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Advice on purchasing a CPO vs leasing a new Model S

Discussion in 'Model S' started by thisnameismine, Feb 21, 2017.

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  1. thisnameismine

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    I am in the market for a new vehicle. I'm interested in a Tesla. Money obviously is a factor. I like the Tesla because of range, I'm not a huge fan of the 60 because for that price the range isn't miles above what could be had with a far cheaper electric vehicle. I am partial to the new front face and seats.

    I'm kind of torn between buying a CPO or leasing a new vehicle. If i lease I would end up with a 60 (maybe a 75) vs an 85 CPO. I just feel like I'd put a lot down to lease and have nothing to show for it. vs at least having a used car at the end.

    I would love to know others thoughts on the options, or their personal experience. I'm a bit worried about the depreciation on the CPO. Part of me thinks it will not be so bad because I believe gas prices will rise, grandfathered supercharging will add value, and model 3 inventory will be hard to come by and range will be less or at least cost will be closer to a CPO S if you want higher range.
     
  2. Az_Rael

    Az_Rael Supporting Member

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    I don't have a crytsal ball on depreciation, so its a good question. Tesla's leases arent the best "deals" (especially considering the tax credit) but it does set your costs exactly for your ownership period.

    Historically a CPO would be at the less steep end of the depreciation curve, so it would be the better deal vs a lease, but there isnt good history on Tesla's so its hard to tell. If AP3 comes out in two years, an AP1 car might take another instant step down in depreciation. Tesla's super fast innovation rate kind of throws the old models out the window.


    Personally, I bought a CPO. I drive too many miles for the lease to be a good deal, and I wanted more options than a base s60. So far I have been happy with the extra range as I have needed it several times already. But that is my own driving situation - yours might be different. I love my pano roof, upgraded sound, and P model, none of which I would have been able to get new, so for me it was worth the trade off of not having the latest and greatest. I am expecting depreciation to be painful when I sell even with a CPO.
     
    • Like x 3
  3. Pipcecil

    Pipcecil Member

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    Ditto - I drive too much for a lease. The CPO's are attractive and you can get a cheaper 85 if you are willing to wait for the right deal or compromise on a few amenities. The big bonus is the 4 year bumper to bumper. That alone helps protect you from any potential problems.

    I, like Az_Rael did a CPO and was able to afford much more in amenities than I could have even with a lease on a new one. My opinion: if you want/need the newer tech options/amenities on the newer Teslas (like autopilot) then do the the lease. If non of that is important to you, do a CPO.
     
  4. RichardD

    RichardD Supporting Member

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    I chose the CPO route. Brent Seavey was fantastic to work with.
    I used ev-cpo.com/hunter/ to narrow my list down.
    I was originally going with a 60D new for price reasons and was able to get a 85D with all of my options. Check out my thread history to see my experience with Tesla, good luck with whatever route you go.
     
  5. iamjkfit

    iamjkfit New Member

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    Richard,
    How was the experience buying a CPO being in Texas? I am currently shopping CPOs and live in Houston.
     
  6. thisnameismine

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    Well i do drive a lot. That is another reason for the CPO camp. I have been actively looking since Dec. And prices have been steadily dropping. With a CPO I will put about twice more down, have a much lower monthly payment, but I will have a car at the end, vs having to spend the same amount and give one back.
     
  7. RichardD

    RichardD Supporting Member

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    @iamjkfit It was great. I worked with Brent out of Chicago, he confirmed that I found the best car for the money and that they had no other inventory that he was aware of that fit my needs. I put my $1000 deposit down, and chose to pick the car up where it was (Denver). Had my trade in appraised, went with their offer, dropped my trade in off at Tesla North Houston, they drove me to IAH. Flew to Denver. They sent an Uber to get me from my hotel, and I picked the car up and drove it back to Houston.

    Used Texan CU as they had the cheapest rate at the time. 2.99 for 84 months.

    Now I have to get it inspected, and register the car at the DMV where I will pay the 6.25 tax rate. I chose not to have the taxes rolled into my loan. I wish Texas would just allow Tesla to sell directly. I could have had the car shipped here, but it was 2k, and I wanted an excuse to get away with the wife for a weekend.

    Buying site unseen was a bit hectic. I got a few photos, but I went with my gut, it's Tesla they stand behind their product.

    Please let me know if I missed any part of the experience you were looking for.

    My deal went really fast in Tesla terms. I put the deposit down on Monday and took delivery 7 days later.
     
  8. iamjkfit

    iamjkfit New Member

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    This makes me feel so much better.. did you have to put any money down for your loan w Texan CU? I have been looking at them and Alliant. I definitely want to fly and pickup if it within reason to save on the shipping fee.
     
