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Does Tesla let you pay off your lease in full?
- Thread starter gizmo84
- Start date
livingthedream
Member
No reason why you couldn't, although it seems odd you'd want to do it that way. Btw, it's actually usbank (at least my lease thru Tesla).
swaltner
Active Member
They may let you do it. You should be mindful of the potential huge financial hit. Currently, if you drive your leased Tesla off the lot and proceed to get in a crash on the way home, you're out the down payment ($6,540 for a base Model S). If you did the same thing after having paid the down payment and pre-paid EVERY lease payment for the next 3 years, you might be out the full $36,870 ($6,450 down payment + $845 * 36 months). I'd make sure the bank clarified what would happen with the pre-payments in the event of a total loss during the lease payment before agreeing to do that.
Automatic bill payment would be the way to avoid the hassle of the monthly payment and the potential (for me) a VERY PAINFUL financial loss.
Automatic bill payment would be the way to avoid the hassle of the monthly payment and the potential (for me) a VERY PAINFUL financial loss.
swaltner
Active Member
One clarification on my post (#3 from above), was that I was talking about a crash that totals the vehicle, not one where the vehicle gets repair. It was implied, but not stated directly.
Why not just put all the cash in an account and set up automatic bill pay? That way, you don't have to even look at it for the next three years and you earn a tiny bit of interest on that cash. You might be able buy a free six pack or two at the end of those three years!
Even if you have the money don't pay off your lease completely up front:
1) You never know if your situation changes and you need the financial flexibility.
2) Being yourself and unique is a good thing, but not when it comes to a lease. If 99% of people pay their lease monthly or biweekly (i don't know the stats but probably not far off the mark) and then your situation changes and you need to find someone to take over your one payment lease, you now shrunk the potential of this happening to your satisfaction greatly.
Trust me i know. I did the single lease payment on a mercedes C class, thought we were done with child #1, then along came child #2 and then a SUV was more practical (less back breaking putting a baby in the car seat + more space). Even if you are 99.999% sure nothing will change in your life, as eisbock said, leave your money in the bank and treat yourself to something.
1) You never know if your situation changes and you need the financial flexibility.
2) Being yourself and unique is a good thing, but not when it comes to a lease. If 99% of people pay their lease monthly or biweekly (i don't know the stats but probably not far off the mark) and then your situation changes and you need to find someone to take over your one payment lease, you now shrunk the potential of this happening to your satisfaction greatly.
Trust me i know. I did the single lease payment on a mercedes C class, thought we were done with child #1, then along came child #2 and then a SUV was more practical (less back breaking putting a baby in the car seat + more space). Even if you are 99.999% sure nothing will change in your life, as eisbock said, leave your money in the bank and treat yourself to something.
NuTony
Member
Thread from the dead question.
Does Tesla do a one time payment Lease?
Some companies allow this as a way to pay less over the term (they keep you up front bulk lease total saving you interest meanwhile they are investing that same cash and making money off of it.
From what I understand, the "bank" of cash you gave the leasing company is pulled little by little so if you total the car or someone else does stolen etc, you get the prorated remaining amount if that lease back.
Would love to know if they do.
If nobody knows I will reach out and ask I guess as I am about to order a model 3P.
Does Tesla do a one time payment Lease?
Some companies allow this as a way to pay less over the term (they keep you up front bulk lease total saving you interest meanwhile they are investing that same cash and making money off of it.
From what I understand, the "bank" of cash you gave the leasing company is pulled little by little so if you total the car or someone else does stolen etc, you get the prorated remaining amount if that lease back.
Would love to know if they do.
If nobody knows I will reach out and ask I guess as I am about to order a model 3P.
I'd take that money and put in it investments. I do quite well with investments, and especially lately even more so. I can liquidate them anytime so why throw good money down the drain pre-paying. Even on a purchase I make substationaly more than the interest rate on the loan. Leasing doesn't make sense on a 3 anyway with the limited deprecation; even if you only keep it 3 years. But if you have to lease don't prepay.
With the low depreciation that Tesla have, that would be the best thing to do. If just does not make sense to lease a car that only depreciate 10% in 3 years while paying as if it was depreciating 40 or 50%, and then at the end not being able to even by the car.
TheRFMan
Member
If the OP has a business and used the car for it, the entirety of the one-time lease payment could be tax deductible in a single tax year. That would be a good way to offset on one-time increase in business income.
