Tesla Motors has recently extended its resale value guarantee financing plan to Hong Kong, a program which will allow owners of certain Tesla models to sell back their cars at a guaranteed price.
Those who own the 70 kwh Model S sedan will be given the option of selling back their vehicle to Tesla within a timeframe of 36 to 37 months after purchase. Tesla will offer 75 percent of the base price, and a 65 percent buyback on any additional options.
In 2013 Tesla first began its resale value guarantee program, it started with just the United States, but was recently expanded to Europe, Japan, and Australia this past March.
According to the South China Morning Post, Tesla stated that the resale prices in Hong Kong are some of the highest proposed by the company.
“The new RVG program is demonstrating Tesla’s continuing commitment to our customers, and its offer of a guaranteed resale value will give Model S owners greater confidence in their purchase,” said Country Director for Tesla in Hong Kong, Isabel Fan.
Tesla’s thought process in this whole deal, according to Bloomberg, is that offering this resale value guarantee it will generate additional revenue due to having more control over its used cars and used car pricing.
China has also made strides in helping the electric car market grow domestically, the government of Hong Kong has even waived the initial registration tax for EVs until March 2017.
Tesla has recently gone through struggles in China in regards to prospective owners placing orders but then canceling. Overall it’s estimated that 1,600 Teslas have been imported to China but not licensed.
“China is the only place on earth where we have excess inventory. We are essentially selling cars that speculators ordered but we were unable to deliver,” said Elon Musk, Tesla’s CEO in March at the Boao Forum.