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Hi all - Need some Tesla advice & have a few questions...

Should set the scene first. Have had a Porsche Macan S for a couple of years on a PCP & with the used car market (and Porsche residuals), Porsche will now not stop trying to buy the thing off me - It's in a significant amount of positive equity. Anyway; I want to go electric with my next car and the Taycan doesn't cut it with a pram. So my eyes turned to Tesla. My initial question:

I'm not sure that buying an EV outright at the moment is a sensible move & so feel like leasing might be the best bet. If I do that then I'd be looking at a Model 3 / Model Y (long range if II opted for the 3). Is it best to do everything via Tesla or use a Third Party as many do? If so, where should I look?
 

MrT3

Active Member
Jun 26, 2021
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If you have a work salary sacrifice option then definitely go with that for the tax saving + BIK is very low on an EV.

Tesla lease is expensive compared to what is available via other lease companies. Check the cost of included maintenance/tyres - many charge quite a premium, based on their non-EV charging model but given that the Tesla doesn't need regular servicing you would be better to pay for that separately as and when required.
 
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If you have a work salary sacrifice option then definitely go with that for the tax saving + BIK is very low on an EV.

Tesla lease is expensive compared to what is available via other lease companies. Check the cost of included maintenance/tyres - many charge quite a premium, based on their non-EV charging model but given that the Tesla doesn't need regular servicing you would be better to pay for that separately as and when required.
Interesting... I don't *think* my Firm offers the salary sacrifice option. That being said; my wife is setting up her own business so not sure what could be done there.

Which are the best leasing companies? I know leasing not generally a great way to do things but I don't think residuals will be as strong as they are now in 4 years' time. That bubble is being driven by the general lack of availability on new cars which, you would like to think, would be fixed in 4 years.
 

MrT3

Active Member
Jun 26, 2021
1,928
1,320
UK
Interesting... I don't *think* my Firm offers the salary sacrifice option. That being said; my wife is setting up her own business so not sure what could be done there.
I believe you can offset the full price of the vehicle against pre-tax profits in the first year so worth looking into.

Not sure about which are the best lease companies, hopefully others can help. You need to understand their policies around terminating early - unlike PCP there aren't laws they need to follow around unfair charges so some are definitely worse than others.

I agree residuals won't be as strong as they are today but the lease prices seem to take that into account.
 

GRiLLA

Active Member
Jul 5, 2020
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2,521
UK
Best read this Sticky thread about Model 3 leasing ..

 
Should set the scene first. Have had a Porsche Macan S for a couple of years on a PCP & with the used car market (and Porsche residuals), Porsche will now not stop trying to buy the thing off me - It's in a significant amount of positive equity. Anyway; I want to go electric with my next car and the Taycan doesn't cut it with a pram. So my eyes turned to Tesla. My initial question:

I'm not sure that buying an EV outright at the moment is a sensible move & so feel like leasing might be the best bet. If I do that then I'd be looking at a Model 3 / Model Y (long range if II opted for the 3). Is it best to do everything via Tesla or use a Third Party as many do? If so, where should I look?
Hi and welcome!

Interesting about your views on depreciation. If talking ICE then yes, depreciation will be concerning, but as EV is the future plus the general new car shortage today, I predict a lack of 1/2/3 (insert your ownership term here) Year old cars when you come to sell. Might not be what you’ve seen on the Macan, but I don’t think an EV will lose much.
 

M3noob

Active Member
Supporting Member
Aug 22, 2019
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Beyond the pale
I bought mine outright so I’m not much help on other options. It’s 18 months old and worth virtually what I paid.
if you plan to keep it for just a few years, lease etc may be the best way. I’m keeping mine longer term.
if you’ve looking for a Y then short term on a 3 now makes sense.
Both are a good choice! Good luck.

Snap
 
I had a similar dilemma in terms of purchase v lease. In the end I have leased a M3LR. The reason being that I think in 3-4 years time the market will be flooded with Model 3s and that battery and charging tech will have moved on. I expect in 4 years time their will be a massive choice of EVs, available from every manufacturer.

At that point, I'm not sure that cars with sub-300 miles real-world range and costing upwards of £25-30k will be hugely popular. That amount of leased Teslas due to low BIK and salary sacrifice schemes alone that will be released into 2nd hand market in 4 years will surely see a drop in value. I don't like keeping a car for more than 4 years as I tend to get bored! So a lease works well for me (obviously has it's downsides with no ownership, zero equity, leasing companies, etc).
 

MrT3

Active Member
Jun 26, 2021
1,928
1,320
UK
At that point, I'm not sure that cars with sub-300 miles real-world range and costing upwards of £25-30k will be hugely popular. That amount of leased Teslas due to low BIK and salary sacrifice schemes alone that will be released into 2nd hand market in 4 years will surely see a drop in value. I don't like keeping a car for more than 4 years as I tend to get bored! So a lease works well for me (obviously has it's downsides with no ownership, zero equity, leasing companies, etc)
I don't disagree with this but the lease payments, especially direct from Tesla, seem to take all that into account - you are almost guaranteed to be in the worst case position whereas there is upside potential if you purchase outright and values don't drop as much.

e.g. an LR on a 4 year/10k mile PCH will end up costing you £ 31,800 - I'm sure the value of a 4 year old LR will be greater than £ 16,690.
 
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The reason being that I think in 3-4 years time the market will be flooded with Model 3s and that battery and charging tech will have moved on. I expect in 4 years time their will be a massive choice of EVs, available from every manufacturer.

I thought about the battery tech causing bigger depreciation, but then I realised that a) Improvements in the last 3-4 years haven't changed ranges by an order of magnitude and b) any technology announced now may only just be making its way into new cars in 3-4 years time so will not alter second hand prices for another 3-4 years after that. So until any huge leaps in technology actually make it to the manufacturing stage I think you're safe.

I think the biggest risk is, as you say, the considerably larger choice now that so many other EVs are available, but I tend to think that's more of a problem for the MY - there aren't a lot of mid-size saloons yet.
 

GRiLLA

Active Member
Jul 5, 2020
2,256
2,521
UK
All these different financing options are designed to give you a false impression that you are getting something more than a loan. There's no good reason for a PCP not to low ball the final payment figure, you'll be happy that you have made a gain after the term, no one loses.

After 24 months / 20K miles a LR final payment is £22316, my 2 yo car is valued by WBAC as £42K. The credit cost £3K during that term.

If you need the financing then it's a reasonable deal, but if you don't you spent £3K insuring against a risk that depreciation doubles.
 

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