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Buy, lease or finance? Production quality opinions

Discussion in 'Model X: Ordering, Production, Delivery' started by Cloc, Apr 23, 2016.

  1. Cloc

    Cloc Member

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    I was fully prepared to pay cash for the X. I'm pensive about resale on the early release builds. I considered the tesla finance program for the buy back program, but thought I didn't have time since delivery, at the time, was imminent.

    Think the four year warranty will work out the kinks by the end or is the smart money to have the buy back as insurance?

    Or lease?

    I may be blinded by being a fanatic and also laced with concern over this "investment". Outside perspective and current sentiment is appreciated.

    I always intend to keep my cars longer than I actually do. Been averaging 4 years but never owned a car this expensive.
     
  2. loganintx

    loganintx Member

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    A. Cars are NOT investments
    B. You can get a 3 yr loan for .74%, makes no sense to pay cash.
    C. You can get a 6 year loan for < 2% and be at ~50% payoff of MSRP at 3 yr mark. Even if car residual sells for 45% you're only out a few grand.
    D. Lease rates from Tesla are 4%+ (terrible!)
     
    • Like x 1
  3. jason1466

    jason1466 Member

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    Cursory glance I see 1.49% for 3yr new auto. Can you please advise where to look for .74%?
     
  4. loganintx

    loganintx Member

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    I went with Alliant for 6 yr 1.99% and then deleted all my bookmarks for financing stuff. Let me find it for you.
     
    • Like x 1
  5. Cloc

    Cloc Member

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    A. I put investment into quotes. Never expected a ROI.
    B. I don't typically like to leverage my credit for non-income producing assets.
    C. I suppose the question is, do you believe the residuals will actually be at your theoretical 45% on these earlier builds with supposed issues looming. This was the heart of my question.
    D. I agree but maybe that % interest difference is less than the potential build quality effect on residual sale amount.
     
  6. DuplexDianne

    DuplexDianne Member

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    Where do you see 1.49%. Lowest I've seen locally is 1.59%
     
  7. CHG-ON

    CHG-ON Still in love after all these miles

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    These cars are depreciating faster than like cars and I think it will get worse. The buy back could be a good option. But you'll have to figure in the cost of Tesla financing against expected DPN. I read a good article comparing the MS to S Class. The S held more value after 3 years. Not too terribly much more. But it does add up. Unfortunately, I don't recall where I read it. Sorry about that.
     
  8. jason1466

    jason1466 Member

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    My local credit union, and PenFed seen on bankrate.com, but there are better deals if you look at the whole thread posted by loganintx just above here. In that thread they found the following that I recorded to research soon. Great TMC folks sharing such info.

    3y@.74% western.org

    [email protected]% Energy Federal Credit Union 1.93% - 0.75% EV discount, up to 60months, $69,999 for this rate

    [email protected]% Suncoast Federal Credit Union 1.75% for 72 months with an additional .25% discount for energy efficient vehicles.
     
  9. Ryan MF

    Ryan MF Member

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    I am in your situation and thinking to finance just a small portion of the cost through Tesla, maybe 20k to 30k. The rate differential with Tesla vs another bank won't be enough to really matter and will give you the resale guarantee. I'm not in any way expecting to trade it back, but it is an insurance from the unknown.

    One thing I have been wondering is there a lower limit on what you can finance to still get the buyback guarantee? Could put down 99% cash and finance $1000 for 48mo and still get the resale guarantee?
     
  10. Ryan MF

    Ryan MF Member

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    I would expect most of the depreciation from the 3 year Tesla's is due to the introduction of auto pilot and dual motor. A lot less demand now for those older cars. It will be interesting to see if the trend continues.
     
    • Like x 1
  11. loganintx

    loganintx Member

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    Going from No AutoPilto to AutoPilot is a lot more of a hit than going from AutoPilot Version 1 to Version 2. Also same for going from 60kWh to 75kWh versus 90kWh to 1xxkWh. At the distance you can get out of 90kWh, the extra battery juice is only going to be important to few people on few trips. Given that supercharging tapers down so much at top end of battery, trying to add another 15kWh at an SC is almost time prohibitive. The difference for me if the car had 250 mile range vs 300 mile range would probably mean one to two fewer SC charging stops in a year. Unless the range was able to get closer to 400 then it wouldn't really make much of a time savings difference to me.
     
  12. Cloc

    Cloc Member

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    To add: These these low rates would pale to a residual value of 40% vs 45%. Or even worse, 35% should these new breed of cars be already being valued more like tech items, are also thought of as particularly problematic renditions. At a 150k msrp, a few grand in interest savings might seem trivial.
     
  13. CHG-ON

    CHG-ON Still in love after all these miles

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    I think it will as they continue to add enhancements in mid stream. I wrote another post about it saying that Tesla has turned cars into tech products that are obsolete almost immediately. It'll be very interesting to see how this develops.
     
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  14. ModelXBoy

    ModelXBoy No More Door Captain of TMC! Oh Yeah Baby!

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    The essential question you need to ask yourself is:
    1. Do you need the cash now, can you afford to pay the car off without problems
    2. Do you like more cash in the bank for other investment or you prefer not to deal with payment, interest etc

    Cash is my preferred choice if you can afford it, but not the smartest choice. If you are good, you can use the money for other investment and have better ROI. If you might go to Vegas and loss some of them, I prefer just pay off the car, at least you are somewhat secured your investment on a depreciation car. Still better than wrong investment and later on return the car to the bank.
     
  15. MiddKid

    MiddKid Member

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    When I got the RVG on my S the max I could put down was 50%.
     
    • Informative x 1
  16. K-MTG

    K-MTG Sunshade Captain of TMC

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    [QUOTE="ModelXBoy, post: 1499232, member: 42072"

    Cash is my preferred choice if you can afford it, but not the smartest choice.[/QUOTE]

    I am deciding if I should pay cash or take out a loan for my sunshade.
     
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  17. Diavel

    Diavel Member

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    I am deciding if I should pay cash or take out a loan for my sunshade.[/QUOTE]


    I would do neither. If you pay cash now, you are out that cash. If you take a loan on it at 0.74% over 3 years, you can put that capital into something even simple like a time savings account with high bearing interest. I'm putting my tesla fund into an emerging country's bank and earning 8% on it vs the 1.49 from my credit union over 60 months.. That's roughly about a $5 net gain on the sunshade. Well worth it IMHO.

    If I were you, I would lease the sunshade. That way when you return it, you don't suffer the potential depreciation by being obsolete by the addition of solar powered 1kwh sunshades out in 2018 and air cooled sunshades by 2019 and heads up display on the 2020 variants.
     
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  18. K-MTG

    K-MTG Sunshade Captain of TMC

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    I would do neither. If you pay cash now, you are out that cash. If you take a loan on it at 0.74% over 3 years, you can put that capital into something even simple like a time savings account with high bearing interest. I'm putting my tesla fund into an emerging country's bank and earning 8% on it vs the 1.49 from my credit union over 60 months.. That's roughly about a $5 net gain on the sunshade. Well worth it IMHO.

    If I were you, I would lease the sunshade. That way when you return it, you don't suffer the potential depreciation by being obsolete by the addition of solar powered 1kwh sunshades out in 2018 and air cooled sunshades by 2019 and heads up display on the 2020 variants.[/QUOTE]

    I agree, not sure if I should pony up to the gold plated sunshade. It might make a good investment.
     
  19. Merrill

    Merrill Active Member

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    For those who have leased a Tesla, do they include the maintenance or do you have to pay for it over the 3 years.
     

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