Tesla Motors has decided to provide its customers in Hong Kong with a program offering a guaranteed resale value on selected vehicles, says a report from SCMP. The resale financing scheme was first offered in the United States in 2013 and was recently launched in regions such as Australia, Japan and Europe.

Tesla Motors Inc Offers Guaranteed Resale Price In Hong Kong

Scheme on hire purchased Model S

Under the program, owners of Tesla’s Model S 70 D would be provided with the option of selling their cars back to the electric car maker for 70% of the base price and 60% of the value of any other additional features. The scheme would only be applicable during the 36-37 months after the initial purchase of the vehicle.

Further, a Model S 70D in the country costs around HK$619,000 or HK$9,977 per month through the installment plan offered by the electric car maker. Consumers that bought this model via the hire purchase program or a Tesla-approved lease can utilize the benefits of the resale scheme.

Along with Tesla, the Hong Kong government also seems to be encouraging people to buy electric vehicles as it has rejected the first registration tax on electric vehicles till March 2017.

Program to boost buyers’ confidence in Tesla

Regarding the plan, Isabel Fan, Tesla Motors’ director in Hong Kong, claimed that the program signifies the company’s dedication to its customers and provides “Model S owners greater confidence in their purchase.” Also the resale program is expected to aid Tesla’s efforts in boosting its revenue growth and strengthening its control over the secondhand price of its vehicles, as reported by Bloomberg.

Tesla has been struggling with poor demand for its cars in China. Elon Musk, the company’s CEO, blamed cancellations of orders after the vehicles were delivered in the country. Moreover, Musk suggested that China is the only country where the company has excessive inventory. As per speculations, Tesla has failed to find a buyer for about 1,600 cars which were imported.

Nevertheless, the automaker is optimistic on its growth in the world’s largest auto market and aims to sell at least 55,000 cars globally this year. The company started its business in the country in April last year and recently opened a new store and a service center in Shanghai.