Buying A Tesla? Read This First.

Advice On How To Get The Most From Buying An Electric Car

Getting The Best Deal On A Tesla

If you’re considering buying an electric car then Tesla is probably pretty high on your list.

But because Tesla operates unlike any other car company you’re going to need some guidance on how the ordering process works, and how to get the best deal.

Do Tesla Discount?

If you’re used to buying your cars from a traditional car dealer, then be ready for a shock with Tesla.

With all orders taking place online you’d be wasting your time popping down to the dealer to place an order and thinking you’ll negotiate yourself a deal with a salesperson because Tesla doesn’t have any.

They do of course have staff, but they are there to answer your questions, hand over your car once purchased and deal with all the administration.

And whilst you can still get a test drive, and go down and view what cars they have onsite, even see samples of interior trim and colors for the Model S and X, you’ll still be ordering your car online.

Think Apple store, and you’ve got it about right, the two companies operate very similar buyer experiences.

So can you make any savings?

Whilst you cant negotiate with Tesla, there are still a few ways of getting better than list price deal.

Tesla has what they call inventory cars. In other words, available stock.

With limited optional extras, it’s easy for Tesla to build a range of models and colours and ship them to the UK.

Each shipment will contain a mixture of custom orders and a selection of models and colours for the inventory.

As new orders come in on the website, they allocate orders in order and match you to available stock which is either in the country or still on the ship.

Towards the end of each quarters target, Tesla may discount their leftover inventory, so if your custom order is still a few weeks away, they may offer you an incentive to take an alternative physical car.

But you’ll probably have to keep an eye on the stock and make this suggestion yourself.

So if you’ve ordered white and they have a metallic red one unsold in the inventory on the last day of the month, you might be offered it at no extra cost.

They may also have demonstrator vehicles available at a discount, so its always worth asking what they may have available.

But be prepared to move fast, because you’ll have to take delivery of these cars before the month-end to get that deal.

Free Supercharging

For the first few years of the Model S and Model X programs, unlimited free Supercharging has been one of the top perks that Tesla was offering to its customers.

Tesla CEO Elon Musk said that the perk wasn’t sustainable and they would have to stop offering it, and he even admitted that they should have ended the incentive earlier:

“Sorry, it’s not really sustainable at volume production and doesn’t incentivize optimal behavior. We probably should have ended this earlier.”

For a while, ‘Free Unlimited Supercharging’ was also linked to Tesla’s owner referral program, but the automaker has since restructured the program.

Now the only way to get a limited free supercharging is by ordering via a referral from an existing Tesla Owner like ours below, feel free to use and share it.

Your Part Exchange

Tesla will take a part exchange; they use BCA (British car auctions) for valuation guidance.

If you accept that valuation, then as long as its within seven days, they’ll then guarantee the value they give for 60 days and allow an additional 1000 miles of usage per month, until the day of your collection, as long as its within that 60 day cut off.

They’re pretty competitive for most cars, but they aren’t always the best at evaluating the higher specification cars you may own. 

Also unlike other car dealers, they are not going to care if you part exchange or not. In fact we think they would prefer you didn’t, as these cars wont be resold and they take up valuable space on site until the auction can collect them.

So that gives you the opportunity to see if someone else ( like us) can pay more for your car even after you’ve excepted the PX deal with Tesla

In fact if you’re thinking of buying a Tesla and want a PX valuation from us to compare then just click here. which opens up our valuation pane in a new window.

Financial Benefits For Electric Vehicles

All Tesla cars have zero emissions and may be eligible for financial incentives that encourage clean energy use in the UK.

Benefits for All Tesla Drivers:

• £3000 plug-in grant
• Exempt from London Congestion Charge
• Access to clean air zones, including the London Ultra Low Emission Zone
• Up to £35,000 interest-free loan (Scotland only)
• Vehicle Excise Duty

Benefits of Tesla for Business:

• 0% Benefit in Kind (BiK) starting April 6th 2020
• 100% First Year Allowance
• No car fuel benefit charge
• Reduced National Insurance contributions
• Eligible for salary sacrifice schemes

Plug-In Grant

The plug-in grant is a purchase subsidy of up to £3,000 which is deducted from the purchase price of eligible new Tesla vehicles. Vehicles with a list price under £50,000 before application of optional extras are eligible.

