Lease deals at the moment

[DaveW]

So I persume with leasing there is no chance of ownership at the end of the deal?

We keep our cars for a while, the 3 is for my wife and she changes car every 8 years, our X wouldn't be changed till the motor/battery warranty runs out in Oct 2025, so unless the 3 turns out to be a dud we'll not be wanting to swap out in 2-3 years.

In our situation I just cannot see how leasing would work, at least with PCP there is an option to buy at the end.

Looking at the figures been quoted, assuming lease rates in 2 years time stay the same after 4 years we would have spent £30-35k on lease payments with no prospect of ownership? And at 6 years the lease payments would have nearly fully paid for a P Model 3, but staying with lease would leave us with no car?

Generally no, but there are sometimes exceptions or getting the car bought in someone else’s name, maybe your name if the lease is in your wife’s name.

Other alternative int eh absence of PCP is the PCH with balloon at the end, but you’d need to see if the numbers worked out in the end for you, as it could end up being an expensive option.

Magnitude offer the PCH with balloon and you can lower the GFV/balloon (which raises the monthlies) if you wanted to go down that route, 6.9% APR though. Not affiliated with them in any way, had a quote from them, but have decided to go down the lease route

 

[DaveW]

Been working through lease quotes trying to get everything in place (although I suspect I have quite the wait as I only placed the order this week).

Thought the quotes might be of interest to you guys, it's all based on a Black Performance with the Performance Pack.

I was waiting for Fleetsauce to respond before uploading, but I've given up waiting (they use the same funder as Drive Electric (Lex Autolease), so the prices were only £10 or so different per month when I was getting quotes on the P3-).

I've gone with OctopusEV in the end with the 12,000 miles per year deal over 4 years. The 10,000 was cheaper, but then I'd have to have at least £1,100 assuming I do my normal miles over the term.

So £5,513 down, £612 a month, expecting to owe them around £572 at the end of it due to excess millage.

Hope that helps someone, if you want any info, contact details etc.. let me know

 

[Peteski]

So I persume with leasing there is no chance of ownership at the end of the deal?

We keep our cars for a while, the 3 is for my wife and she changes car every 8 years, our X wouldn't be changed till the motor/battery warranty runs out in Oct 2025, so unless the 3 turns out to be a dud we'll not be wanting to swap out in 2-3 years.

In our situation I just cannot see how leasing would work, at least with PCP there is an option to buy at the end.

Looking at the figures been quoted, assuming lease rates in 2 years time stay the same after 4 years we would have spent £30-35k on lease payments with no prospect of ownership? And at 6 years the lease payments would have nearly fully paid for a P Model 3, but staying with lease would leave us with no car?

If you are looking at 8 years ownership, then buying outright will always be the cheapest route overall. Or Tesla HP at 4.9% is not too bad if you want to spread the cost out over 3, 4 or 5 years (for say an additional cost of around £3-5k in finance depending on term length and deposit). Once the loan is paid off, you are then plain sailing for the remainder of the 8 years, with a small residual bonus at the end. Leasing is for relatively short term ownership and generally works well for business use.

 

[zayn]

also signed up for with octopusEV on a blue performance model 3 with aeros.

Have sent over a few referrals including myself so if anyone wants to PM me and mention my name to Gurjeet director at octopusEV

Thank you

 

[zayn]

should also have mentioned not all PCH deals end at end of term. depending on funder there is always option to extend for another year end of deal and there is after that an option to buy , but all is dependent on the funder

 

[gangzoom]

I'm leasing due to my company car allowance rules, i have to have a car no older than 4 years old so works out better for me. Also with leasing you do get a few additions than with PCP such as free road tax for the lease duration and roadside assistance free for the same.

That does make sense as a company car, is that why most lease deals exclude VAT because of not having to pay it??!!

From personal ownership point of view I still cannot see any that offers better value than buying outright - new or used.

Am going to wait for abit to see how inventory prices settle on the 3.

 

[davidmc]

That does make sense as a company car, is that why most lease deals exclude VAT because of not having to pay it??!!

From personal ownership point of view I still cannot see any that offers better value than buying outright - new or used.

Am going to wait for abit to see how inventory prices settle on the 3.

My lease is personal and includes VAT as I get a car allowance paid to me on top of my salary.

Your right in saying that if a business leased the car and I had it as a company car, the company can claim back the VAT (100% in the first year if I recall on a EV) and I would be taxed 40% on 16% of the value of the car in BIK reducing to 2% of value in the second onwards.