Typically the lease deduction would need to be accrued year by year, even if paid upfront. Depreciation works the same way - yearly deductions for a listed asset. Even if you took section 179 (expensing it), you would be limited to $11,160.
There are plenty of irs rules around using a car in business. Many times, it is not worth it (if it is mixed use - personal and business).
If you’re gonna go the full-lease-payoff route, might want to examine the potential savings if you own and resell it...
Bigriver
Member
What Tesla has ever depreciated only 10% in 3 years? I paid $64k for my model 3 2 years ago. Take off the tax credit effect and call it $57k. Current trade in value is $42k. That’s 26% in 2 years. And my 3 year old model X is at about 50% depreciation. As long as Tesla keeps improving their cars and lowering the prices (both which are great things that I applaud) depreciation is going to be substantial, as my older car will always be compared to today’s price and features.
Well I sold my Model 3 I bought at the end of 2019 shortly after the pandemic started for more then I paid for it. Of course the pandemic was in full swing and the factory was shut down. But either way I made money on that car. I keep constant track on the used v new market in my area and used were above new. Since everyone in the house was, and still is work from home till at least early next year why make car and insurance payments on multiple cars? So we went down to one car for the house. Not only did I make money off the sale, I saved money on the loan/insurance payments for not having the car, and when I'm ready to go back to work I can buy a new car with brand new, latest options, full warranty and extra referral miles. Win, win, win !
Sure this is an extremally rare case but it shows that it happens.
I also had a 3 that was totaled (by some jerk without a license going through a red right turn) in 2019 and even though it was near new with almost no mileage the insurance said I would be getting only a fraction of what I paid. Especially since in my state there is none of that purchased value reimbursement within 6 / 12 mth other states have. Instead they said it's based on comp's. They ran the comps and every 3 that was close to mine was selling used for more then new; and they all were older and with more miles. Needless to say I again was paid more than purchase price.
Again this is an extremally rare case but it shows that it happens.
There have been official charts from creditable sources in other threads showing 3's have very little depreciation. Based on my two experiences in the last 12 mths I support it as well.
Sure this is an extremally rare case but it shows that it happens.
I also had a 3 that was totaled (by some jerk without a license going through a red right turn) in 2019 and even though it was near new with almost no mileage the insurance said I would be getting only a fraction of what I paid. Especially since in my state there is none of that purchased value reimbursement within 6 / 12 mth other states have. Instead they said it's based on comp's. They ran the comps and every 3 that was close to mine was selling used for more then new; and they all were older and with more miles. Needless to say I again was paid more than purchase price.
Again this is an extremally rare case but it shows that it happens.
There have been official charts from creditable sources in other threads showing 3's have very little depreciation. Based on my two experiences in the last 12 mths I support it as well.
CapeOne
Active Member
10% in three years??? There have already been a number of 2020 M3s that have been offered for sale for more than 10% below original retail.
CapeOne
Active Member
It's a flawed study, or at least very misleading. Even 2020 Tesla M3s are being routinely listed for sale for more than 10% below original retail.
Just a few examples available right now:
Original retail $61,690. Asking price $52,700. 85.4% of original retail.
2020 Model 3 | Tesla
Original retail $58,690. Asking price $52,000. 88.6% of original retail.
2020 Model 3 | Tesla
Original retail $59,190. Asking price $49,999. 84.5% of original retail.
2020 Used Tesla Model 3 Long Range AWD. Deep Blue. Black. Full Self Driving. 9,187-miles. $49,999. Lake Forest , Illinois
Original retail $50,190. Asking price $43,000. 85.7% of original retail.
2020 Used Tesla Model 3 Standard Range-Plus. Full Self-Driving. Autopilot. Solid black. White. 7,563-miles. $50,000. West Palm Beach, Florida.
I could go on. Plus, these are retail/asking prices, not wholesale/trade-in values which would be even lower.
Someone buying a new M3 today expecting it to depreciate only 10% in three years is going to be very disappointed.
Have a look at a 2018 M3 with 16K miles... 2018 Tesla Model 3 - Carvana
That car was probably about $43K when new, currently selling for almost $39K and yes, I'm comparing retail to retail, not retail to wholesale.
It not be 10% but is not 40% or 50% which is usually what the leases assume the depreciation to be.
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