  9. RichardD

    RichardD Supporting Member

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    I let my positive equity in my trade go towards the Tesla. I did not have to put money down, but wanted a lower payment. It was a mad dash to get everything taken care of in 3 days. Texans CU had me go into an affiliate branch and deposit $10 to open an account but all in all I would do it again. Went to Carmax to get the appraisal. Set up the tesla account, got financing, booked air travel (frontier 1 way for 24.88 to Denver got lucky) Used points for Marriot stay, rented a car in Denver for $6.77 using priceline. Coordinated delivery time, and transportation to the airport. Explained to my wife, just how much I loved her :) It makes for a great story. Denver was a great drive home to Houston. Let me know if you need anything else.
     
  10. iamjkfit

    iamjkfit New Member

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    Thanks Richard.. Lots of Great info.
     
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  11. mbhforum

    mbhforum Member

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    I did the same. It was a '17 60D vs '15 85D that had Obeche Wood trim, Pano Roof, Power Liftgate and saved a few thousand as well. After having a loaner this week without a Pano Roof and has Piano Black trim, I am glad I got the CPO with better range and nicer options for even less money. I sacrificed AP2.0 and 10k miles and a few light scratches here and there.
     
  12. Kenriko

    Kenriko Member

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    DS I've dealt with at North Freeway Houston are Whitney and Dayan, both are nice. We're currently waiting on delivery of our P85. ~1month wait so far but our car had to come from New York which took ~2 weeks.
     
  13. Canuck

    Canuck Well-Known Member

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    I think it will be. I'd expect 50% or more in just a few years. You're buying more of an electronic item than a traditional vehicle. It won't be long until the Model 3 is out with AP2.0 driving it more places, and all the new goodies that are sure to come along, at much less of a cost.
     
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  14. steve841

    steve841 Active Member

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    In my case, I just dont believe in leasing for personal use.

    My opinion... obviously I wouldnt lease.

    CPO. Ask yourself, is the price of a used vehicle worth the cost vs buying a new with a $7500 tax credit?

    IMO, it's a no brainer. New tires, new brake pads, new interior, new everything trumps a CPO when factoring in the tax credit.
     
  15. thisnameismine

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    There is one thing I didn't mention, I can write this off as a business expense. That said, that isn't a justification for spending that kind of money. But just putting that into the equation.
     
  16. calisnow

    calisnow Active Member

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    @thisnameismine - to analyze this right you really are going to have to bite the bullet - make an assumption about depreciation, miles driven, pick a rate of return you demand on capital - then build a discounted cash flow analysis in a spreadsheet comparing lease vs buy. You shouldn't believe or not believe in anything - just do a discounted cash flow comparison. If you know zero about this subject find some videos. Should take an hour max to educate yourself and run the numbers. Search "net present value" "time value of money" "discounted cash flow" and find a tutorial.
     
  17. hifienthusiast

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    #17 hifienthusiast, Feb 21, 2017
    Last edited: Feb 21, 2017
    I purchased a CPO Model S P85, because I wanted the performance and the feel of a rear wheel drive sport sedan. With that said, my toss up was between the CPO P85 and a new "inventory" 75D (slower car but more tech). 2016 was also the last year for the $6000 Colorado state rebate on used EVs that hadn't been titled in Colorado before. The inventory 75D was about 10k more after $7500 federal, $6000 state, $4000 employer incentives and the Tesla inventory discount (which varies per vehicle and location). I took the leap on the CPO, because Tesla states that they deliver them as new to the buyer. Tesla has more than lived up to their delivery reputation for me and I couldn't be happier with my decision to purchase the P85. The car is absolutely amazing and the Denver service center continues to take care of me on the smallest of request. Without the deep incentives, I would highly encourage you to search out an inventory car to possibly split the difference between "made to order" and CPO. I used www.teslainventory.com for my research. Good Luck, you can't go wrong with any of them.
     
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  18. cadurney

    cadurney Member

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    iamjkfit, I also recommend Brent and the CPO path. He saved me from a bad private-party purchase with a car that had everything I wanted at a decent price (85D) and the extended warranty. I admit that I was a bit on the fence buying a car from Cincinnati sight unseen, but when he said that Little Rock was close enough for free shipping, he had me.
     
  19. iamjkfit

    iamjkfit New Member

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    What's the best way to get a hold of Brent?
     
  20. Az_Rael

    Az_Rael Supporting Member

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    I hear this alot, but when you are actually shopping the price differentials between a similarly optioned vehicle can be significant. You can get a base CPO model 60 used for $45.5k right now. Even with the tax credit, that is a significant savings and might be worth buying a used car for some folks. When I was optioning out a new one that was "equivalent" to my P85, I was up to $88.5k without any of the autopilot options turned on. Minus $7500 and I was still way above the $58k I actually paid.

    So for me, it was a "no brainer" to save $23K and not get a new interior, brakes and tires.
     
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