause”.
The guarantee clause guarantees the car to the new owner, regardless of the model, and Tesla would be required to make all necessary repairs to the car after it has been sold.
The second part of the guarantee is called a “transfer clause”.
The transfer clause provides a guarantee that the car will remain in the new owners hands for the period it remains in the loaner’s name.
The guarantee clause only applies to first owners, and not to any of the loaners.
What the guarantee does not cover In short, if the new Model is used by the third party for a second time, the Tesla guarantee will not apply to that use, because it is a second lease.
Even if a third-user does not use the car for a long time, and eventually becomes the owner of the vehicle, the guarantee clause would still apply.
For example, if a person bought a Tesla for a week in 2017, then returned the car in 2020, and was subsequently told by Tesla that the new Tesla could not be used for another two weeks, the guaranteed second-lease period would be extended to four weeks.
Furthermore, if someone sold a car to Tesla for an additional $10 000 and was told that the second-seller would not be able to use the vehicle for another four weeks, this guarantee would still be in effect.
Where it goes from here Tesla is not saying exactly how much the loan guarantees would be.
In addition to a $2,500 loan for a first-timer, the company said it is planning to issue up to $1 million in additional guarantees, with each guarantee potentially offering a different amount.
Tesla did not reveal the maximum amount it could guarantee, but it has already extended guarantees for a total of $12,000 for a new buyer.
That said, it is unclear how much Tesla could actually issue in loan guarantees.
Tesla said it could not guarantee more than $50,000 of total financing, which seems high to me.
It would seem that Tesla could have issued a second guarantee that would cover all new cars sold to third-country third-person loaners by 2020, but that would still leave $2.6 million left on the balance sheet.
That’s a lot of money to take out of the bank to cover that risk.
Tesla has previously said it will issue up at least $100,000 in loan commitments in 2019, and a further $500,000 is expected.
If you’re looking for a quick and easy way to make money off your first-hand purchase, this is a great way to start.
Posted by John O’Neill at 11:04