if my driving is under 12k miles a year, isnt it always better to take the lease due to the tax credits and then just upgrade after 3 years to get the latest car?
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any reason not to do a lease?
- Thread starter k.electron
- Start date
Daniel in SD
(supervised)
Depends on the lease. For a BMW, almost always. Tesla's lease rates are pretty high so you've got to do the math. Make sure you account for sales tax (that's the big advantage of leases in CA).
There is no tax credit for a lease. The owner of the car gets the federal tax credit to use as they like.
I got the tax credit applied to the price of the car on two separate Leaf leases. Reduces the payment significantly. Almost enough to justify driving a Leaf!
It's up to the automaker/leasing company as to how much they pass along of the tax credit they take to the lessee in the form of a cheaper lease, if any. And yes, Nissan used to pass along the entire tax credit and did so for years. I was in that boat w/my '13 Leaf. On the paperwork, it made it look like there was an over $7500 down payment made on my behalf.
I've heard that Nissan doesn't pass along as much any longer but haven't followed since I have no interest in leasing a Leaf at this time.
It's a terrible idea to lease Tesla's. People can run their individual scenarios but I've yet to see one person out math me in this area.
A rule of thumb is like this:
Over 9 years you can either:
1.) Own two Tesla's outright.
2.) Lease three Tesla's and no car at the end.
A rule of thumb is like this:
Over 9 years you can either:
1.) Own two Tesla's outright.
2.) Lease three Tesla's and no car at the end.
The only time it makes financial sense for Tesla leasing is if you are using it for “business”.
Here's an example lease for an '11 Leaf: Leaf Owners : Actual Lease Details - My Nissan Leaf Forum. It looks like the person put down $2K. The other $7.5K was from Nissan/NMAC passing along the tax credit so that it looks like another $7500 was put down.
Maybe I'll post that portion of my former '13 Leaf lease some time...
Ah.
Apparently Tesla will not pass over the tax credits. Also they want me to pay approx half the cost of the car in 3 years and I feel like with my under 10k miles driven a year the residual value is more than 50%. Even though we like to get new cars every few years I think we'll be able to get a better deal trading in rather than leasing.
Thanks for humoring me though, all you folks.
One of the hallmark traits of Teslas is that they are fun to drive. Not surprisingly, a lot of folks end up driving them quite a bit - often significantly more than they have past cars. You may find trying to stay within the lease mileage limits frustrating.
In theory, financially, they should be close to the same price - there's no fundamental reason a 3 year lease versus a purchase sold after three years should be cheaper, since the costs overall to all parties in the deal are exactly the same.
Do what makes you happy, and always read the fine print.
I put more than double the miles on my Tesla in the last year than I put on my ICE car the last year I owned it. So 12K miles per year wouldn’t cover me and my commute less than 2 miles.
Leases are great for businesses because:
1. It's highly unlikely that the miles per year will change.
2. There's no question about how much can be deducted.
3. Limits the age of the fleet.
Leases are not so good for consumers, primarily because an individual's situation can change which can lead to a big unexpected bill at the end of the lease. It also forces the consumer to purchase a new car at the lease end.
1. It's highly unlikely that the miles per year will change.
2. There's no question about how much can be deducted.
3. Limits the age of the fleet.
Leases are not so good for consumers, primarily because an individual's situation can change which can lead to a big unexpected bill at the end of the lease. It also forces the consumer to purchase a new car at the lease end.
I also considered leasing when I purchased my m3 recently. It seemed like a pretty decent idea, as we usually don’t keep cars more than a few years anyway. We were gonna do the 12k mi/yr, given that it’s not our only car.
In the end, after all the math I bought the car. Glad I did, as we’ve put nearly 3000 miles on it in the first month alone. I have to put my Raptor on a battery tender now.
In the end, after all the math I bought the car. Glad I did, as we’ve put nearly 3000 miles on it in the first month alone. I have to put my Raptor on a battery tender now.
Msjulie
Active Member
Leases can be good for cars that have an initial maintenance plan (3 years or similar) and are known to be much more problematic when they age with high costs; friend of mine leases various BMWs for that reason he says, pay a fixed amount for a basically trouble free experience and get out while the getting is good.
I'd rather buy a Tesla personally, duh
I'd rather buy a Tesla personally, duh
Here’s a scenario where I am “leasing” a Model 3.
I bought a Model 3 out the door at 39k all in.
Subtracted out 3750, 2500 and 1000.
The delta between 39K and what I can sell it for in 2-3 years divided by 24-36 was my monthly “lease” payment.
Will be far better than Tesla’s lease terms
I am 100 percent sure.
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