Earlier this year, Tesla launched a new in-house Personal Contract Purchase (PCP) program in the UK. The significantly more flexible program reduced the monthly entry cost of the Model S to £404 with a 30% down payment. At the time, Tesla said that after fuel and road tax savings, the monthly cost would be only £296 in the UK.
The new program seems to have contributed to Tesla’s recent success in the country, which became the automaker’s top market for the Model S in Europe in the first quarter 2016 after having delivered around 750 cars based on registration data. The country was normally trailing between the fourth and fifth positions in Europe for Tesla – behind Norway, the Netherlands, Germany and Switzerland.
With the recent reintroduction of the Model S 60, Tesla is now lowering the entry even further, across all markets of course, but in the case of the UK, the automaker is now claiming that you can get the monthly cost down to £0.
There are a lot of different things coming into play for Tesla to advertise this £0/month cost. First of, the cash price of the base Model S 60, which is a Model S 75 kWh software-limited to 60 kWh as we discussed at the launch, is £53,400 (including ~£9,500 VAT).
After the £4,500 UK Plug-in Car Grant and if you configure the PCP with a 24-month term with a 10,000 annual mileage limit and a 30% cash down of £16,134, you can get the actual payment down to £318 per month. That’s what you would pay Tesla per month, but as far as actual cost goes, the automaker claims that after gas savings and the London Congestion Charge (if it applies), the monthly cost is virtually £0.
Of course, you can also just outright buy the vehicle for £53,400 and then your monthly cost will also be £0 – or base on the same logic, you will be savings £200+ per month on gas and road taxes.
You can play with Tesla’s financing and purchasing configurator to get an idea.