Lease question

[Anthony17uf]

Hello - wondering if someone can help me track down the following information in regards to a 2019 Model 3 AWD lease.

MSRP - $48,270
Fees - ~$700 + ~$200 = ~$900
Current residual % on 10k mile lease for 36 months - ???
Current money factor (assuming perfect credit score) - ???

Additionally, do all leases have to be executed through Tesla, or can a third party be contracted for this? It seems like Tesla's money factor on the Model 3 is extremely high.


Thanks for the help!

 

[PowerBankT]

I'm not certain on current residual or money factor, however, I can confirm that leases can be executed via third party.
They offered me that option when ordering in the store.

Additionally I'll add that I have near perfect credit (840+) and didn't qualify for the rates that Tesla advertises for 'lease' on the website FWIW.

 

[sqrt]

This is what I got for an SR+:

Car Price $40,190.00
Money Factor 0.002271
It doesn't show the residual % but the lease will cost $21,470.92 over 36 months.

 

[stevegu]

from the finance agreement for our LR AWD, excluding sales tax and title fees, since they vary (and are paid up front in Ohio):

(36 months, 30,000 miles, .25/mile for excess, residual 33,848.50)

Capitalized cost: 49,190.00
Lease payments: 21,717.71 (36@ 603.27)
Acquisition pee: 695.00
Disposition fee: 395.00

So, a total cost of 22,807.71
Residual value 68.8% (partially funded by the $1875 tax credit, otherwise would be 65%, still pretty high IMO)
Annual interest rate (calculated as) approx 5%, so money factor .0020833

Overall, not a great interest rate, but a very high residual value, all of which accrues to our benefit since we can't purchase the car at lease end anyhow.

Also to note, these terms are better than those originally quoted prior to making a formal credit application.

 

[Slumpey326]

This is what I got for an SR+:

Car Price $40,190.00
Money Factor 0.002271
It doesn't show the residual % but the lease will cost $21,470.92 over 36 months.

IMO, that's a lot you are throwing away without the option to buy the car afterwards. What monthly lease payments are you guys paying.

 

[stevegu]

IMO, that's a lot you are throwing away without the option to buy the car afterwards. What monthly lease payments are you guys paying.

In our case, we are paying $603.27/month. For comparison, if we were to purchase at 49,190 and make a payment of the same 603.27 for 36 months, at a reasonable interest such as 3%, the balance at 36 months would be about $31,000 (63% residual, FWIW).

I think this is the comparison, do I think the car will be worth more or less than what would be the balance due after the same term (36 months), compared to having neither asset nor obligation.

To me, this is a fair lease from a dollar and cash-flow standpoint, and probably not giving up much if anything in potential equity at 36 months.

 

[holmgang]

In our case, we are paying $603.27/month. For comparison, if we were to purchase at 49,190 and make a payment of the same 603.27 for 36 months, at a reasonable interest such as 3%, the balance at 36 months would be about $31,000 (63% residual, FWIW).

I think this is the comparison, do I think the car will be worth more or less than what would be the balance due after the same term (36 months), compared to having neither asset nor obligation.

To me, this is a fair lease from a dollar and cash-flow standpoint, and probably not giving up much if anything in potential equity at 36 months.

though you must commit to driving the allotted miles. otherwise unused miles = potential equity lost.

 

[stevegu]

Certainly true, we average about 9000/year, and obviously would have chosen a different lease otherwise. Still, the comparison is as valid as I can construct at this time, do I think my car would be worth more or less than $31,000 in 3 years, and with 27,000 miles. My current guess is that we are not leaving much if anything on the table in this case.

 

[mreynolds767]

Not sure about the lease value but looks like OP is not including the $1200 delivery fee into the MSRP which I assume they will need to do.

 

[sqrt]

I'm paying $530. I prefer to lease because I think that we will see a huge increase in the number EV models over the next 3 tears and I'm not convinced the M3 will hold its value that well.
Also, I need to pick a new car every 3 years to get a new CA HOV sticker.

 

[silentrider21]

I'm paying $403/month on a SR+ and decided to go with a lease instead of financing for two reasons: Three years from now EVs will be much more widespread in the U.S. (they are already seen everywhere here in California) and the potential battery enhancements that could devalue current model 3's. Might be a stretch to stay that battery tech in 3 years will be leaps from where it is now, however I'm convinced that the range of EVs in 2022-2023 will be much longer

 

[Knightshade]

Eh, 2020 model EVs from others are just barely catching up to where Tesla was in like 2012.

