Good time to lease a Model X?

[RavenX]

Hi,

I am thinking of leasing a Model X early February. Is it a good time to lease one or people usually wait for end of quarter? And do you think I should wait for any refreshes that might get bundled into the Plaid update?

The reason I am thinking of leasing at the moment is because the EV revolution is picking up and many companies are getting into the market (Thanks Tesla!) and worried about being left with a potentially outdated car after 3 yrs. Is this a reasonable way to think?

Thanks!

 

[tps5352]

...I am thinking of leasing...

Me too.

I have to return a Honda Clarity fuel cell car in May. For my next vehicle I want to avoid (a) hydrogen (fueling infrastructure in America is just not ready) and (b) gasoline. My casual Internet research suggests that for range, features,and performance Tesla is (still) the best electric car on the market. The Model 3 looks great and the Model S is beautiful, but I'm tall with back issues, so for ease of egress I'll probably go for the larger Model X. So,...

To lease, or not to lease; that is the question...

Perhaps we need to list all the major advantages of leasing versus the benefits of buying. Time for a spreadsheet table!

 

[ewoodrick]

Hi,

I am thinking of leasing a Model X early February. Is it a good time to lease one or people usually wait for end of quarter? And do you think I should wait for any refreshes that might get bundled into the Plaid update?

The reason I am thinking of leasing at the moment is because the EV revolution is picking up and many companies are getting into the market (Thanks Tesla!) and worried about being left with a potentially outdated car after 3 yrs. Is this a reasonable way to think?

Thanks!

While there are a few things that date a Tesla, one of it's biggest advantages is that the car evolves. I have a lot more features in my car now than when I bought it.
After the year-end rush, one of the bigger problems right now is just getting one. Picking a month, let alone a week that you want one isn't necessarily an option. Get in line and wait.

 

[DoctorVenkman]

I bought my MX 100D in 2018, and while I am overall very happy with the vehicle, I am wishing I had leased since my vehicle is already out of date in a number of ways:

1. Less range than a Raven
2. Worse suspension than a Raven
3. Shudder issue
4. Hardware 2.5 vs. Hardware 3.0
5. Various build quality issues (e.g. FWD paint chipping)

In the following year there might be an interior design refresh and/or battery update which would further make my car out of date.

Financially speaking it wouldn't make sense for me to sell and purchase a new MX just for those features, but had I gotten a lease it would happen naturally next year. Software updates are nice but most of them are gimmicky and don't have a huge impact on day to day driving - hardware updates IMO are the most important and you will not be getting any of those.

 

[ewoodrick]

I bought my MX 100D in 2018, and while I am overall very happy with the vehicle, I am wishing I had leased since my vehicle is already out of date in a number of ways:

The question was not if leasing was desirable or not.

As to whether you should wait for a future release? Same answer as if you should buy a computer now or wait to see if the next one will be better. You have to jump in sometime.

 

[msm859]

I bought my MX 100D in 2018, and while I am overall very happy with the vehicle, I am wishing I had leased since my vehicle is already out of date in a number of ways:

1. Less range than a Raven
2. Worse suspension than a Raven
3. Shudder issue
4. Hardware 2.5 vs. Hardware 3.0
5. Various build quality issues (e.g. FWD paint chipping)

In the following year there might be an interior design refresh and/or battery update which would further make my car out of date.

Financially speaking it wouldn't make sense for me to sell and purchase a new MX just for those features, but had I gotten a lease it would happen naturally next year. Software updates are nice but most of them are gimmicky and don't have a huge impact on day to day driving - hardware updates IMO are the most important and you will not be getting any of those.

Not sure if leasing first and "upgrading" 3 years later is any less expensive then buying and "upgrading" 3 years later. Unless you are completely upside down you can sell your car for what you owe - or even make something and then go buy the new car with similar car payments.

 

[DoctorVenkman]

Not sure if leasing first and "upgrading" 3 years later is any less expensive then buying and "upgrading" 3 years later. Unless you are completely upside down you can sell your car for what you owe - or even make something and then go buy the new car with similar car payments.

With all the price reductions in late 2018 and 2019 I am definitely underwater. People buying pre-2019 got screwed on resale value.

 

[motocheme]

With all the price reductions in late 2018 and 2019 I am definitely underwater. People buying pre-2019 got screwed on resale value.

I certainly did get screwed and am underwater a fair amount, despite placing a hefty down payment. A new model S now has more range and features than my car for less money. Sucks for us, but I am very happy to see the cost of the vehicles becoming more affordable for everyone.

 

[VikH]

I haven't seen lease terms lately, but they seem to be pretty bad relative to 2016/2017. Anyone have any insight?

I bought my MX 100D in 2018, and while I am overall very happy with the vehicle, I am wishing I had leased since my vehicle is already out of date in a number of ways:

1. Less range than a Raven
2. Worse suspension than a Raven
3. Shudder issue
4. Hardware 2.5 vs. Hardware 3.0
5. Various build quality issues (e.g. FWD paint chipping)

In the following year there might be an interior design refresh and/or battery update which would further make my car out of date.

Financially speaking it wouldn't make sense for me to sell and purchase a new MX just for those features, but had I gotten a lease it would happen naturally next year. Software updates are nice but most of them are gimmicky and don't have a huge impact on day to day driving - hardware updates IMO are the most important and you will not be getting any of those.

Ravens seem to have the shudder issue as well.

