The disadvantage of owning is if you are like me and like a new car every three years, then you will more or likely be ahead by leasing, as most cars will take a big dip in three years when you go to trade them in. I hate screwing around with trade in anyhow, as you rarely get back what you think it is worth, unless you can do a private sale. Doubt if Tesla continues to hold their value as the completion increases. Could be wrong though.
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Lease prices way too high?
- Thread starter Forensic
- Start date
The disadvantage of owning is if you are like me and like a new car every three years, then you will more or likely be ahead by leasing, as most cars will take a big dip in three years when you go to trade them in. I hate screwing around with trade in anyhow, as you rarely get back what you think it is worth, unless you can do a private sale. Doubt if Tesla continues to hold their value as the completion increases. Could be wrong though.
I think you're right, but I think we're a few years out from that still. Audi and Jag have been discounting their EV's by like $10k to $20k to sell them. Other EV's will likely have battery supply issues for at least the first year as they build up their supply chains. I don't doubt that other auto makers will come out with good EV's that are priced well, have a good charging network to support them, and can hit the prices that Tesla does... but it'll still take a little time. With Tesla basically selling every Model 3 / Y they can make right now, they're not hurting just yet. Maybe this time next year maybe not... they still delivered almost a record amount of Model 3's this last quarter when most car companies saw sales decline by 30% or more. There still is a swell behind wanting to buy a Tesla and they don't really need to lease many right now.
Come to the civilized side of the river. It's pretty great over here. I'm ~30 miles due west of Manhattan and love it - I've got trees and grass and wildlife and peace & quiet, but I can be at Sparks in an hour. About the best of all worlds!
Maybe people need to look at the numbers another way since they seem hung up on the money factor or the 1% rule. I think the finance rate is 2.99%, while others think it's 5.25%. Does it matter?
How about just adding up the payments and comparing which vehicle is more worth that amount?
Looking at a 2020 BMW 330i, w/Convenience Pkg., I see they're offering a lease at $419 a month, but the customer has to put down $2655. When you total the payments, 36 x $419 = $15084. Add in the downpayment of $2655 and you get $17,739, not including fees and sales taxes, etc.
How does the Tesla Model 3 SR+ compare? $506 a month, nothing down, 36 x $506 = $18,216.
That's about $500 more than the BMW, but the actual difference, due to inflation is less, since you don't have to put the $2655 down at closing, like the BMW. Who cares what the money factor is, or whether it meets some 1% rule, the question is would you rather pay $17,739 for 3 years of a 2020 BMW 330i Sedan, base w/Convenience, or $18,216 for 3 years of a 2020 Tesla Model 3, SR+?
How about just adding up the payments and comparing which vehicle is more worth that amount?
Looking at a 2020 BMW 330i, w/Convenience Pkg., I see they're offering a lease at $419 a month, but the customer has to put down $2655. When you total the payments, 36 x $419 = $15084. Add in the downpayment of $2655 and you get $17,739, not including fees and sales taxes, etc.
How does the Tesla Model 3 SR+ compare? $506 a month, nothing down, 36 x $506 = $18,216.
That's about $500 more than the BMW, but the actual difference, due to inflation is less, since you don't have to put the $2655 down at closing, like the BMW. Who cares what the money factor is, or whether it meets some 1% rule, the question is would you rather pay $17,739 for 3 years of a 2020 BMW 330i Sedan, base w/Convenience, or $18,216 for 3 years of a 2020 Tesla Model 3, SR+?
People who lease (myself included) have been "trained to care" about the numbers lol.
Much like everything else Tesla, we have to un-learn some behaviors ...
Reminds me of one of my favorite arcade games!
I see it as people focussing on the trees, and missing the forest.
I agree with your approach, but there are two things to consider. First, the BMW is a $44,500 car and the Tesla is a $38,000 car.
Second, the BMW lease offers a buyout option, allowing you to keep the car if you choose. The Tesla does not.
NY has a $2000 EV discount also. Tesla takes care of that for you, they take it off the final cost of the car.
That's the plan in a few years. Definitely not staying within the 5 boroughs. The new speed cameras placed every 2-3 blocks are reason enough alone to get out of this city.
I'm looking at a broker deal right now for a $46,800 330i xDrive for $367 a month with nothing down. It includes $2k loyalty, but even if you factor that in you're at $422 a month. Plus you have the option to buy-out at the end of the lease.
You're fixated upon the manufacturer's price. It biases your thinking that the BMW is the better vehicle. I own a loaded BMW 330xi, and the only thing I'd like on that car moved to my Model 3 are the red leather sport seats. Actually, when the BMW gets retired, I'm going to have the front seats removed and mounted so that I can use them as office chairs.
The point of my exercise was to remove the manufacturer's list price from biasing your choice. I guess it didn't work.
As for the buyout option, that's definitely worth something, so keep it in mind. I did lease my BMW before buying it after the lease expired.
Good point, MSRP is a common metric for evaluating lease prices but not the only way to compare similar cars. If you're setting MSRP aside, why pick BMW and not, say, a Toyota Camry to make the comparison?
Mattopotamus
Member
I've never put any money down on a lease, ever. I would throw the downpayment out of the equation.