They're typically coming in with 25-50% less range or 25-50% more cost (or both in the Porsche example!) compared to Teslas current cars.

I'm less convinced than you guys seem to be that the competition will be genuinely competitive in 3 years enough to majorly ding Tesla resale.

 

[silentrider21]

Eh, 2020 model EVs from others are just barely catching up to where Tesla was in like 2012.

They're typically coming in with 25-50% less range or 25-50% more cost (or both in the Porsche example!) compared to Teslas current cars.

I'm less convinced than you guys seem to be that the competition will be genuinely competitive in 3 years enough to majorly ding Tesla resale.

In the back of my mind I'm just thinking I'll pick up a Model Y at the end of three years anyways lol

 

[stealthblack]

from the finance agreement for our LR AWD, excluding sales tax and title fees, since they vary (and are paid up front in Ohio):

(36 months, 30,000 miles, .25/mile for excess, residual 33,848.50)

Capitalized cost: 49,190.00
Lease payments: 21,717.71 (36@ 603.27)
Acquisition pee: 695.00
Disposition fee: 395.00

So, a total cost of 22,807.71
Residual value 68.8% (partially funded by the $1875 tax credit, otherwise would be 65%, still pretty high IMO)
Annual interest rate (calculated as) approx 5%, so money factor .0020833

Overall, not a great interest rate, but a very high residual value, all of which accrues to our benefit since we can't purchase the car at lease end anyhow.

Also to note, these terms are better than those originally quoted prior to making a formal credit application.

I've never leased before, but when i look at the numbers i always add the initial down payment to the total cost of the lease. Does that not factor in to your calculation? I'll be picking one up Tuesday, and i might have them look at what lease numbers i can qualify for.

 

[stevegu]

I've never leased before, but when i look at the numbers i always add the initial down payment to the total cost of the lease. Does that not factor in to your calculation? I'll be picking one up Tuesday, and i might have them look at what lease numbers i can qualify for.

So, I paid the $2500 deposit, and a shade over $500 at delivery.

That $3000 covered sales tax and registration (noted as excluded, above), the first month's lease payment (included in cost calculation) and the $695 acquisition fee (noted as added, above). The actual cap cost reduction Not included in my figures was $.14. The $395 disposition fee was also added above.

Unless I am missing something (certainly possible) I think those are all my costs except the tax and registration, which obviously vary with jurisdiction.

 

[stealthblack]

So, I paid the $2500 deposit, and a shade over $500 at delivery.

That $3000 covered sales tax and registration (noted as excluded, above), the first month's lease payment (included in cost calculation) and the $695 acquisition fee (noted as added, above). The actual cap cost reduction Not included in my figures was $.14. The $395 disposition fee was also added above.

Unless I am missing something (certainly possible) I think those are all my costs except the tax and registration, which obviously vary with jurisdiction.

Thanks for clarifying the due at signing cost. The SA showed me my due at signing would be $4694 for a $500/month lease; which i thought was a high up front cost for just taxes and fees (no sales tax in NJ). So I figured a chunk of that was to lower the monthly. She was only using the web calculator so i don't know exactly what my approved terms would've been

 

[stevegu]

Thanks for clarifying the due at signing cost. The SA showed me my due at signing would be $4694 for a $500/month lease; which i thought was a high up front cost for just taxes and fees (no sales tax in NJ). So I figured a chunk of that was to lower the monthly. She was only using the web calculator so i don't know exactly what my approved terms would've been

Since I am not sure what is your original price there is no point in trying to guess the rate or residual, but if your lease is structured like ours the up front payment would include the $695 acquisition fee, the $500 first lease payment, sales tax (0), and title/etc fees (say, $100?).

That would suggest a down payment credited to cap reduction of about $3400 which would approximate $94/month if yours is a 36-month lease..

As for the actual parameters, your sales advisor should easily supply the interest rate/money factor and applicable residual. Also to note that since you have not applied for credit and been sent a lease agreement those factors can change, in our case they improved.

 

[MrG_NY]

LR-AWD $584.00 month 15k a yr.