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Just ordered MX75D, yet another study at Purchase vs Lease

Discussion in 'Model X: Ordering, Production, Delivery' started by rltsx, May 8, 2017.

  1. rltsx

    rltsx Member

    Joined:
    May 8, 2017
    Messages:
    13
    Location:
    Orange County, CA
    Hello All, after years of lurking (ever since the Model S release), I finally put down my deposit on my first Tesla, a MX75D.
    My build includes:
    Pearl white exterior
    White interior with carbon fiber
    6 Seat
    EAP
    Tow
    MSRP: $97500

    I've never leased a car before, much less a car pushing pass $100K after taxes. I would like to keep this for 5 years or longer, but I do have real concerns regarding the long term reliability of the X and (less so) Tesla company as whole, but that's for another day. My buddy who has an Oct/2016 build MX90D told me I am brave for purchasing it, as he's doing the two year lease since he's not sure how well the X, especially FWD, will hold up over time.

    So my question is, does Leasing the car, and potentially walking away after 3 years if the car becomes too problematic, make any financial sense at all? Here are the numbers:
    MSRP: 96500 before taxes and fees

    Purchase:
    $17700 down (including deposit)
    1.49% 72 months loan, $1262 per month
    End of year 3 of ownership cost $55632 (after -$7500 fed credit), amount owed on loan $44394

    Lease:
    $5682 down (including deposit)
    $1509 per month with 15K mi allowance
    End of 3 year lease cost $60000 (whoa), walk away with no risk but no equity

    So it costs $4500 more after 3 years to lease than to purchase. PLUS there's 15K mi limit. IF the car is problematic after 3 years, I can still sell the car for more than (likely) the $44393 that I owe, and still walk away, while paying $4500 less during the 3 year purchase vs lease.

    I hope my math was correct, as I said I've never leased before. It would be great if all you Tesla and lease vs purchase experts can chime in.

    Thank you all in advance. Counting down the days!
     
  2. MXFan

    MXFan Member

    Joined:
    Mar 1, 2017
    Messages:
    101
    Location:
    Northern Virginia
    Think of it this way:

    Do two consecutive 3-year leases, total cost $120,000 and you have no car.

    Purchase after 72 months (same 6 years) and you own a 6-year old Tesla (with latest software updates) outright for only $91,000 (after fed credit).
     
  3. rltsx

    rltsx Member

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    May 8, 2017
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    Location:
    Orange County, CA
    Interesting perspective and makes a lot of sense, thanks!
     
  4. MXWing

    MXWing Active Member

    Joined:
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    Messages:
    1,317
    Location:
    Orange County, CA
    Is it actually smart to lease a Tesla?

    TLDR; Tesla leases are stupid expensive. I think this is a good buy in period anyhow. Model 3 is going to use the same AP hardware that still has a very long time to ramp up so you will enjoy beyond the 3 year lease you would have paid.

    1.) You drive over the miles you lose. You want to drive under the miles you lose on lease.
    2.) It's Orange County. You will want to tint all the windows, probably the windshield (I did). You lose on lease.
    3.) Thinking about protecting the paint with some film wrap to keep it looking brand new. You lose big time on lease.

    I might be a little worried about owning one the first 1000 FWD cars but it ought to be mature now. Think about how often they are open and closed aggregated across all Tesla show rooms on a daily basis.
     
  5. Amp Dup

    Amp Dup Member

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    Messages:
    65
    Location:
    Orange County, California
    Every few years I have the same questions. I have used this website: The 2017 Car Lease Guide - LeaseGuide.com
    It is very thorough - everything you ever wanted to know about auto leasing and more. There may be a fee to get everything.

    I have made out on several leases: I'd buy the vehicle at the end of the lease and then sell it for more than I paid.
    I had one Infiniti that got nearly totaled. $22K to repair it but the insurance company paid to have it put back together. At the end of the lease I just turned it in. Adios!
     
  6. EV bud

    EV bud Member

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    Apr 23, 2017
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    Location:
    SF
    I'm in a similar boat after putting my deposit down. OP, what did you end up deciding? Lease vs. Loan?
     
  7. DrivingRockies

    Joined:
    Aug 21, 2016
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    US
    It's a secondary car for me. I've had it since late Oct '16 and I have nearly 12k miles on it. I look for excuses to drive it. It's great. I would die with the mileage restrictions. Especially if it was my primary car.
     
  8. rltsx

    rltsx Member

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    I'm going to stick with finance. At the 1.49% interest rate compares to roughly 5% interest on a lease, it really is a no brainer, as my calculation shows above.
     
  9. rltsx

    rltsx Member

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    True, I drive about 20K miles a year on my commute. We have an Odyssey and a 911 that can now semi-retire to weekend car status. I'm sure we'll find excuses to get in the X as well.
     
  10. NikeWings

    NikeWings Active Member

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    Don't kid about it.......only 6 months later and the X weasled its way into my garage. :D
     
  11. Amp Dup

    Amp Dup Member

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    Hey, me too! I hadn't had a car in the garage since I sold my Corvette maybe 15 years ago. It was an enormous challenge but the X is in there now.
     
    • Love x 1
  12. EV bud

    EV bud Member

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    Nice, I also decided to finance vs. lease. Post #4 helped as well.
     

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