Current lease is up soon - what do do between now and Model3?

[sbtz]

My current lease is up in about three months. I have a day-one reservation (along with 100k+ others) for a Model3... what do I do between the time my current lease is up and I actually get my model3?

I had been considering picking up a Model S on a 2 or 3yr lease, but now there's the added wrinkle of the federal tax rebate expiring before even a 2yr lease would be up. Buying a new car would result in a big depreciation hit if I sold it in 18mos, and just being honest here - I'd rather not buy a used econobox to putt around in for those 18mos instead (which would be the most prudent option).

Any other options out there?

 

[patrick40363]

Best is to go for a 2 year lease. Tax rebate will probably be extended if Clinton is elected.

 

[purplewalt]

My understanding if you get a lease, you do not get the Federal Tax Rebate.
The Lease Holder gets the rebate, not the person Leasing the vehicle (you).

There are currently a LOT of CPO Model S in the $50 K range.
Since all CPOs have already been titled, you would not be eligible for the Federal Income Tax Rebate.
Not a bad way to putt around for 18 months // two years.
Even a S60 would be a great short term car, and you would not lose that much in depreciation.
An S85 would certainly be a valid car, with less depreciation.

And owning a Model S might move you UP in line for your Model 3.

Or maybe you can assume someone else's existing Lease on a better quality car (not an econobox)?

 

[RobertF]

Research buying something that has already been depreciated heavily with a view towards selling it when your 3 arrives. Leasing something is iffy depending on when your 3 is available. Lastly, you might contact Tesla, explain your dilemma and see if they will give you a grace period to order your 3 without loosing your priority so you can lock in a workable short term lease. Good luck.

 

[jsrawa]

I know that owners get priority for 3 delivery but do we think or know this will be true even if you become an owner after you placed your reservation?

 

[Model 3]

I know that owners get priority for 3 delivery but do we think or know this will be true even if you become an owner after you placed your reservation?

Yes.

What we don't know is if you have to be an owner when they opens the Design Center for ordering the Model 3, or if it is enough that you have owned a Tesla sometime earlier.... And how much this priority is worth.

 

[tmarcc]

I agree with the 24 month lease option. I chose to lease a heavily discounted inventory 2016 old-facia P90DL for 24 months. I took delivery yesterday. It will serve as a convenient bridge until the Model 3 is out.

See this thread for more info:
Snagged a P90D Inventory car for $700/mnth on the new 24 month lease

 

[number12]

What does Fed tax credit expiring have to do with a decision now?

Buy a CPO... get a good deal, hopefully do not lose your shirt when 3 comes out and trade it in and pay taxes on difference.

 

[xav-]

I am in the same boat as OP.. But I am not convinced that throwing $22k for 24 months/20k miles of temporary ownership of a model s is a good option.

You can buy a freaking brand new car for this much!!

Here are the option I looked into:
- buy model s as opposed to model 3
- lease demo BMW 3 series. Problem is we drive a little too much. Can be done at around $350 a month with 0 down
- buy brand new civic with sensing $20k
- use Uber/rent car occasionally

I really can't make up my mind.

 

[sbtz]

I am in the same boat as OP.. But I am not convinced that throwing $22k for 24 months/20k miles of temporary ownership of a model s is a good option.

You can buy a freaking brand new car for this much!!

Here are the option I looked into:
- buy model s as opposed to model 3
- lease demo BMW 3 series. Problem is we drive a little too much. Can be done at around $350 a month with 0 down
- buy brand new civic with sensing $20k
- use Uber/rent car occasionally

I really can't make up my mind.

My choices are starting to solidify around a three year MS60 lease (same cap reduction goes further and if qualify for the CA tax rebate), buying a new MS60, and buying a CPO cheaper MS. The configurations I'm looking at would be 77k for new, 60k for CPO.

My admittedly crude math shows the cost over *3yrs* for finishing the lease to be about 33k, selling the new car ~31k, and selling CPO ~25k (payments+paying off loan+down-estimated value at 3yrs).

Lease is just simpler and lower risk. New would be lower specced, but my choices plus AP. CPO is cheapest, could probably get a P85, but used and no AP (and other useful updates like LTE).

The wise choice would be for me to get a used civic or maybe a new Volt. Doubt it's going to happen though. (I have the opposite of driving a little too much - I'm at 13k miles total at the end of my current 3yr lease)

 

[aaelghat]

If your commute isn't that long, you may want to look into a used Volt. Volt's have taken a big depreciation hit, and many are in the $10 - $15K range.

The first generation of the Volt allowed you to go 38 miles on battery power only. If you only drive 13,000 miles in 3 years. it might make a lot of sense. With a used Volt, someone else would have already paid for the depreciation.

 

[hckyplyr]

just buy out your old car... keep it for 18 more months and then sell it.

