Tesla Fleet Management & Financing

Understanding Tesla Fleet Management

Tesla fleet management refers to businesses that use and maintain a number of Tesla electric vehicles. This includes the integrated systems and tools designed for businesses to efficiently monitor a fleet of Tesla electric vehicles. Key features include tracking charging data, optimizing schedules, and keeping up-to-date with vehicle maintenance. 

Whether delivering goods in California or taxiing tourists around New York City, transitioning your business to electric is not merely about swapping traditional cars for electric ones. It’s about embracing a paradigm shift. Employing a fleet of Tesla showcases your business values efficiency and sustainability and is committed to leveraging advanced technology.

The Benefits of Managing a Tesla Fleet

Operating a Tesla fleet saves money. 

Lower maintenance costs associated with Tesla’s electric vehicles significantly reduce the total cost of ownership. Unlike traditional vehicles, electric vehicles have fewer moving parts, translating to less wear and tear and fewer repairs.

Zero-emission vehicles are better for the environment. 

By transitioning to a Tesla fleet, businesses can significantly reduce their carbon footprint, aligning with global sustainability goals and appealing to increasingly eco-conscious consumers.

Drivers can utilize advanced technology. 

From Autopilot capabilities to over-the-air software updates, Tesla vehicles are at the forefront of automotive innovation. These features enhance the driving experience and contribute to safety and efficiency.

Challenges Fleet Managers Face when Acquiring a Tesla Fleet

It’s not surprising that managing a fleet of Tesla vehicles comes with a host of benefits. But too often fleet managers are daunted by the seemingly insurmountable barriers to acquiring their own fleet. Let’s look at some of the key challenges fleet managers face.

How can we afford it?

Tesla vehicles are renowned for their advanced technology, superior performance, and high safety ratings. However, becoming a Tesla owner comes at a high price tag. The high upfront costs can be a significant barrier for businesses looking to transition to an all-electric fleet or add Tesla vehicles to their existing fleet.

Can we successfully transition to be an electric fleet?

This question is multi-faceted and incredibly common.  It encompasses all of the following questions:

• Will the investment in a Tesla fleet actually produce a strong ROI?
• How will our drivers respond to learning and using electric cars?
• How do Tesla Model Y vehicles differ from traditional cars like the Nissan Rogue or Ford trucks?
• How do you optimize charge time? And where are convenient charging stations?

Transitioning to an electric fleet is a huge undertaking. It requires learning new technology—and even a new way to drive. Fleet managers are wise businessmen and want to ensure that they will have a strong ROI.

Who can we trust to help us transition to a fleet of Tesla vehicles?

Thankfully, you don’t have to go the road alone. Spring Free EV partners with you to mitigate the challenges fleet managers fear the most. Not only do we provide you with incredible lease terms (more on that later) but we also work with you to budget and plan for the success of your fleet. Here’s what we mean:

• Spring Free EV provides fleet managers with a P&L template and tips for how to make your finances work.
• Spring Free EV also grants fleet managers access to a profit margin calculator that takes into account your state and each vehicle type. This allows fleet managers to confidently calculate future success and plan with ease.

But don’t just take our word for it. SacTelas is Sacramento’s go-to place for pristine Tesla rentals. Yet, in late 2022, SacTesla was facing maxed-out utilization. So, they turned to Spring Free EV.

Through our innovative subscription program, SacTesla was able to add Tesla vehicles affordably. So much so, that rental fees covered their entire monthly costs. Even more, these costs were capped, predictable, and didn’t come with mileage restrictions.

Spring Free EV provided SacTesla with a cost-effective way to expand its fleet, and by 2023, the company had nearly doubled its number of fleet vehicles.

Financing Your Tesla Fleet 

When adding Tesla vehicles to your fleet, understanding the various financing options is crucial. This can significantly impact the overall cost of owning and operating the fleet. 

Financing Options for Tesla Fleets

Direct Purchase

One option is for businesses to buy Tesla vehicles outright. While this requires a significant initial investment, it also means you’ll have complete ownership of the vehicle and won’t have to worry about mileage restrictions or wear and tear charges that can come with leasing.

Loan Financing

Another option is to finance the purchase of the Tesla vehicles through a loan. This involves making a down payment and monthly payments over a set period to pay off the rest

of the vehicle’s cost. The vehicles serve as collateral for the loan. Once the loan is paid off, you own the vehicles outright.

