Buying Model S, Need Suggestions

[kholy]

Hello!

I wanted to get some feedback and information from you guys since people here sound like experts! I am 30yr old and I think I am ready for my first Tesla. Currently I do have a Model 3 (March 31) reservation but I really like the look of the S and performance a lot more than the 3. I have been considering buying a new Model S 75. I am trying to figure out my best option for the car that I most want. Here is some of the things I would like on the S: Blue exterior, Ultra-White Interior, Auto-pilot

I have been able to find a few new inventory that are $1,000 off from what they cost new so nothing that great compare to building new. Do you see any larger discounts ever on the Model S 75 than a 1k discount?

With that all said then it comes to payments

So I currently have a 370z which Tesla offered me 14k for. I think its low for my car and i feel i could sell the car for 18-19k privately. If i buy the car is it best to put as much down up front and have lower month payment (18k car + 1k model 3 reservation + 6k cash) 25k total down would be around $850/mo. I would get the 7500 to refill the extra cash i put down to get it to 25k

Or is it better to put only the 18k that i am getting for the car and pay a higher monthly payment? 950/mo

They also through out the possibility of leasing the car

The numbers were $90,000 for the car, -2000 adjustment total 88k for the Model S
Putting 14k (trade) + 2,500 deposit + 1,000 model 3 reservation my monthly payment would be 700/mo for 15k miles for 36 months with a 54k residual value

So if i do my math correctly i would be spending $41,800 over the life of the lease with a buyout value of 54,000 at the end of the lease. If i did purchase this car at the end i would be spending an additional 7-8k and not receiving the federal tax credit.

Sorry for the lenghtly post but i hope someone can help give me some insight or suggestions

Thanks,

Kevin

 

[gabeincal]

Why not buy? I put down around 30k if I remember and my monthly payment on a 75 is less than $600/mth for 72 months at 1.99% (almost free money).

 

[kholy]

Why not buy? I put down around 30k if I remember and my monthly payment on a 75 is less than $600/mth for 72 months at 1.99% (almost free money).

the .99 financing is why i am thinking maybe put less down? maybe only 15k or so and just have a higher payment since its like "free money"

 

[gabeincal]

the .99 financing is why i am thinking maybe put less down? maybe only 15k or so and just have a higher payment since its like "free money"

Absolutely. If you can get away with .99% interest, put as little down as possible in my opinion...

 

[gavine]

If you lease, the tax credit should be factored-in to the lease. I don't know if they treat it as a down-payment, selling price reduction or what, but it's definitely available in one shape or another on a lease.

 

[JPUConn]

Leasing is great to hedge the risk of tech improvements accelerating the depreciation of your car beyond the typical depreciation curve. I don't know the money factor on tesla leasing but it may be higher than the .99% through Alliant on financing.

Downfall of the lease is that it does not make sense to buy it after the lease (higher than market residual) and you don't get the $7,500 rebate. If you own your own business or can run the lease through that end then it becomes a much easier decision.

Good luck with the purchase! You're in the end of the quarter so maybe the OA has an inventory vehicle they can deliver before end of this month to make the deal sweeter (even a leftover 90D if there are any around as those were in 75D price territory after discounts)

 

[CameronB]

Absolutely. If you can get away with .99% interest, put as little down as possible in my opinion...

At a super low 1% interest rate, it is like free money. With a low(er) down payment your monthly payments will be higher but your total cost for the money will be next to nothing.

You'll get the federal tax kickback and likely something from your state too.

Also, in your calculations, don't forget to subtract an extra $1k you'll get from a current owners referral code. Every little bit helps.

I struggled buy vs lease and how much to put down as well. I ultimately decided to buy and put minimal down (didn't even trade in a previous car) and take advantage of low interest rate.

Everyone's situation and circumstances are different, of course. But good luck and hope you get into a Model S soon. Fantastic car.

 

[kholy]

Has anyone been seeing 75's with anything more than a 1k discount?

 

[eternal]

For your tradein you will get low balled.

You will be better off if you get a trade in price from VROOM or carmax. They will match either price.

There are a few cars with higher adjustments but in the 3000 range. None that meet your specifications for colors

 

[kholy]

So tesla offered me 13k for car and i went to carmax and got a 14k estimate from them which tesla said they would match... Do you think VROOM would be better than CarMax?

 

[JPUConn]

$3,500 if you like red:

https://www.tesla.com/new/5YJSA1E23HF202785?redirect=no

https://www.tesla.com/new/5YJSA1E27HF201249?redirect=no

 

[boaterva]

So tesla offered me 13k for car and i went to carmax and got a 14k estimate from them which tesla said they would match... Do you think VROOM would be better than CarMax?

You need to ask that they do match Vroom first.... mine only matches CarMax!

 

[JPUConn]

Being so close to end of quarter they may match carmax. When I traded my Jeep to tesla the did call their 'buyer' to try to get a few more $ out of it.

 

[gavine]

We decided to buy our Model X instead of lease for one reason....it's an expensive car with a very large monthly payment (hardly put any money down) and if something changes with our financial situation and we can no longer afford it, we can sell the car. With a lease, we can't.

We usually aren't upside down on our cars because of low mileage. Plus we have the $7500 tax credit to cushion the blow.