 

[RavenX]

I bought my MX 100D in 2018, and while I am overall very happy with the vehicle, I am wishing I had leased since my vehicle is already out of date in a number of ways:

1. Less range than a Raven
2. Worse suspension than a Raven
3. Shudder issue
4. Hardware 2.5 vs. Hardware 3.0
5. Various build quality issues (e.g. FWD paint chipping)

In the following year there might be an interior design refresh and/or battery update which would further make my car out of date.

Financially speaking it wouldn't make sense for me to sell and purchase a new MX just for those features, but had I gotten a lease it would happen naturally next year. Software updates are nice but most of them are gimmicky and don't have a huge impact on day to day driving - hardware updates IMO are the most important and you will not be getting any of those.

Yeah this is what I am thinking too. Software updates are great but I agree that hardware update is definitely crucial.

 

[DiverDoc X]

Hey everyone I’m new to this, and I have been contemplating lease vs buy also. Spreadsheet of pros/cons is always good lol. Maybe a dumb question but when does Tesla usually release the new update (model) for the year? (For those maybe wanting to wait until vehicle update.)

Thanks

 

[jboy210]

If you do want the latest and greatest than leasing is for you.

Tesla is better than any other vendor at keeping older cars up to data with the latest software and features. But, at some point the cars just don't have the hardware to keep up with the latest features referenced in the software, so they start to lag.

If that bothers you, then lease. Financially it is not the most sound decision for most. But, if you want the latest every 3 years it is the only way to go.

 

[SoGA Fan Club]

Hey everyone I’m new to this, and I have been contemplating lease vs buy also. Spreadsheet of pros/cons is always good lol. Maybe a dumb question but when does Tesla usually release the new update (model) for the year? (For those maybe wanting to wait until vehicle update.)

Thanks

365 days a year! The most recent "model" is the Raven - it came out randomly in March '19. No one ever knows when Tesla will update their cars. Look at the Model S. It got a totally new node in June 2016. You just never know. Model years mean very little to Tesla.

 

[SoGA Fan Club]

If you do want the latest and greatest than leasing is for you.

Tesla is better than any other vendor at keeping older cars up to data with the latest software and features. But, at some point the cars just don't have the hardware to keep up with the latest features referenced in the software, so they start to lag.

If that bothers you, then lease. Financially it is not the most sound decision for most. But, if you want the latest every 3 years it is the only way to go.

I have a December 2014 Model S. I've received MANY updates through the years to keep my car relevant. I recently got the Spotify update which is great. I am hoping they work the bugs out of voice to text before I receive it. Point is, even a now 6 year old car receives a LOT of the updates. Jump in an enjoy the ride. There will ALWAYS be something later and greater.

BTW - I am waiting for the Model X to reach 375 miles on a charge and then I'm going to buy one. I will keep the car at least 6 to 8 years. For me, at this point, I want more range. So, I'll wait until I can get it, and then, once I have the car, I will not look back. I want be kicking myself because 3 months later they came out with AP3.5 or a refresh, or whatever. You have to decide what you want and then never second guess it - because there will ALWAYS be something you'll regret if you second guess.

 

[DiverDoc X]

Great points said... thanks everyone. So then you would pick the long range over the performance?

 

[Tac0Meat]

So I leased my 2020 MX LR & seater when I had the cash to purchase outright.
Why -
For all the reasons said above, new versions with great improvements, better range, faster charging etc etc etc.
I didn't want to pick up something that was a huge chunk of change just to have them drop a new version in July 2020 that would make mine look like Raven / Non-Raven.
Yes the leasing sucks because you're just renting a car for 3 years so you'll end up spending 50k on something you don't own, but on the flip side if you have the funds you might be able to invest wisely and end up with a Model X for 3 years and only spend a total of say 17k.

Now the same can be said with financing a car, make the payments while you make money on what is going to pay for the car, then hopefully sell and make some more money, the choice is yours really. I personally didn't want to deal with selling the car at the end so I went the leasing route, I'm treating the car like a really big cell phone. Great now, great later but I know something better is coming down the track.

 

[Vitaman]

One of the biggest problems with leasing is that you lose flexibility to buy into new technology.
Tesla has demonstrated repeatedly that they have no interest in following a schedule of changes linked to a Calendar.
So if you are half way through your 3 year lease and a desirable improvement comes along.....you are forced to wait.
I leased once....never again.

 

[VikH]

If that bothers you, then lease. Financially it is not the most sound decision for most. But, if you want the latest every 3 years it is the only way to go.

Not necessarily. If the lease terms are not favorable, it may be better to buy/finance and sell after 3 years.

On the flip side, leasing can be more "financially sound" than buying/financing when Tesla lease terms are good and on a heavily discounted inventory car.

Now the same can be said with financing a car, make the payments while you make money on what is going to pay for the car, then hopefully sell and make some more money, the choice is yours really. I personally didn't want to deal with selling the car at the end so I went the leasing route, I'm treating the car like a really big cell phone. Great now, great later but I know something better is coming down the track.

What was the residual % and MF?

 

[msm859]

With all the price reductions in late 2018 and 2019 I am definitely underwater. People buying pre-2019 got screwed on resale value.

Good point. Although it is unlikely there will another drop as dramatic in the next 3 years. I suspect there would have to be a major development in battery costs.

 

[tps5352]

Since there are so many different individual threads dealing with the question, buy versus lease?, I placed a financial analysis I attempted here:

Financial Considerations -- An Important Decision