Some things to consider: The tax break is only up to your tax liability so many people are going to be surprised at tax time if their liability is less than $7500. Leasing takes depreciation out of the picture on a car that is very risky. From long experience I have learned you NEVER want to be in any high dollar car out of warranty. They are enormously expensive to repair. At this time I only lease Teslas and BMWs . Both have 4 year fix everything warrantys both have 3 year leases. Never have to worry about a $10,000 bill when a/c craps out(MB S class). Federal tax credit was a waste of time for me as I optimize my tax liability and you get it all on a lease as they add $7500 to the residual to calculate.
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Buy or Lease Model 3
- Thread starter DAMON FELKER
- Start date
heysteveh
Member
If you drive 20,000 miles a year you will never get a good deal on resale if you purchase either
. Whether you lease or purchase you will pay for the miles that you put on a car. On a lease you just find out how much its going to cost you from the beginning. On a purchase most people are in for a rude awakening when they try to trade or sell a three year old car with 60,000 miles on it. It is a proven fact that miles on the odometer is the number one factor in determining the resale value of a vehicle. And of course the leasing companies are well aware of this... thus the high cost of miles on a lease as you climb above 15k per year.
EVNow
Well-Known Member
A lot of times you can pre-purchase miles i.e. instead of getting a 12k/Month lease, get a 20k a month lease. Much cheaper than paying for over miles at the end. For eg. the difference between 12k and 15k lease for Leaf was less than $10 a month.
heysteveh
Member
Sorry, that is exactly what I meant to say... just a 20K mile a year lease as opposed to paying over miles. My understanding though is that a 20K mile a year lease, if it is even offered by the leasing company, is more expensive "Per mile" then going from 10K to 15K. Haven't ever checked it out for myself though.
It does not take depreciation out of the picture. Depreciation is the major thing that drive the price of a lease. There are some exceptions to that such as these EVs like the Leaf or I3 where automakers are using leases as financial shenanigans to hide losses but that is the exception.
Whether the model 3 should be leased or not primarily depends on whether tesla will give good deal to people buying on a lease. Will the residual value that they offer be good enough? Considering how many orders are lined up I would personally expect resale value to be outstanding. Will they match that? Why would they? They have half a million orders lined up. They will not offer good terms on lease they don't need to. IMO
