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Comment by vl | Hacker News Reader

>loan with a put option

But this article is really light on details:

1) Is put option available without the loan?

2) Is it available for longer than 36-month period?

If I decide to buy Tesla, it's unlikely I'm going to be replacing it in 3 years, more like 6-8 years. And I think that there is a good change that in 6 years resale value will be 0 - with more advanced battery tech available and with cheaper models around, and with old battery Model S may turn out to have no value in 6 years. So this kinda stops me from considering it.

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The offer is available between 36 and 39 months. http://www.teslamotors.com/sites/default/files/pdfs/tesla-re...

Well, this answers 1) as well: this doc requires that "The Vehicle is financed through Tesla’s direct vehicle financing program".

Are you reserving one? The negative to this offering is I am limited to 2 lenders so I might pay alittle more in interest versus a credit union. I think this program requires an additional $8/month as well. It gives me an exit plan if for some reason I want to get rid of the car relatively easily.

Hey I'd buy one that's made today in six years time. It'll need software updates and a new battery, but I think the rest would still be fine.

I'm thinking about reserving, but it seems a bit too expensive given all the unknowns. Want to test drive one though.

There is no reason why this structured financing entity would sell a put (taking on a liability) without an offsetting asset, the loan receivable. Nobody wants to be in the cash and carry downside vol business with an unhedgeable underlying.

Well, may be offer this options for a price or something.

They did bet that resale value will be higher than certain amount. Moreover, if it's higher, than what stops you from selling yourself and just returning the loan? I.e. it seems that they are not going to benefit from upside, but will suffer from downside - if resale value is lower, all people having this option will execute it.

On other hand if enough buyers will buy this option, this will effectively set the market price of the used car (as lease does for 3yo BMWs, for example).

Anyway, it seems they punish current cash buyers if this option is not available for them.

Elon could offer the same personal guarantee to cash buyers?

As you pointed out, given how fast electric vehicle technology is changing, it seems unlikely the typical Tesla S owner would want to own one for more than three years.

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