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Last minute switch to Lease (not a lease/finance thread)

Discussion in 'Model S' started by Chopr147, Aug 11, 2016.

  1. Chopr147

    Chopr147 Active Member

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    Wantagh, NY
    So I am expecting delivery any day now, waiting on the call. Yesterday I applied for the lease after the last 2 months dead set on financing the car. I applied for and was approved on a $65,000 72 mo. loan at 1.75%. My wife's Lexus has always been a lease and she likes getting a new car every 3 years. Myself, I have had 2 personal cars in the last 19 years. That's it! Obviously not leases. (Corvette was a part timer and does not count) I like to own my cars for many reasons.
    1) I like to accessorize :) and make it my own.
    2) I always considered leases as not a great financial decision. (Arguable)
    3) Paying a car off and not having a car loan is so nice.
    So I had to re-apply due to the 30 day expiration. Spoke with the Alliant rep. who said "approved but with a 4.35% rate.
    WTH! Now I'm not knocking Alliant. Apparently my credit score went down due to an $11.00 over the limit Visa card. Took care of that but the credit will not reflect it until next month. I am NOT taking a 4.35% loan. It is over $5000 more than the 1.75% over the term.
    Approved for the lease which is a lower monthly payment, much lower because i am using the $15,000 for my trade in as a down payment. I know, many say put down as little as possible on a lease. But it's the trade in and I do not want to get into the re-sale of it. Too lazy :)
    I now feel like a load has been taken off my shoulders and wonder why I did not lease to begin with. My kneejerk reaction to buying I guess. At this time my plan is to drive only a Tesla for the rest of my life and now I have the freedom to decide on a Model 3 or S in 3 years from now. With better AP and other improvements made in the next 3 years.
    I am just venting I guess but yesterday I was stressed over this. I was planning on Xpel for another $3000 and now I will not do that. I still want to own and probably will do that 3 years from now with the ability to save monthly towards the next Tesla. I am planning on retiring in 3 years and that will be my retirement present to myself :)
    I plan to use the savings also towards cleaning up my debt/income ratio which is a little high right now.
    Now if only that delivery phone call would come :(
     
  2. AndreSF

    AndreSF Member

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    Congrats on upcoming delivery!

    I guess you changed your mind about this one (argued to yourself and won the argument?)... :) "2) I always considered leases as not a great financial decision. (Arguable)"
     
    • Like x 1
  3. WannabeOwner

    WannabeOwner Member

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    Mine too, but I suspect that Technology will leapfrog such that I chop it in for a Quantum Leap version - e,.g. fully autonomous would do it for me. Lease will give you that option, without any worry about trade-in value.
     
  4. CapeOne

    CapeOne Member

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    You should still be able to take at least a portion of the trade-in value in cash (a check from Tesla) instead of having to apply all of it towards the lease.
     
  5. krazineurons

    krazineurons krazineurons

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    I need to apply for loan as well, so can I do it even one day before delivery?
     
  6. Chopr147

    Chopr147 Active Member

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    I was approved within a couple hours on the loan. Same for the lease. So should not be a problem. Another poster here financed 1 day before delivery.
     
  7. pshaffer

    pshaffer Member

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    Do you happen to know where they're getting the scores from and where they draw the line between 1.75 and 4.35 rates? I'll be applying in the next couple of weeks and I really don't want a 4% rate. I haven't ran any CC's over their limits, but I'm also not sure if you're talking about the card limit or some limit that Alliant has.
     
  8. Chopr147

    Chopr147 Active Member

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    Credit score of 740 or above will get you 1.5%. I initially had a 730 score which was the reason for the 1.75%. $11 over the limit on a CC lowered me to 680! So, a lease :)
     
  9. krazineurons

    krazineurons krazineurons

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    They use Equifax for scores.. 730 is the threshold for them to grant 1.49, which I think now has changed to 1.74
     
  10. theslimshadyist

    theslimshadyist NashVegas!

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  11. wyldtek

    wyldtek Member

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    That's great to hear. My Equifax score is consistently in the 740+ range but my Transunion score can vary wildly week to week for some reason.
     

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