For Tax reasons this M3 SRP is working out about the same as a ford focus Inc company fuel as a company car. The Government are massively increasing BIK % on ICE cars! An Audi A3 is taxed at 40% on 27% of the value of the car plus 27% value of £24,000 for company fuel card!!

All above assuming you are in the 40% tax bracket

 

[Peteski]

From personal ownership point of view I still cannot see any that offers better value than buying outright - new or used.

The only time I thought finance was perhaps better value than outright purchase was with the 1.5% APR PCP deals and 50% guaranteed 4 year residuals on Model S/X. And that was mainly for insurance against excessive depreciation. At current finance/lease deal prices then outright purchase is going to be ultimately cheaper for long term ownership if you can afford the upfront cost.

Personally for my M3 I'm thinking of taking the 4.9% HP option through Tesla with a big deposit (say £20k) and a relatively short 3 year term to keep the finance cost low. Or I might well just buy it outright depending on sale of a few other assets we have cash tied up in.

 

[WannabeOwner]

I might well just buy it outright

Me too, that's where I am at with Finance over 4% ... at 1.5% or anything else "paltry" I'll take the loan and put my own money to work

 

[Peteski]

Me too, that's where I am at with Finance over 4% ... at 1.5% or anything else "paltry" I'll take the loan and put my own money to work

Yeah, I'm not up for paying excessive finance costs either. Soon makes a £50K car into a £60k car in the end! I did some calculations below on the Tesla HP via Blackhorse (all at 4.9% APR). Not too bad if you keep the finance term to 3 years with a healthy deposit, but can still add £6k to the cost if you stretch it over 5 years with minimum deposit.

5 years
deposit £6000
Monthly £861
Total finance cost £5803

4 years
deposit £6000
Monthly £1051
Total finance cost £4626

4 years
deposit £10000
Monthly £960
Total finance cost £4222

4 years
deposit £15000
Monthly £845
Total finance cost £3717

4 years
deposit £20000
Monthly £730
Total finance cost £3213

3 years
deposit £10000
Monthly £1250
Total finance cost £3164

3 years
deposit £15000
Monthly £1100
Total finance cost £2786

3 years
deposit £20000
Monthly £951
Total finance cost £2408

 

[EVMeister]

What exact configuration is the above for? Looks to be for a Performance Model 3 with the Performance Pack and FSD?

 

[Peteski]

What exact configuration is the above for? Looks to be for a Performance Model 3 with the Performance Pack and FSD?

Above finance is for a white/white Performance Model 3 with basic AP, standard 18" wheels etc. Cash price £51,840

 

[gangzoom]

5 years
deposit £6000
Monthly £861
Total finance cost £5803

Thanks for doing the numbers and shows ultimately how expensive the Model 3 is.

£1000/month extra payment on our mortgage for 5 years will mean we'll be mortgage free in a little over 7 years versus 13 years, generating an saving of over £50k in mortgage interest payments even at a low APR of 2.25%.

For us the 3 will be the 'second' car to complement the X, and as much as I love how the 3 looks spending that kind of money on one to do barely 6k a year when we still have a outstanding mortgage debt is just financial madness.

We will wait I think to see second hand prices fall over the next couple of years before getting a 3.

 

[EVMeister]

Thanks for doing the numbers and shows ultimately how expensive the Model 3 is.

£1000/month extra payment on our mortgage for 5 years will mean we'll be mortgage free in a little over 7 years versus 13 years, generating an saving of over £50k in mortgage interest payments even at a low APR of 2.25%.

For us the 3 will be the 'second' car to complement the X, and as much as I love how the 3 looks spending that kind of money on one to do barely 6k a year when we still have a outstanding mortgage debt is just financial madness.

We will wait I think to see second hand prices fall over the next couple of years before getting a 3.

Although that is, as Peteski said, a Performance Model 3 with Pearl White paint and white interior. £51,840 cash price. The figures aren't so bad for an SR+. Although it's good that you're thinking about it in this sort of way and thinking about the broader financial impact vs. immediate desire to have the car.

 

[MrBadger]

Thanks for doing the numbers and shows ultimately how expensive the Model 3 is.

£1000/month extra payment on our mortgage for 5 years will mean we'll be mortgage free in a little over 7 years versus 13 years, generating an saving of over £50k in mortgage interest payments even at a low APR of 2.25%.

And once you paid your mortgage off, look at how much £1000/month benefits your pension age...

