The Tesla Model S as an Affordable Luxury with New Financing

Buying a Tesla may now be an affordable luxury this month as the company has unveiled a new financing plan with U.S. Bank, Wells Fargo, and existing tax credits.

The California-based electric car manufacturer is saying it has reduced the cost of ownership to $500 per month and will guarantee the residual value of a Tesla Model S for up to 36 months.

The price tag for a Model S starts at $62,400 for a 60-kilowatt battery and $ 72,400 for an 85-kilowatt battery.

Tesla says the 10 percent down payment is offset by federal and state tax credits ranging from $7,500 to $15,000.

The company states on its web site that "When considering the savings from using electricity instead of gasoline, depreciation benefits and other factors, the true net out of pocket cost to own a mid-range Model S drops to less than $500 per month."

After 36 months, a buyer has the right to sell the Model S back to Tesla "for the same residual value percentage as the iconic Mercedes S Class." Tesla is guaranteeing the resale value.

In California, Tesla has satellite offices in Los Angeles and Orange county. The company has delivered almost 10,000 electric vehicles to customers in 31 countries.

Click here to visit Tesla's website for complete financing information.

I understand that while most visitors are interested in luxury brands like Louis Vuitton and Hermes Birkin, I want to occasionally explore more of the people behind the companies offering affordable luxury items. 

Recently, I interviewed Frederick Manella for two articles that I link to at the bottom of this post.

Frederick’s professional background may have influenced his decision to offer pre-owned luxury handbags at his store in Beverly Hills and online through LXR & Co. 

He worked in marketing at BMW and then spent up to two years honing his business plan for LXR.

"Recognizing that many luxury product owners inevitably lose interest in a particular style or model," states the LXR site, "often wishing to replace it with the next piece of the moment, Frederick saw a unique opportunity for the redistribution of these products."

The company’s website recently launched and the concept includes high end contests and the chance to accumulate points via referrals.

“Each week we’ll be hosting a series of sales showcasing pieces from Hermès, Louis Vuitton, Chanel and a range of other designers.

You’ll have to get in quick though, because these are one-of-a-kind pieces and sales only last for a limited time.”

The site itself has a glamorous appeal and design.

During the remainder of November, online visitors can refer friends and increase the chances of winning up to $15,000 in luxury prizes.

LXR & Co. is also offering $ 25 to those who make referrals after an item ships.

Manella told me that he has up to 4,000 items in inventory at any one time and they’ll constantly rotate through the Beverly Hills store and online.
 

LXR & Co. pays cash for authentic pre-owned handbags and vintage jewelry.

CLICK HERE TO READ Entrepreneur sees demand for offering pre-owned Hermes Birkin handbags.

My reason for writing this blog on affordable luxury items

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The purpose of this blog is to dig deeper into the market for luxury items that are distinct and yet considered affordable.

While most bloggers typically write about a topic from a point of being expert, I’m writing from the standpoint of being interested in luxury items and wanting to learn more about them and the appeal.

Digging further into the topic, the key word for me is craftsmanship. My respect for the craftsmanship of a handbag came after speaking with Frederick Mannella of LXR Boutique in Beverly Hills who buys authentic handbags from private owners and then resells them. I interviewed him for articles I posted online here at Examiner.com.

Browsing the glass cases of Louis Vuitton, Chanel, and Hermes Birken bags near Rodeo Drive in Beverly Hills may seem like a vain pursuit but considering that the handbags are hand sewn I thought otherwise.

The experience reminds me of when I was selling roofing for the Home Depot and we offered a premium roofing service – meaning more expensive than competitors yet highly reliable.

I met a family who was living in a nice home in a low-income to moderate-income neighborhood of east Los Angeles County. The husband was a manager at a yacht manufacturer.

Individuals and companies who bought yachts sustained this man’s family. His wife didn’t work and they had several children. He was proud of the products the company produced.

With so much negative talk during the 2012 presidential campaign against those who are high income earners, it would be easy to write off luxury goods as vanity or write them in a celebrity-focused, gossipy sort of way.

That’s not my style at all. I’m more interested in focusing on the craftsmanship and even learning about those who make them as well as those who own them and sell them.

Perhaps the real reason I’m writing about the topic is because creating quality in anything we do should always be a standard to achieve.

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On October 17 in Beverly Hills, browse pre-owned luxury handbags and get a chance to win up to $10,000 in prizes at LXR boutique on Brighton Way in Beverly Hills.

LXR is a recently opened boutique and is throwing a party for the neighborhood.

The store carries a revolving inventory of pre-owned luxury handbags from Hermes Birkin, Louis Vuitton, and Chanel.

I recently saw the boutique and spoke with Frederick Mannella the owner who expects robust sales from the new store. The company will soon launch a new website. Frederick comes from Montreal and the store is an extension of the work he and his wife have done in the luxury goods market since 2006.

More than 500 items can revolve through the store in any given month. Certificates of authenticity are given for each purchase plus full customer support including 24 hour phone support and email accesss. 

Items are purchased from throughout Europe and North America.

LXR is located at 9638 Brighton Way.

Read a full interview with Frederick and LXR on the Examiner.com at LA Business News Examiner. 

Luxury Brands Beware – Chinese Consumers want Distinctive Alternatives

Here’s news on luxury goods being sold in China and how Chinese consumers are impacting Louis Vuitton and Gucci:

As more Louis Vuitton (MC) bags, Gucci wallets, and Omega watches flood cities like Beijing and Shanghai, consumers are eschewing readily available logoed products in favor of more distinctive alternatives. 

“As the luxury industry matures, the Chinese are becoming much more sophisticated about the products that they buy,” said Fflur Roberts, global head of luxury goods research at Euromonitor in London. “It’s not just about the bling aspect.” 

The shift to less conspicuous and often more expensive goods, which happened in Europe and the U.S. after the 2008 collapse of Lehman Brothers Holdings Inc., may dent growth at Vuitton and Gucci, which until recently sold more than half the luxury handbags in the world’s second-largest economy, HSBC estimates. 

Read theentire article on Business Week.