In the past, when I explored leasing or buying, leasing did not make sense. It was cheaper to buy, but hardwired into that analysis was that I was going to keep the car for a long time, not trade it in after, say, 3 years. I normally drive cars into the ground. But in comparison to ICE cars, electric cars are going through a lot of changes. So maybe leasing, with the idea of only keeping the car 3 years, could make sense. Then again, Tesla has been at this for a while. Maybe future changes will not be all that dramatic. And the current S kicks ass and handles well (from what I have read), and people seem to get a lot of miles out of the S, so maybe we have reached a point where tech upgrades are not that big of a deal. Thoughts?
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Better to buy or lease S due to tech improvements?
- Thread starter diver110
- Start date
There's definitely a lot changing frequently with EVs. That's a valid concern. But the way pricing is going, people are selling used Teslas for more than they paid new. There's a huge markup for being able to deliver a car immediately, when the manufacturer is taking literally months to get the car to the customer.
My brother-in-law leased a Leaf for 3 years. When he turned it in to the dealer he bought a new one.
I would never lease a car, or make payments on a car. It's just pissing money away.
My brother-in-law leased a Leaf for 3 years. When he turned it in to the dealer he bought a new one.
I would never lease a car, or make payments on a car. It's just pissing money away.
General rule of thumb re: leasing vs. buying is: If you want a new car every few years with all the bells and whistles that come with it, then leasing is the way to go. If you're going to hold onto the car forever and drive it into the ground then you should buy. I bought my old MS in 2016 thinking I'd drive it into the ground and lo and behold, I just ordered a new MS. Primarily for more range as there are no real issues with the old one. But all the options on the new one are very enticing as well. And I think I can get a good price on my old one given the shortage of used vehicle inventory right now. So the plan is to buy a new MS and drive this one into the ground (I promise lol).
One more thing - there are some tax advantages to leasing if you can use the car for business purposes vs. if you owned it.
ATPMSD
Active Member
Chasing technology is a really bad reason to lease, there will always be something better. Your decision to lease should be solely based on if leasing is right for you, as noted by @GoNadsGo above, although he failed to also note the number of miles you put on the car is a significant factor In making that decision.
I have always leased because I like having a new car every few years, which is always under warranty. I drive 12,000 miles a year and the lease payments are less than a loan. Of course my payments never go away, but that is the trade-off I am willing to make.
I have always leased because I like having a new car every few years, which is always under warranty. I drive 12,000 miles a year and the lease payments are less than a loan. Of course my payments never go away, but that is the trade-off I am willing to make.
If you lease a Tesla, you do not get the option to buy it after the end of lease. It goes back to Tesla.
Currently Teslas are going up in value so much, that even a 3 year old used one will bring as much $ as a new one.
With OTA updates, Teslas can get many of the new features that are coming with the new ones. The cars tend to get better with age.
If you want a new one, with all the latest improvements, you can simply sell your current car and buy a new one as well as waiting for it to go off lease.
Currently Teslas are going up in value so much, that even a 3 year old used one will bring as much $ as a new one.
With OTA updates, Teslas can get many of the new features that are coming with the new ones. The cars tend to get better with age.
If you want a new one, with all the latest improvements, you can simply sell your current car and buy a new one as well as waiting for it to go off lease.
ATPMSD
Active Member
ATPMSD
Active Member
Well that sucks!
Eligibility
- All Tesla vehicles delivered on or after April 15, 2022 are not eligible for purchase.
- Third-party dealerships and third-party individuals are not eligible to purchase leased vehicles
Lease-End Options | Tesla Support
If you’re looking to return your vehicle and upgrade before the end of your lease, we offer several options to end your lease early.
For many EVs, it DOES make sense to lease vs purchase despite financial advantages for either based on personal situations as noted above. The main consideration is battery longevity. The classic example is the Nissan Leaf with a battery that degraded so significantly that after 3 years, it was a glorified golf cart. New entrants in the EV market (ionic, EV6, Mustang, etc.) have fully unproven longevity data for their EVs and being able to walk away after a few years via a lease may be a huge benefit. On the other hand, Tesla has demonstrated solid longevity (in particular with vehicles produced for past 4-5 years) and the above does not apply, in fact the opposite may hold true in that a 3 year used Tesla may have another 10+ years of usability and hence is being valued at near new.
For the post about ‘wanting a new car every year’ but ‘don’t lease due to tech’ - that is a paradoxical statement for a Tesla. Despite over the air updates, new hardware and constant improvements mean that someone that wants the latest and greatest from Tesla should have an exit plan every 18 months or so in order to acquire a new vehicle.
For the post about ‘wanting a new car every year’ but ‘don’t lease due to tech’ - that is a paradoxical statement for a Tesla. Despite over the air updates, new hardware and constant improvements mean that someone that wants the latest and greatest from Tesla should have an exit plan every 18 months or so in order to acquire a new vehicle.
Thanks for the feedback. When I crunched the numbers, buying was actually a bit cheaper than leasing on a monthly basis. As noted, I am normally someone who drives cars into the ground (I have a Jeep Grand Cherokee with 175,000 miles and a Porsche Cayenne Turbo with close to 90,000 miles). In light of the feedback, I am leaning more to buying. As noted, there will always be changes, but it seems like the Tesla S is mature enough to be viable for years to come.
emailforbrett
Member
I normally do a two or three year lease for every car because I drive about 10k a year. This Tesla is the first car I didn't lease. Teslas lease terribly. You have to run the numbers yourself, especially if taxes are a consideration in your case. For me, when I sell the car in four years for about 50% of what I paid for it new, the total cost is far cheaper than leasing.
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