Petrocelli
Member
If you plan on getting another car in 3 years, you should lease. The hassle of selling a car is not worth it. And if you trade it in, you will be low-balled.
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From what I've been reading, if you lease a 3, you don't have the option to buy out at the end of the lease.i’d Have some equity in the car if I chose to buy it
I meant if I bought the car from the get-go instead of leased it.From what I've been reading, if you lease a 3, you don't have the option to buy out at the end of the lease.
I decided to lease because the math was better for me. I don't know how others are figuring this out, but in most scenarios I've calculated leasing is cheaper than buying unless you plan to keep the car for longer than 3 years. I personally seem to trade in cars every 3 years anyway, regardless of how I pay, so for me leasing is the best financial option.
The lack of a buyout at the end seems to be a big hangup for a lot of people but I'm not sure why. If you plan to keep the car for more than 3 years then just buy/finance. The only other reason people like this option is because sometimes you can sell the car to a 3rd party at the end for more than buyout and make a little profit. But I don't think that'll be the case for a Tesla.
In my case the cash price of the car I'm buying is $58,190 and if I subtract taxes I'm paying $27,144.08 over the 3 year term. That means the residual value is $31,045.92. I currently own a 3 year old BMW 340i with 19k miles which was about the same price. I'm getting quotes in the $28-$30k range for it right now. So the likelihood that your Model 3 is going to sell for more than $31k in 3 years is pretty slim.
The likelihood of a BMW ICE cars resale being the same as a Model 3 is what's pretty slim.
For example-
Tesla Model S Resale Values = Best In Class | CleanTechnica
That's resale on the Model S vs full size luxury cars from other brands.
BMW lost 40% of its value after 50k miles.
The Tesla only 28%
In fact the only brand with worse depreciation than the BMW was Jaguar.... and everyone was worse than the Tesla.
If we apply that 28% number to your $58,190 Tesla you'd have almost $42,000 in residual value... meaning leasing will have "cost" you an extra $10,000 or so... (on top of costing you any tax credits buying would have gotten you)
Obviously we can't know if Model 3 resale holds up as well as the S has, but it's pretty damn likely it'll hold up better than BMWs resale
Someone on YouTube took their Model 3 directly from the Tesla pickup to a CarMax and was quoted less than that. So there is no way a Tesla is holding 28% of it's value after 3 years.
That's correct.
It was actually only 28% depreciation after 5 years.
Those numbers were based on thousands of actual used car sales
Not "one dude who drove to carmax"
I provided a link for the info- maybe try reading it?
Apples and oranges though. The Model S is an expensive and relatively rare car.
No reason to think that wouldn't be the case comparing the cheaper BMW to the cheaper Tesla.
There are plenty of reasons to think this wont hold true for the cheaper cars. They are completely different cars with completely different buyers. Not to mention there will be many more used Model 3s available which will skew the supply/demand curve in the buyers favor.
Also if you look at KBB right now. A 2018 Model 3 Performance with all the options, which originally cost $78k is coming up with a range of $50-$54k. That's already 35% of it's value in just 1.5 years.
But demand is much higher too. Tesla continues to sell the cars faster than they can physically build the things.... (hence why they're trying to get GF3 online, and massively increase battery supply which is the biggest constraint)
Well... I'm not so sure about that.I think there will be more EV offerings in the next 3 years that are more challenging to Tesla.