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tdelta1000
Active Member
The line was pulled directly from the Model S section on the Tesla Motors official website. "A full suite of payment options including leasing and financing will be offered."
It's the same sentence that's been there forever and, as has been noted, leases will be offered later at some point down the line. If you want a lease on day 1 then you'll have to broker it through a 3rd party rather than through Tesla, but be prepared to pay through the nose for it since the lease company will charge a premium to guarantee a trade-in value on a car with no history from which to judge trade-in values.
EVNow
Well-Known Member
It makes little sense why there wouldn't be a lease option. Afterall, 3rd party lease companies can offer the lease.
By the time my Leaf is up for lease - if there isn't another nice EV around, I'd like to get Model S (even though its too big), if it was available for lease.
By the time my Leaf is up for lease - if there isn't another nice EV around, I'd like to get Model S (even though its too big), if it was available for lease.
Competing car companies have now shifted to advertising monthly lease costs (which seem manageable to customers) rather than the outright price (which seems scary big). By avoiding offering a lease, Tesla forces a sticker-to-sticker comparison, which is better than a lease-payment-to-lease-payment comparison, because:
My guess is that the end-of-lease value is so uncertain that lease companies are seeking very high premiums. Car companies also hide discounts and incentives in lease rates. So, if Tesla isn't willing to discount, and if leasing partners are asking a premium lease rate to hedge against uncertain value in 4 years, the Model S lease rate would be much higher than the lease of a comparable BMW or Mercedes (even though the sticker prices are about the same).
My guess is that the end-of-lease value is so uncertain that lease companies are seeking very high premiums. Car companies also hide discounts and incentives in lease rates. So, if Tesla isn't willing to discount, and if leasing partners are asking a premium lease rate to hedge against uncertain value in 4 years, the Model S lease rate would be much higher than the lease of a comparable BMW or Mercedes (even though the sticker prices are about the same).
Mycroft
Life happens
EVNow
Well-Known Member
How many people think Volt & Leaf cost the same (even though their lease rates in '11 were the same !).
Tesla can just use the same residual % as other EVs. Lease companies shouldn't have any problems with that. All it needs is someone from Tesla to sit down and negotiate. It does not take a ton of effort and time from executives.
Companies rarely handle the lease themselves or if they do it's through a spin off company. Tesla would get full payment up front from the lease company that's actually handling the loan. A lease is just a loan with some extra predefined terms in the contract.
You are describing a 3rd party leasing company that will be available to you. BMW, GM, and Ford, etc. all handle their leases in house with their own credit organizations. Anyone is able to go to their bank, credit union, lease company and have them provide thier lease financing for them. It will not be Tesla financed however.
EVNow
Well-Known Member
None of those companies do their own leases. It is all thr' a different company - ofcourse major OEMs have thier own leasing spin offs.
Still, for Volt, GM is using a couple of external companies do the leasing - like US Bank. Tesla can do the same.
Third parties currently don't do any EV leasing - still too new. Also, leasing needs to take car of the 7.5K in tax credit.
Tommy
Member
Tesla has experience leasing, has a lease program with the Roadster and therefore questions and concerns about end of lease residuals would not seem to be valid reasons to not offer a lease on the Model S. Keeping in mind that leasing will be available but not at the start of production, the reason for this delay (albeit maybe only 6 month) I believe is because Tesla does not have the infrastructure in place to handle RETURNING Model S leases. The delay buys them time to properly get the needed additional retail space to resell the returned leases. That's my take.
Yes, but I looked at the roadster lease. They took a $150,000 car and brought it back at $60,000 after three years! Payments were very high and I calculated that you were better off with a loan. Anyone out there with a roadster lease? What is your payment?
Exactly my point earlier. Until depreciation costs for the Model S are well known specifically, and for EVs in general, you'll pay through the nose for a lease. You're going to be better off 99.9% of the time just getting a normal loan.
As for whether Tesla should offer leases now, until supply exceeds non-lease demand, there's not much value in it for them. Yea, they'll "lose" a few lease-only customers, but as long as demand exceeds supply it doesn't have an impact. Once they need to pick up the lease-only market to augment demand, I'm sure they'll do that.
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The info is not there anymore, but I seem to remember the website had the Roadster lease listed in the $1600's per month (yikes).
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