Tesla Motors has started offering a business leasing program for its small and medium-size business customers, providing another financing option for its Model S electric sedans.
The company said that customers in small and medium-size businesses have been asking for a leasing program, so they could deduct the payments from their business taxes. In response, the Palo Alto-based electric vehicle manufacturer set up a subsidiary to offer the business lease product, known as Tesla Finance.
Companies can go through the entire leasing process online and sign for the Model S upon delivery with a tap on the car’s touchscreen.
The leases vary in cost with options on the Model S. Leasing a base Model S for 36 months would cost $1,012 per month with roughly $6,000 up front. The company says the cost would be offset by $261 per month in gasoline savings and $343 in business tax deductions, for a net monthly cost of $408.
The base Model S starts at $69,900 before federal or state incentives, can travel 208 miles on a single charge and can go from zero to 60 miles per hour in 5.9 seconds. Other Teslas with longer battery range and more options start as high as $93,400, also before federal or state incentives.
The business leases, aimed at doctors, lawyers, accountants, real estate agents and other companies, are available through Tesla’s own finance company. According to the website, business leases will be available in California, Colorado, Connecticut, Florida, Illinois, Massachusetts, Maryland, New York, Texas and Washington.
Companies must have a federal tax identification number to qualify, and an individual must be the co-lessee, the company said in a statement.
A year ago, Tesla introduced a Resale Value Guarantee that allows customers to return the Model S for a set value, which adds up the “functional equivalent of a lease” when combined with a loan from one of the company’s partner banks.
