-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
2 Year Lease $0 Down
- Thread starter kirbo20
- Start date
sgreenstonenj
Member
Sorry, $2500 deposit is still required but no additional money down is unless you want a lower monthly payment.
It only shows after you place the order. It's one of the financing options.
Attachments
No disrespect but that sounds like a terrible lease. $2500 down and $968 for 24 months. That is like $25,700 over 2 years. That is like 50% of the new price of an LR AWD M3. I hope they don't depreciate that fast and if they do this is not a good car to lease then.
Are they still restricting you from buying at lease end?
Are they still restricting you from buying at lease end?
To finance for 72 months would only be $70 per month cheaper and then I have to worry about selling it or trading it in in 2 years with hopes it holds its value. I would guess I'd lose more than the $1680 ($70x24 months) I'm paying on the lease. I agree that it's not a good deal but I have zero interest in keeping beyond 2 years so it is a better deal than financing. I could put more down and lower the payment but that doesn't make sense either. Ultimately this is to get me by until the Model Y or the Truck if a miracle happens in the next 2 years.
I'm not sure what creative math you used to come to that conclusion. That's $25k completely down the drain. You could just about buy a Leaf for that amount and then throw it away.
Common core 
.....but maybe I'm missing something. I'm really only concerned with out of pocket cost for the next 2 years.
Finance 57k which includes taxes and fees = $898 a month with $2500 down. 2 year cost is $ 21,552 for 24 months + $2500 = $24,052 out of pocket.
Lease for $968 a month = Cost Over 24 months $25,168.57
Looking at just out of pocket for the next two years the cost is pretty similar. What I don't know is if I buy it how much it will depreciate in 2 years and would I have equity or be upside down.
My first model 3 lost 13k in value in the first 6 months. If Tesla keeps dropping prices the amount could be even more in the future.
.....but maybe I'm missing something. I'm really only concerned with out of pocket cost for the next 2 years.Finance 57k which includes taxes and fees = $898 a month with $2500 down. 2 year cost is $ 21,552 for 24 months + $2500 = $24,052 out of pocket.
Lease for $968 a month = Cost Over 24 months $25,168.57
Looking at just out of pocket for the next two years the cost is pretty similar. What I don't know is if I buy it how much it will depreciate in 2 years and would I have equity or be upside down.
My first model 3 lost 13k in value in the first 6 months. If Tesla keeps dropping prices the amount could be even more in the future.
Attachments
Common core
Finance 57k which includes taxes and fees = $898 a month with $2500 down. 2 year cost is $ 21,552 for 24 months + $2500 = $24,052 out of pocket.
Lease for $968 a month = Cost Over 24 months $25,168.57
Looking at just out of pocket for the next two years the cost is pretty similar. What I don't know is if I buy it how much it will depreciate in 2 years and would I have equity or be upside down.
My first model 3 lost 13k in value in the first 6 months. If Tesla keeps dropping prices the amount could be even more in the future.
The issue for most folks is that you are paying $25k to drive a Model 3 for 2 years and then walk away with nothing. You don’t even have the option to buy the Model 3 at lease end since Tesla won’t allow it at this time. Maybe that will change.
A good lease on a vehicle usually requires 3 things.
1. High residual value. Since the Model 3 is fairly new it is tough to calculate a true 2/3 year residual value yet but based on your figures it indicates around 50% after just two years, which is horrible.
2. Low Money Factor (Lease Interest Rate). Not sure what it is but based on the payment it sounds high.
3. Decent purchase price or discount. This is the discount you normally negotiate off of msrp from traditional dealers. However, with Tesla you are pretty much limited to the online pricing.
So, negotiate a good discount on a car with a high residual value and a low money factor and you have the recipe for an attractive lease. You can also have the option to buy the car at lease end if you like or just turn it in and walk away.
Now I am not saying these cars compare but just an example. If we were to compare another car like a Lexus IS you could probably lease it for similar money down and $400-500 per month.
Bottom line from a financial perspective, wait and get the Model Y when it comes out or finance the Model 3 and trade it on the Model Y and at least get the sales tax savings.
That said, if you have the money to burn and all other priorities are in check do whatever makes you happy since life is short.
I understand the logic of a known loss vs buying and taking the “risk” of the unknown resale value. I sure hope it’s much better than the ~50% at 24month that’s indicated by the lease payment. If not, this will be the most expensive car per month I’ll have ever had by a huge margin. There isn’t enough gas savings to even soften the hit it at anywhere near today’s fuel costs.
And since Tesla will not allow you to buy it out, you don’t get the opportunity to keep the car or sell it yourself to take advantage of the market value, should it be better than the quoted residual.
And since Tesla will not allow you to buy it out, you don’t get the opportunity to keep the car or sell it yourself to take advantage of the market value, should it be better than the quoted residual.
If I’m backing the numbers out correctly, the residual is in the ballpark of $38,920 or 70%. Just doing back-of-napkin math so don’t hold me to that.
That’s a good sign for the rest of us.
The lease payments are high but it’s because the money factor is high, there’s plenty of fees and taxes wrapped into this thing, and it’s short term (24mos.)
A high residual makes me feel better about buying my Model 3 vs leasing. Resale value looks decent.
That’s a good sign for the rest of us.
The lease payments are high but it’s because the money factor is high, there’s plenty of fees and taxes wrapped into this thing, and it’s short term (24mos.)
A high residual makes me feel better about buying my Model 3 vs leasing. Resale value looks decent.
All the used examples on the lots seem to be about the same price as new ones. I guess once you eliminate the tax credits from the equation the pricing makes more sense.
Yes, I think you’re right. The tax credits weigh in to a degree, in that we’ve been discounting them, but I don’t think the average buyer does. Nor do I think they’re priced into the used market at all. This is good for us, bad for the used buyers. ;-)
I understand the concern about resale at two years, but it seems ill conceived to pay 50% of the car's value and have nothing to show for it. At least with a normal lease you have the purchase option. If you purchase it, and then get the Y, at least then you would have the tax benefit.
I know it's not the best deal but it's the most convenient for me at this time. I think either way I go I'll lose some money. With the lease I'll lose it monthly and if I buy it I'll probably lose it at trade in time. I will stomach the the loss as driving the Tesla will bring me enjoyment.
Similar threads
- Solved