 

[sbtz]

If your commute isn't that long, you may want to look into a used Volt. Volt's have taken a big depreciation hit, and many are in the $10 - $15K range.

The first generation of the Volt allowed you to go 38 miles on battery power only. If you only drive 13,000 miles in 3 years. it might make a lot of sense. With a used Volt, someone else would have already paid for the depreciation.

Yeah - I know, that's absolutely the *right* choice. I've been trying to convince my wife that for me, the Model S (or 3 for that matter), would never be a practical choice, but rather an emotional one. I suppose I'm just trying to convince myself now...

just buy out your old car... keep it for 18 more months and then sell it.

Buyout is nearly 40k. Only getting quotes around 32-34k for trade-in/sell right now, so it appears I'd be immediately significantly upside down.

 

[Ormond]

Yeah - I know, that's absolutely the *right* choice. I've been trying to convince my wife that for me, the Model S (or 3 for that matter), would never be a practical choice, but rather an emotional one. I suppose I'm just trying to convince myself now...



Buyout is nearly 40k. Only getting quotes around 32-34k for trade-in/sell right now, so it appears I'd be immediately significantly upside down.

You might be able to negotiate your buyout, or the dealer may be able to buy it for less and sell it to you.

 

[Ormond]

I read this post last night and was totally depressed. My lease is also up soon. I pay much more than $1,000 a month on my lease. I'm considering a Model X 90D. I'd probably get more utility from a Subaru Outback and far fewer problems.
I hate reading about financially responsible folks discuss their options. A 2013 Volt, seriously?


P.S. This is partially tongue in cheek, but you all did make me question my potential Tesla purchase.

 

[pinski]

My current lease is up in about three months. I have a day-one reservation (along with 100k+ others) for a Model3... what do I do between the time my current lease is up and I actually get my model3?

I had been considering picking up a Model S on a 2 or 3yr lease, but now there's the added wrinkle of the federal tax rebate expiring before even a 2yr lease would be up. Buying a new car would result in a big depreciation hit if I sold it in 18mos, and just being honest here - I'd rather not buy a used econobox to putt around in for those 18mos instead (which would be the most prudent option).

Any other options out there?

You know the best option, even if it's not something you want to do. Buy the used economy car. It doesn't have to be a penalty box, but if you buy something that has largely depreciated, you can sell it when you're done without much loss if you want the Model 3 to be your only vehicle. Or, you could buy something that you would want as a second car after the Model 3 arrives.

You can find nice used 2013-14 Accords or Mazda 6's for under $15k. After about two years and commensurate additional mileage, you could probably still sell either for at least $10k.

I am in the same boat as OP.. But I am not convinced that throwing $22k for 24 months/20k miles of temporary ownership of a model s is a good option.

It really isn't, unless you have money to burn. Best option is buying something reliable and inexpensive on the used market that has already experienced to bulk of its depreciation, so it won't cost you much to run and then sell it.

 

[Bimbels]

If I needed a car between now and my Model 3 for any reason, I would buy a good reliable used car with good resale value.

 

[Vitold]

If I needed a car between now and my Model 3 for any reason, I would buy a good reliable used car with good resale value.

Yeah, but what about safety? Any used car with good resale value will have pretty bad small offset crash rating.

 

[EinSV]

It is a personal decision how much you want to spend on a vehicle, but I ultimately decided to get a two-year lease on a Model S to tide me over until the Model 3. There are a lot of variables here, but when I went through that process I compared Tesla's 2-year leases to others in the market for similarly priced vehicles and concluded that Tesla's two-year leases are a very good deal.

For example, a 2-year/10K mile lease on a Mercedes E400 (MSRP $60,650 -- about $5K less than a base Model S60) with $5K down is $1013 per month. A two-year/12K mile lease on a 2015 Lexus GS 450h (MSRP $61330 -- also about $5K less than a Model S) is $1255 per month with $5K down. These are roughly double the monthly payment for the higher priced Tesla ($593/mo), even before gas savings. (I couldn't find any comparable BMW two-year leases). I ended up finding a good deal on an inventory car, but even if I hadn't I thought the two-year lease Tesla is offering is reasonably priced compared to similarly priced vehicles in the market. It's actually very competitive with two-year leases for much lower priced vehicles.

Of course, good deal or not, whether you want to spend money on a Model S lease now or save by buying a CPO or leasing/buying a much less expensive car is a personal decision. Based on a variety of factors -- including "life is short" -- I decided not to wait any longer to start driving a Tesla.

 

[bro1999]

I've seen quite a few Model 3-to-be'ers talk about picking up a used Gen 1 Volt to tide them over. Since they have already taken the huge depreciation hit, likely will only be out a few k after 24 months, if the plan is to flip the Volt after the 3 arrives.