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Lease rate questions

Discussion in 'Model S: Ordering, Production, Delivery' started by SUN-day Driver, Feb 11, 2016.

  1. SUN-day Driver

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    Sorry if this has been asked and answered, I searched and couldn't find it (please let me know where if so).

    I bought my Model S in 2013 before there was consumer leasing (business leasing probably started right around when I bought it). I am planning on leasing a new one. I have been building and pricing out my new Model S in the design studio every few months, and each time the monthly lease payment it shows is less than before.

    What are the monthly payments it shows based on? Prime rate hasn't gone down, it was flat for an eternity and then raised a fraction of a percent, so that doesn't explain why the monthly lease payment shown by Tesla has steadily gone down (the cash price of the car has remained the same).

    Also I like the payment rate I see now a lot, but I suspect even if I ordered and put down a deposit today I wouldn't get that payment. When is the monthly payment amount locked in, when the deposit is made, or at delivery, or is there some other time when the lease is finalized and terms become firm?

    Thanks for any info on these questions.
     
  2. MsElectric

    MsElectric Active Member

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    It is based on a set Money Factor. Keep in mind though that they sometimes change this Money Factor for special promotions.

    In December of last year their lease money factor came down to .0016. Not sure what it is now.
     
  3. dgpcolorado

    dgpcolorado Member

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    As of three weeks ago the money factor was 0.0017, which is 4.08%. The other thing that affects the payment is the residual value of the car, which varies with the model and options chosen and can change with Tesla's view of market conditions.

    I don't know when the rate gets locked in on an order; that's a question for Tesla.

    For a PDF of Tesla leasing information:

    Tesla Leasing Highlights
     
  4. SUN-day Driver

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    I always build it with the same options and verify the cash price is the same so I am sure to be comparing the lease payments on exactly the same thing each time. The monthly lease payment shown has gone down by about $60 and now it is less to lease a new one than my loan payment on my 2013 one. So I am very happy about that but I still don't know why the lease has gone down (unless it was a reduction in the Money Factor).

    Thank you for the document, that is very informative!
     
  5. rog

    rog Member

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    Increase of the residual.
     
  6. ahurst

    ahurst Member

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    This ^^
     
  7. mkjayakumar

    mkjayakumar Active Member

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    Which means they are more confident of a higher resale value in 3 years, now than earlier
     
  8. rog

    rog Member

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    They are only confident until the end of March though (at least that's when they say the special offer will expire) :biggrin: I think it's a pure marketing gimmick.
     
  9. davesm

    davesm Member

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  10. SUN-day Driver

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    What special offer do they say ends at the end of March? Where can I find out about that? (Knowing that the lease payments will be more if executed after March would have a huge impact on my plans.)
     
  11. pete8314

    pete8314 Vendor

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    I assume the revised money factor that ultimately influences the lease cost. This is the wording at the bottom of the lease quote:

    lease.png
     
  12. xgentryx

    xgentryx Member

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    My lease approval end of Dec came out to be about $70 more per month than my final paperwork when I took delivery this week. The residual went up about $3k between those two docs.
     
  13. xG35

    xG35 Member

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    When you residual went up, your monthly should be cheaper... what else changed?
     
  14. xgentryx

    xgentryx Member

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    Yep that's what happened. Sorry maybe I didn't write that clearly. Residual went up $3k ish and monthly went down about $70
     
  15. SUN-day Driver

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    Thank you for posting that info. Maybe they change it quarterly but in any case it's very handy to know it will probably change on April 1.

    Thank you for that info, too -- it answers my main question. It seems the figures aren't set in stone until delivery. That being the case, I wonder how many people see the new numbers at delivery, and if they are higher than what they were told before decide not to sign.
     

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