Leasing

Leasing is the most popular option for fleet financing. It involves making monthly payments to use the vehicles for a set period, typically two to four years. At the end of the lease period, you can choose to return the vehicles, purchase them, or lease new ones. 

EV fleet leasing often comes with mileage restrictions, but it keeps upfront costs low and ensures your fleet stays up-to-date with the latest models.

Understanding the Total Cost of Ownership

When considering these financing options, it’s essential to understand the total cost of ownership (TCO). The TCO includes not just the purchase price of the vehicle but also the ongoing costs of owning and operating it.      

Maintenance costs: While Tesla vehicles generally have lower maintenance costs than gas-powered vehicles, there will still be costs associated with maintaining the vehicles.  

Charging costs: While significantly less than gas, using electricity to charge the car still costs money.   

Insurance: Insurance costs can vary depending on the make and model of the vehicle, where it’s being driven, and other factors.

To Lease or To Buy 

The decision to lease or buy your Tesla fleet will depend on your business’s specific needs and circumstances. Leasing can be a good option if you want to keep upfront costs low, have access

to the latest models, and don’t want to worry about selling the vehicles. However, leasing contracts often have mileage restrictions and charges for excessive wear and tear, which may not be suitable for high-mileage fleets.

Buying the vehicles, either outright or through loan financing, gives you complete ownership and control over the vehicles. There are no mileage restrictions, and you can sell the vehicles whenever you choose. However, this requires a larger initial investment. Plus, you’ll be responsible for the vehicles’ maintenance and eventual resale.

How Spring Free EV Bolsters Businesses in Tesla Fleet Management & Financing

With innovative services tailored for high-mileage fleets, Spring Free EV can help businesses mitigate the challenges of managing and financing a Tesla fleet. Here’s how:

Maintenance and repair: Businesses can include maintenance packages in their leases, reducing the worry about potential repair costs.          

Training and education: Spring Free EV provides guidance and support to help businesses and their drivers understand how to best use and maintain their Tesla vehicles.    

Resale value uncertainty: By leasing the vehicles, businesses can avoid the risks associated with resale value. 

Financing Your Tesla Fleet with Spring Free EV

Spring Free EV provides businesses with innovative financial solutions that genuinely ease the burden of going green. How?

• Low to no down payment: Spring Free EV offers businesses incredibly low-down payment options. This allows businesses to acquire fleets without the hurdle of high upfront costs.
• No mileage limits: Spring Free EV bases their costs, not on a maximum, but on a minimum number of miles driven. Tesla vehicles start with a minimum of 1800 miles per month (that’s 21,600 miles per year).  
• Qualify based on your business health, not personal credit score: At Spring Free EV, we care less about where you’ve been and more about where your business is going. So to help us determine if we’re a good fit for one another, we perform a business health check based on your balance sheet, profit & loss statements, and cash flow.    
• EVInstaFleet: Often, banks only allow companies to lease a limited number of vehicles. Not so with Spring Free EV. We work with you to get the number of vehicles you need when you need it, and are ready to scale up or down as your business changes.

Beyond our innovative lease terms, Spring Free EV partners with businesses to manage their fleets well. We offer the following:

• Maintenance and repair packages: Businesses can include maintenance packages in their leases, reducing the worry about potential repair costs.          
• Training and education support: Spring Free EV provides guidance and support to help businesses and their drivers understand how to best use and maintain their Tesla vehicles.    
• Protection against resale value uncertainty: By leasing the vehicles, businesses can avoid the risks associated with resale value. 

Benefits of Using Spring Free EV’s Services

The good news doesn’t stop there. Spring Free EV is committed to making the transition to electric vehicles as smooth and seamless as possible. When you acquire a commercial fleet of Tesla vehicles, you also gain the following benefits:

Tax-deductible commercial lease payments: This incentive provides significant tax benefits for businesses and helps keep an overall low total cost of ownership.

Lower maintenance and fuel costs: Electric vehicles typically have lower maintenance and fuel costs than gas-powered vehicles, and Spring Free EV’s services can help businesses realize these savings.

Access to popular and trending vehicles: Spring Free EV has a selection of popular electric vehicles, including Tesla models, allowing businesses to quickly and easily add these vehicles to their fleet.