 

[gangzoom]

And once you paid your mortgage off, look at how much £1000/month benefits your pension age...

Luckily am in the position where I think I'll hit the tax free pension limit way before retirement, so topping the the pension wouldn't be a good idea.

But your point is good, hence we have a X, but £1000/month on a small saloon which wouldnt get used beyond my wifes daily commute is pushing it!!

 

[WannabeOwner]

£1000/month extra payment on our mortgage for 5 years will mean we'll be mortgage free in a little over 7 years versus 13 years, generating an saving of over £50k in mortgage interest payments even at a low APR of 2.25%.

Ermmm ... doesn't your maths assume a residual value of M3 is £0?

And doesn't take into account that you need a second car anyway ... so if the 2nd car is, say, a monthly payment of £500 for an ICE vs £1,000 for EV then its £500 a month extra, and assuming twice the sticker-price than twice the residual too, so perhaps only a £250 / month saving on mortgage and then £60 a month saved on fuel ...

... and maybe 2nd car could be SR+ rather than Performance ... that's another £200 or so off the repayment ...

... I expect some Man Maths getting in the way now

Not wanting to encourage financial imprudence but all cars are deprecating assets and it makes no sense to spend any money on them, on the face of it ...

For us the 3 will be the 'second' car to complement the X ... spending that kind of money on one to do barely 6k a year

If the max journey range is short I'd look at a 2nd hand Leaf. Many of those change hands cheap-as-chips.

 

[gangzoom]

Ermmm ... doesn't your maths assume a residual value of M3 is £0?

And doesn't take into account that you need a second car anyway ...

The problem is our second car is a Lexus IS300H, which is fully owned from new with no on going finance costs.

It does 6k a year at a true 45mpg all year round so only £767 a year in fuel costs. VED is £10 a year, service/MOT is £250, its a Lexus/Toyota so I don't expected it to ever breakdown, and at 26K still on original tyres with 3mm of tread left.

If you add all that up, even including tyres on going maintenance/out of pocket costs is about £80/month, its cheaper to keep my old Leaf on a £200/month no deposit 0% APR deal!!

With even a SR+ Model 3 just the VED for the first 5 years is nearly half that amount!!!

At over 4 years old the Lexus is also deprecating very slowly, which I can understand given how cheap it is to run as a used car without the risk of been been fined in ULEZs/turbo worries/DPF costs, and I can see why all Taxi drivers seem to be driving Prius these days.

We had a SR+ on order which I cancelled after doing the maths, sadly it seems like for us our choice of a economical/reliable/non diesel car from a few years ago has made the man maths almost impossible to go fully electric on the driveway!!

 

[Peteski]

The problem is our second car is a Lexus IS300H, which is fully owned from new with no on going finance costs.

It does 6k a year at a true 45mpg all year round so only £767 a year in fuel costs. VED is £10 a year, service/MOT is £250, its a Lexus/Toyota so I don't expected it to ever breakdown, and at 26K still on original tyres with 3mm of tread left.

If you add all that up, even including tyres on going maintenance/out of pocket costs is about £80/month, its cheaper to keep my old Leaf on a £200/month no deposit 0% APR deal!!

With even a SR+ Model 3 just the VED for the first 5 years is nearly half that amount!!!

At over 4 years old the Lexus is also deprecating very slowly, which I can understand given how cheap it is to run as a used car without the risk of been been fined in ULEZs/turbo worries/DPF costs, and I can see why all Taxi drivers seem to be driving Prius these days.

We had a SR+ on order which I cancelled after doing the maths, sadly it seems like for us our choice of a economical/reliable/non diesel car from a few years ago has made the man maths almost impossible to go fully electric on the driveway!!

But let's face it, you and your mrs are thoroughly bored to death with the Lexus and at some point you will have to replace it anyway. Just a question of when, not if.

I made the mistake once of keeping a Volvo V50 for 10 years and it eventually turned into a worthless money-pit to keep going, plus it was dire to drive! Wish I'd sold it when it was about 4 years old for a decent deposit on something newer/better. Having the same thoughts now on our 4 year old Nissan Qashqai. It's still worth just over £10k (was £23k new, discounted). Do we keep it for another few years out of warranty or trade it now for a new Model 3? Also considered chopping it in for a used BMW i3, which would work if we threw £5-10k into the pot. That would probably be the sensible thing to do for a second low mileage EV.

Sorry, digressing from lease deals a bit here!

 

[WannabeOwner]

But let's face it, you and your mrs are thoroughly bored to death with the Lexus

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