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Lease or Buy
- Thread starter djfdsfskl
- Start date
zoomer0056
Active Member
chatGpt says:
Should I opt for leasing or purchasing a car for a two-year period? The choice between leasing and buying depends on personal circumstances, financial situation, and preferences. Several factors should be considered to make an informed decision.
Should I opt for leasing or purchasing a car for a two-year period? The choice between leasing and buying depends on personal circumstances, financial situation, and preferences. Several factors should be considered to make an informed decision.
- Duration of Use: If you only need the car for two years and don't plan to keep it long-term, leasing may be more suitable. Leases typically have a fixed term, allowing you to return the vehicle at the end without the hassle of selling it.
- Budget: Leasing often requires lower upfront costs and monthly payments compared to buying. If you have a limited budget or prefer lower monthly expenses, leasing could be more affordable. However, keep in mind that you won't own the car at the end of the lease.
- Mileage and Usage Restrictions: Leases often come with mileage limits, and surpassing them can result in extra fees. Consider your expected mileage and whether you're comfortable with any usage restrictions imposed by the lease agreement.
- Ownership and Resale Value: Buying a car grants you ownership and the option to sell or trade it later. If you think you might want to keep the vehicle beyond two years or prefer having an asset, buying might be a better choice. Additionally, ownership allows for modifications and customization, which are typically prohibited with leases.
- Depreciation: Cars generally lose value over time. With a lease, you only pay for the expected depreciation during the lease term. If you buy, you'll experience the full impact of depreciation, which can impact its resale value.
- Maintenance and Repairs: Leased vehicles are usually under warranty, covering the cost of maintenance and repairs. Buying a used car may involve higher potential maintenance expenses, depending on its condition and age.
When you lease the depreciation is factored into your payment. Also, there is an initial payment. You have to decide if these are better than selling in 2 years. I don't think anyone can make that decision for you because no one can accurately predict what Tesla will sell a Model 3 for in 2 years. It could be by then a Tesla has gotten the production process down so much that new one will be considerably cheaper than they are now.
Spot on, I am in the middle of the same decision making progress and leaning in the same direction. right now Tesla is passing on around a 65% residual rate whereas almost every other EV out there is around 50% to 55%. Part of it is the tax credit baked in. So if you are not eligible for tax credit, this makes it alot easier as well.
I personally feel within 2 to 3 years many things will change and we will not have the inflated car prices as we do today. Furthermore, Tesla has been on a trend of lowering prices and there will be a lot more Teslas out there and more lower priced EVs. Passing on the "value" risk to Tesla makes sense. If they are wrong and prices go down even further, you just get to walk away. If tesla let you buy out the lease it would be a lot easier decision.
Then you have to factor in if you are registering the car in the name of the business or yourself, and associated tax benefits.
Definitely a lot of factors. We have our cars under a business, so that creates another set of complexity. Also, I have the option to buy my X at the end of the lease, but will that be a wise move????
Yep. My X was delivered in April 2022. I believe in June 2022 they stopped the option to buy, so I still have that.
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