Has anyone asked about residual value changing?

[Lhshockey24]

Given the recent price reductions across the board, I was wondering if anyone has reached out to Tesla or Tesla finance to ask about changing their end of lease buyout price. We have a 2017 Model X P100D leased in December of 2017. The residual value on 1/1/2021 is $98,000... Obviously there is no way in 2021 a ~3.5 year old X with over 40k miles will be able to demand that value.

I reached out to Tesla sales and finance asking if they would be willing to negotiate this for either an early buyout, trade in, or anything else creative. Has anyone else tried to discuss this with them? I imagine there will be some late 2016 AP2 cars with leases coming up at the end of the year. I expect many to be in my position by the end of 2020...

 

[jboy210]

Interesting. No plans to buyout my lease on my 2018 X75, but interested to hear if they cut the residual.

We leased instead of buying knowing that in 3 years the EV landscape and prices will have changed dramatically.

 

[Lhshockey24]

Interesting. No plans to buyout my lease on my 2018 X75, but interested to hear if they cut the residual.

We leased instead of buying knowing that in 3 years the EV landscape and prices will have changed dramatically.

Exactly our approach and I’m so glad we did. We would be $40k upside down on a loan otherwise...

 

[trident]

I leased my 2019 S just because the landscape will be very different in three years. The Mercedes SUV looks promising when my lease is up.

 

[ewoodrick]

Exactly our approach and I’m so glad we did. We would be $40k upside down on a loan otherwise...

I'm not quite sure if any of the cars dropped in price by $40k, especially once adding the $7500 rebate.
The only differentials that I've seen has been at the absolute max, $10k, but even then, Tesla cut the folks a $5k check.

Does a EV with a $7500 tax credit devalue by $7500 when it walks off the lot? Yes.
Does any vehicle devalue when it walks off the lot? Yes.
Can you make back more than 100% of a new car purchase? ONLY in rare situations where there is extraordinary demand for the vehicle and then you'd definitely understand that if it isn't a limited edition vehicle, the price will suffer dramatically.

If you leased it, then YOU decided that you didn't want to accept the risk of a purchase. It is up to the owner to decide what they want to do with the off-lease vehicle.

I'm not sure why you don't think that the residual value will be that high because of price drops. I just priced a decked out Model S at $146,000. $98,000 is less than a 40% depreciation.

 

[Lhshockey24]

I'm not quite sure if any of the cars dropped in price by $40k, especially once adding the $7500 rebate.
The only differentials that I've seen has been at the absolute max, $10k, but even then, Tesla cut the folks a $5k check.

Does a EV with a $7500 tax credit devalue by $7500 when it walks off the lot? Yes.
Does any vehicle devalue when it walks off the lot? Yes.
Can you make back more than 100% of a new car purchase? ONLY in rare situations where there is extraordinary demand for the vehicle and then you'd definitely understand that if it isn't a limited edition vehicle, the price will suffer dramatically.

If you leased it, then YOU decided that you didn't want to accept the risk of a purchase. It is up to the owner to decide what they want to do with the off-lease vehicle.

I'm not sure why you don't think that the residual value will be that high because of price drops. I just priced a decked out Model S at $146,000. $98,000 is less than a 40% depreciation.

I think you're TOTALLY missing the point...

You might be unaware that a fully loaded Model X P100D back in mid-2017 was priced close to $170k. Now we're at about $130k for the same build. I may have been off a few grand, but the same point remains. Tesla will not be able to take my car on January 1st of 2021 and put it back in inventory for $98k if I choose not to buy it out. So, my point is still valid - perhaps they would cut a deal knowing that when they go to resell the car they won't get more than $80k for it...(based on what I see off lease P90Ds going for now).

I didn't post this thread for purposes of debating leasing or debating residual values. I'm simply curious if anyone else who will be coming off a lease in the next year or so has thought about this.

 

[rjdoc74]

Lease is a contract between you and a bank signed by both parties. It has nothing to do with current car price. They won’t change the residual. I guarantee it.

 

[Lhshockey24]

Lease is a contract between you and a bank signed by both parties. It has nothing to do with current car price. They won’t change the residual. I guarantee it.

Except two things, 1. The bank is Tesla Finance so who knows what they do/won’t do. Even US bank has taken $7,500 off residual for early buyouts before because 2. Changing the residual is one thing, negotiating a buyout is different.

 

[rjdoc74]

Except two things, 1. The bank is Tesla Finance so who knows what they do/won’t do. Even US bank has taken $7,500 off residual for early buyouts before because 2. Changing the residual is one thing, negotiating a buyout is different.

#2 is true for sure. Over the years, I dealt with companies that would negotiate and others that would absolutely not. Let’s hope Tesla finance is the former.

 

[outie]

Don’t forget to add back 2% for the recent price increase.

 

[Chopr147]

My 2016 S 75D lease expires in August. I am thinking of purchasing at just under 50K residual. The market appears to be $50k-$62k thru Tesla for a refresh S depending on mileage. I have been looking thru several sites. Makes sense to keep my S which is different than most. Or spend another 15-20k for a used 90D. Or 30k more for a Long Range in stock test rider. So yea, to each his own but I may be buying out my lease. In retrospect, I should have purchased it in 2016. But Tesla was changing, upgrading etc... so much at the time I decided to lease. Love the car and have taken good care of it so.............."the Pope" stays with me.........for now. It'll be a game-time decision