London Congestion Charge

The London Congestion Charge is a daily charge for driving a vehicle within the charging zone in central London.

As of 22nd June, the charge is applied between 07:00 and 22:00, seven days per week. 

The daily charge has also risen to £15 per day for an indefinite period. Currently, only vehicles that meet Euro 6 standards (petrol and diesel), that emit no more than 75g/km of CO2 and have a minimum 20 miles zero-emission capable range will qualify for the 100% cleaner vehicle discount.

 From 25th October 2021, the cleaner vehicle-discount will change so that only battery electric vehicles are eligible.

More information: TFL Discounts and Exemptions

Ultra Low Emission Zones

Tesla vehicles are able to access the London Ultra Low Emission Zone, without paying the noncompliance fee of £12.50. The current Central London ULEZ is due to expand significantly from Central London to cover a much larger zone in October 2021. The cost of paying the ULEZ over 3 years could be up to £13,650, when driving into the zone on a daily basis.

More information: Ultra Low Emission Zones

Electric Vehicle Loan in Scotland

In Scotland, Transport Scotland funds an interest-free Electric Vehicle Loan of up to £35,000 for purchases of a new plug-in electric vehicle for personal use and up to £120,000 for purchases of new plug-in electric vehicles for business use.

More information: Electric Vehicle Loan & Low Carbon Transport Business Loan

Company Car Tax (Benefit in Kind)

From 6th April 2020, both new and existing Tesla cars will be eligible for a 0 percent BiK rate for the 2020/21 tax year. The BiK rate will rise to 1 percent in 2021/22 and to 2 percent in 2022/23, being held at 2% for 2024/24 & 2024/25. The average petrol or diesel vehicle has a BiK rate of 20 to 37 percent.

More information: Benefit in KindCompany Car Tax RulesReview of WLTP and Vehicle TaxesBudget 2020

100% First Year Allowance (FYA)

First Year Allowance is claimable for up to 100% of the cost of qualifying low emission and electric cars. By choosing a Tesla car, your business can claim a 100% year one deduction for the cost of the vehicle.

The First Year Allowance is applicable to new vehicles and cars considered new despite previously being used, such as vehicles registered as a sales or service demonstrator by the manufacturer.

In the March 2020 UK Budget, the Government announced that 100% FYA for businesses purchasing low emission cars will be extended until 31 March 2025.

More information: HMRC Capital Allowance Manual

Car Fuel Benefit Charge

As electricity is not classed as a road fuel, Tesla cars have no fuel benefit charge. That means employees are exempt from paying Benefit in Kind on electricity provided by their employer to charge an electric company car.

More information: Tax benefits for ultra low emission vehicles

Advisory Fuel Rates

As electricity is not classed as a road fuel, the car fuel benefit charge does not apply to electric charging. If an employee uses a company car, no Benefit in Kind occurs when charging their vehicle at the workplace.

The advisory fuel rate for fully electric vehicles has been confirmed by HMRC as 4 pence per mile.

More information: AFR/AMAPs/MAR and Fuel Benefit

Class 1A National Insurance Contributions

Class 1A NICs based on the vehicle’s P11D value and relevant BiK rate are applicable as determined by the official carbon emissions and fuel type.

More information: An employer’s guide to Class 1A National Insurance contributions

Salary Sacrifice

Salary Sacrifice enables employees to sacrifice some of their gross salary in order to receive the benefit of driving a fully electric company car. As the sacrifice is executed before tax and National Insurance contributions are applied, employees effectively save costs in the acquisition of their new car in a similar way that other savings such as childcare, gym membership or cycle-to-work schemes operate.

From a company’s perspective, this scheme provides an opportunity for organisations to offer employees a new car at a lower cost than they could achieve in the retail market in a tax efficient way. The company may also benefit from reduced National Insurance contribution payments from the scheme.

Salary Sacrifice is either offered by the employer or the leasing provider.

More information: Salary Sacrifice

Vehicle Excise Duty

With zero emissions, all Tesla cars are exempt from Vehicle Excise Duty. This includes an exemption from the luxury car surcharge from 1 April 2020 until 31 March 2025.

More information: Vehicle tax ratesBudget 2020

Want A No Obligation Part Exchange Value?

No Obligation Personalized Quote Online. The maximum age of 2013, maximum mileage 60,000 miles. Classics have no limit.

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