A little bird told me Model 3 is close to lease

[privater]

Believe it or not, ppl gonna see leased Model 3 with half the purchase price within weeks, Since it’s leased from Tesla finance, Tesla gets full tax credits before end of this year and a generous lease offer for their customers.

This will convert a lot of orders and help push deliveries for the next quarter.

 

[ebmcs03]

Half the purchase price!?

Meaning you’ll end up paying for half the car after 3 years?
Sounds like a terrible lease deal.

 

[Glamisduner]

Half the purchase price!?

Meaning you’ll end up paying for half the car after 3 years?
Sounds like a terrible lease deal.

is it thought? my car is 2 weeks old and probably only worth 3/4 of what I paid?

 

[jsrawa]

Believe it or not, ppl gonna see leased Model 3 with half the purchase price within weeks, Since it’s leased from Tesla finance, Tesla gets full tax credits before end of this year and a generous lease offer for their customers.

This will convert a lot of orders and help push deliveries for the next quarter.

Meh, I can see the appeal of a lease but it would have to be a smokin deal to get me to sign. Half purchase price isn't really that great.

 

[David_Cary]

1/2 the payment is almost possible. $45k car. $22k depreciation over 3 years. Deduct $7500 from $22k and you get a 33% savings not 50%. Unfortunately Tesla leases have never worked that way. If they could make 200k and deliver this quarter, then this demand lever might be needed. But for now, Tesla doesn't need to do it.
But the lease lever might be started in the new year. I think 75% of BMW's are leased so that is where the money is.

 

[boaterva]

What was the incentive again? They are still selling all they can make and people who aren’t buying are waiting for the SR. It’s just bad timing that the credit will be $3750 in 2019. As Elon said, they are working on making a profit on the SR where right now they wouldn’t with the pack assembly logistics as they are.

So why do leases at all?

 

[Jedi2155]

1/2 the payment is almost possible. $45k car. $22k depreciation over 3 years. Deduct $7500 from $22k and you get a 33% savings not 50%. Unfortunately Tesla leases have never worked that way. If they could make 200k and deliver this quarter, then this demand lever might be needed. But for now, Tesla doesn't need to do it.
But the lease lever might be started in the new year. I think 75% of BMW's are leased so that is where the money is.

Lets do a little math:
MSRP: $46000 LEMUR
Residual: 55% (before tax credit, assumptions)
Residual with Tax Credit: 71.3% (assuming its added to residual vs. subtracting from sale price)
Money Factor: 0.0014 (3.5% Interest rate)
Tax Rate: 8.25%
Money Down: $0
Term: 36 Months
Lease Payment: $520.60 or $18741.71 after 3 years.

Lease Cost if you subtract $2500 CA State Rebate: $451.15

 

[bonaire]

Half the purchase price!?

Meaning you’ll end up paying for half the car after 3 years?
Sounds like a terrible lease deal.

Turns out that's how America rolls. Leasing for three years, finding something else, lease again. Always in warranty.
Leases are what you do to turn up sales when they slow.
Doctors use car leases to get some serious deductions to their income for tax purposes. Same for drivers doing taxes correctly as Uber and Lyft drivers. A leased Tesla with free supercharging is a pretty good setup for an Uber driver to cut costs. Unless the superchargers are crowded.

 

[bonaire]

What was the incentive again? They are still selling all they can make and people who aren’t buying are waiting for the SR. It’s just bad timing that the credit will be $3750 in 2019. As Elon said, they are working on making a profit on the SR where right now they wouldn’t with the pack assembly logistics as they are.

So why do leases at all?

If what happens is that the SR is dominant next year and few buy the P or LRDWD then the company will face enormous financial pressure. Self leasing "could help" by capturing the tax credit and giving the lessee only a portion of it, like banks do now with the leasing of the non-Tesla EVs.

 

[boaterva]

If what happens is that the SR is dominant next year and few buy the P or LRDWD then the company will face enormous financial pressure. Self leasing "could help" by capturing the tax credit and giving the lessee only a portion of it, like banks do now with the leasing of the non-Tesla EVs.

Next year when we have the flood of SR models, sure. This thread is about ‘now’.

I assume LRDWD is LRAWD? I spent half my time fixing autocorrect too.

 

[bonaire]

Sure, AWD. Make it simpler - wheels drive as a number. LR2 MR2, LR4 LR4P and so on.

 

[timk225]

How does it benefit Tesla to offer 3 leases? And aside from specific cases like the doctors and tax deductions mentioned, how is leasing better for the average Tesla owner?

 

[TT97]

How does it benefit Tesla to offer 3 leases? And aside from specific cases like the doctors and tax deductions mentioned, how is leasing better for the average Tesla owner?

For states that don't offer sales tax offsets on trade-ins, leasing will save you a few thousand dollars there alone. Most states don't charge surplus sales tax on leases.

I always leased when I could. It's basically a three-year trial on you car - if you like the car, you can buy it, otherwise, get a new car and move on with no headaches. Also, BMW and MB are notorious for setting high residual values so you end up paying considerably less by leasing (67-70% of MSRP for 3 year leases). Of course, makes it hard to buy at the end of the 3 years as the buy price is considerably higher than market (but I have been successful negotiating the price down to buy the car as all you need to beat is the wholesale price of the used car).

 

[MikeyJS]

From what I see with the Model S lease deal, Tesla leases are no where as a good of a deal as BMW. The loan rate seems to be almost 2% higher with the lease than their loan rate.

If you look at the lease for a base S75 36/15k, you make a down payment of 2500 at order time, a 695 acquisition fee (pretty standard for any lease) and then add the 1152 monthly payment (excluding sales tax), you are paying $44,667 to have the car for 3 years. That equates to paying for 59% of the car.

 

[RBowen]

Leasing shifts the risk of obsolescence to Tesla (away from the buyer). EV technology is still improving rapidly. We know that, at a minimum, autopilot hardware is going to improve in the short run. Over three years, the cumulative improvement can be large.

 

[ngogas]

Did the birdie also tell you the lottery ticket number. If so share please. Lol

 

[azaz]

hmm, this might be worth it for me considering I'd be missing out on the tax credit on a purchase.

 

[UnknownSoldier]

1/2 the payment is almost possible. $45k car. $22k depreciation over 3 years. Deduct $7500 from $22k and you get a 33% savings not 50%. Unfortunately Tesla leases have never worked that way. If they could make 200k and deliver this quarter, then this demand lever might be needed. But for now, Tesla doesn't need to do it.
But the lease lever might be started in the new year. I think 75% of BMW's are leased so that is where the money is.

75% of BMW are leased because that's how they prop up sales volume.
But having this many cars on lease when the next recession hits may actually kill BMW. So it's not a good business model to emulate.

 

[kengchang]

Tesla doesn't inflate the residual like other makers, doubt it's going to be that great.

 

[azaz]

Tesla doesn't inflate the residual like other makers, doubt it's going to be that great.

good I'd probably be going lease and then purchase so I can get the tax credit benefit (I know Tesla pockets some of it, does anyone know how much?)