Decreased Residual Value

[brkaus]

I have trouble parsing this.

Are you saying nobody was leasing Tesla before the sunset of the Fed EV tax? This is obviously very untrue.

Heh. I can't read it either. I didn't even have a glass of wine with dinner... Let me start over

A Tesla leased under the $7500 tax credit, has the residual value increased by the credit.

A cash/finance sale at the same time, the purchase price is decreased by $7500.

Both cases reduce the cost to the purchaser. For a lease, the payments end up lower, although not as good of a deal as if they decreased the purchase price.

But -

Cash / finance purchase: $112,000 car - $7500 credit = effective $104,500 car purchase. If I use a random 55% 3 year depreciation, the car is worth $62,700 after 3 years.

Lease: Same $112,000 car. They did some math, perhaps used 55% depreciation. They come up with a $61,600 residual. Then, to give the buyer value from the credit, they add the $7500 back in - so the residual becomes $69,100. Higher the the other cars on the market.

So, adding the $7500 to the residual results in leased cars that will rarely be worth purchasing at the end of the lease. Of course assuming the lease used a similar depreciation rate.

 

[brkaus]

Sadly I did...like I said I can buy a brand new performance X with lud and the new front motor and adaptive suspension and 10 to 15% more range for the same price I paid.

True. But if they didn’t advance “state of the art” Tesla would quickly vanish.

It looks like they are trying to keep roughy the same price and include more. I’m sure if the market would support higher pricing they would gladly do it. It isn’t like they have a choice, they need to move cars. There is also a lot of advancement potential with a new product. Very steep part of the development curve now.

Perhaps why they are kicking in the freebie for ludicrous. Good for the returning buyers and good for Tesl - as people refresh and move up to performance. I would, of course, prefer a discount on a regular model. If I could swap for a current 100d for $20k I’d do it.

At least you do have the protection of a lease. So you have a fixed $ commitment.

Think of all the new stuff that will be in the car next year!

 

[Zero CO2]

I just bought my 13th Tesla yesterday, I made the mistake 1 time of buying a new one for this exact reason.

Tesla is constantly adding options and whatnot that affects the price.

Never again.

i broke my rule of never buy new vehicle and then bought a new Tesla ....in retrospect a mistake ..... we are all in the same boat remember a car is not an investment .... Telsa for me is totally different from legacy car companies .... I bought my Toyota 4 runner and never paid attention to the improvements and or price of future model years because i knew the improvements were minimal and i know it will depreciate and it is not an investment .... at least for the current iteration ...

Telsa is in the phase of constant significant improvements.... in 2017 my Model S seemed great ... now it seems obsolete in just 2 years... however i am never going back ... so i will have to learn to operate in the brave new world Tesla has created ....

my next Tesla is likely to be a lease for just this reason

so i need to run my model S into the ground