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Discussion in 'Model 3' started by DAMON FELKER, Jun 16, 2016.
AS A NEW RN PERSON IN SO CALIFORNIA SHOULD I BUY OR LEASE ?
WHAT? OMG CAPS
Depends on your finances and driving habits...
Depends on you. Judging by your first post its hard to say, but here's my opinion. Leasing is for people who have the money to flip cars for the new model every 2-3 years and for the ignorant/young who don't plan more than a year in to the future.
With very few exceptions, buying is almost always better in the long run for a family/commuter car. Dealerships only promote leases because it makes them easy money and there's a lot of people derpy enough to think its a good thing. It makes sense for some people but not the majority.
One angle you need to be sure to consider is that Tesla is not known for giving discounted lease deals like many other car manufacturers. First, determine how long you are going to keep the car before you get a new one. If it will be 3 years or less, compare a lease vs. a purchase. Find someone you know who has or does lease cars and ask them to share their experiences with you. Right now the interest rate through Alliant Credit Union for a Tesla purchase is a much better deal then the "money factor" (which serves the same purpose as an interest rate on a purchase) charged for a Tesla lease. Leasing isn't necessarily a bad deal, but it could be if you don't do your due diligence on it for your own unique circumstances.
The advantage of a lease is that you can walk away from the car in three years. The disadvantage of a lease is that you are stuck with the car for three years. (Sort of, but not really, there are lease trading/swapping websites that can get you out sooner)
Mileage limits are always the killer. $0.25/mile ($250/1,000 miles) over the limit set by your initial lease choice.
Compare the financing of the two.
My most recent lease was cheaper than purchasing the car. At the end of the 3 year lease I bought the car and overall ended up saving money.
It all depends on what you want to do with the car and what interest rates are available.
Buy, for UA.
My wife has appropriated my Model 3 reservation for her hour long commute (50 miles each way). Between the fuel savings, the autopilot, and the lack of a.proper hatchback, making this commute in a Model 3 is a total win.
But, she's going to be putting at least 25k-miles per year onto the car. I haven't seen a lease deal which works out favorably for this. Also, assuming the car is reliable, we'll want to keep it for hundreds of thousands of miles -- just like we kept our Prius.
So, buying makes sense for us.
Leasing could work for a 2nd car, since the 2nd car won't absorb so many miles. But we already have that car for that (a Mazda5), which should last until the Model Y is available. But since we'd probably want to keep the Model Y long term, buying might be the right choice.
What makes sense for you really depends on your situation.
Reason I'd lease
- Don't want to buy without full autonomy hardware
- Cheaper than buying and selling after 3 years
I have been wondering this as well, normally I would never consider a lease, but a Tesla isn't like a regular car.
Leasing would make sense since you can get the newest in AP and battery technology, which in a regular car is nonexistent.
For me the main factors are:
- total ownership cost for 4-5 years Vs total leasing cost for 3 years.
- car depreciation after 4-5 years.
- repair costs after warranty.
Thanks the for the reply I just think Tesla always in the past, has improved their cars on a weekly basis a car you buy today is best at that point then tomorrow it will be better i.e. 85 , 85P, 85PD, etc. but at least tesla owners get Over the Air updates
Not necessarily... especially with Tesla lease deals.
I lease my Leaf because I went in knowing I wouldn't want a three year old Leaf with a degraded battery.
Going to be buying the Model 3 instead of leasing because I know I want to keep it for a while and plan on putting LOTS of miles on it.
The other known quantity is the limited battery degradation for Tesla in general, so longer term ownership shouldn't be a problem.
Tesla also have a history of constant improvement and decent compatibility with older models.
So I'm sure that when the next big battery upgrade comes along, Tesla are very likely to offer it to older vehicle owners.
Not saying that would be the case. Just saying, that would be a reason to lease, if true.
A good way to figure this out is to look at Model S - and see what would have been the buy&sell cost vs lease cost after three years. I don't know whether anyone has done some analysis on that.
I don't think anyone has done that, I have asked before. I have tried, but I have no idea what the depreciation for a Tesla is or by how much a Tesla can be sold for after 3 years.
I can think of multiple ways to do this.
- Use public std car sources like KBB or Edmunds or Craigslist
- Use Tesla specific sources like CPO or the classifieds here on TMC
The tricky part would be to take into account sales tax and incentives - and those vary by state.
Here is a pretty good thread to give you an idea of Tesla's resale value. It is about Tesla's "Resale Value Guarantee" which is still offered as far as I know, as long as you finance the car through Tesla.
Debating the Resale Value Guarantee
All one has to do to decide lease vs. purchase is to choose the new Tesla you are interested in, then ask Tesla to give you the numbers/details for that car in both their Resale Value Guarantee program for a purchase, and their lease program details with residual value. Now you have real guaranteed numbers to compare lease vs. purchase for a Tesla.
Assuming this post is correct, lease would win out.
True enough. As always, if you are willing to sell it yourself that could change the picture. But at least it gives you a starting point to apply to each individuals unique situation to help them make a lease vs. purchase Tesla decision. My current ICE vehicle is a 27 month lease... got such a good deal on it I couldn't pass it up. When I compared numbers, etc. at the time, it beat the pants off of a purchase by far. All my other vehicles have been purchases.
I drive around 20,000 miles a year, so I would never get a good deal on a lease.