lease rates lowered?

[ChadFeldheimer]

My (Illinois) lease has an early termination clause.

The gist of it is that you pay:

(1) an early termination penalty (1-2.5 months worth of lease payments, depending on how much time is left on the lease)

and

(2) the difference between the wholesale value of the car (or the insurance payout if you are terminating the lease due to a total loss) and the remaining loan capital

You might ask your salesperson for an example (California) lease agreement to examine for yourself.


I'm surprised that they are adjusting lease residuals upwards! I thought the residual on my lease was rather optimistic (even after deducting the $7500 federal tax credit). But that's great news for new leasees =)


EDIT: the lease does state that one is responsible for paying the remaining lease payments (minus unearned interest) - but it continues to add the residual to that sum and then subtract the wholesale value of the car. So if you read that one clause of the contract without reading the rest (admittedly it's not exactly exciting reading material), it's easy to interpret the contract as your salesperson did.

 

[calisnow]

Did anyone find the payments for going over the mile limit at the end of the lease?
I did the numbers comparing 10k miles and 15k miles on the lease and the difference was 11.4 ct per mile. But I would assume going over the limit costs more per mile.

I *think* it's $0.25 / mile going over, regardless of model. Which ironically makes it cheaper per mile to go over on a loaded P85D than on a stripper 70S as a percentage of vehicle value.

 

[jeffro01]

I *think* it's $0.25 / mile going over, regardless of model. Which ironically makes it cheaper per mile to go over on a loaded P85D than on a stripper 70S as a percentage of vehicle value.

You would be correct.

Jeff

 

[rog]

I'm surprised that they are adjusting lease residuals upwards! I thought the residual on my lease was rather optimistic (even after deducting the $7500 federal tax credit). But that's great news for new leasees =)

Maybe their CPO program goes so well that they anticipate higher secondary market prices being paid 3 years from now

 

[ChadFeldheimer]

Maybe their CPO program goes so well that they anticipate higher secondary market prices being paid 3 years from now

Perhaps =)

Tesla has been steadily increasing production. That means the current supply of used Tesla's is quite low relative to, say, 2-3 years from now. No prizes for guessing what happens to prices with increased supply.

On the flip side, maybe demand will keep pace to offset the increased supply. There's still a lot of people out there who haven't driven a Tesla yet!

Time will tell!

 

[Super_Popular]

They will? My sales person told me in an e-mail yesterday that if I try to end a lease early I'm responsible for all the remaining monthly payments - even if I want to upgrade to a newer/more expensive Tesla.

I asked that question today and was told the same thing.

 

[Xpress]

I asked that question today and was told the same thing.

Apparently no 'pull ahead' program like Porsche and BMW yet. That's unfortunate.

 

[Super_Popular]

Apparently no 'pull ahead' program like Porsche and BMW yet. That's unfortunate.

I dunno, the thing about Tesla is that every employee has a different story no matter what you ask about. So it does't surprise me that some one was told they could upgrade while in a lease.

 

[calisnow]

Perhaps =)

Tesla has been steadily increasing production. That means the current supply of used Tesla's is quite low relative to, say, 2-3 years from now. No prizes for guessing what happens to prices with increased supply.

My thoughts exactly - if depreciation does get worse, then today's lease deals will look cheap in retrospect - and there may be great offers made by Tesla at the end of the leases to get lessees to purchase the cars.

 

[aus]

It's all that drive off money that REALLY SUCKS with leasing a Tesla. It was $9,000+ for me, which is INSANE compared to the German's.
I just don't get whey the guy who starts Paypal doesn't also have Tesla Finance to help with leases like the German's have. It also makes a ton of money for them.

Also, has anyone bought a car after the lease? SUPPOSEDLY, the $7,500 Federal credit is added to the Residual, though I couldn't find it in the paperwork.
Does that mean I get $7,500 off the residual at the end of the lease if I choose to buy it??
.

 

[MsElectric]

It's all that drive off money that REALLY SUCKS with leasing a Tesla. It was $9,000+ for me, which is INSANE compared to the German's.
I just don't get whey the guy who starts Paypal doesn't also have Tesla Finance to help with leases like the German's have. It also makes a ton of money for them.

Also, has anyone bought a car after the lease? SUPPOSEDLY, the $7,500 Federal credit is added to the Residual, though I couldn't find it in the paperwork.
Does that mean I get $7,500 off the residual at the end of the lease if I choose to buy it??
.

If they wanted to be straightforward with the $7,500 credit they should apply it as a Capitalized Cost Reduction. It is the only fair and straightforward way to do this, especially if you have any thoughts about buying the car out at the end of the lease. Other manufacturers actually do this. Tesla supposedly applies this to the residual but I have yet to see this with math that is transparent.

Agree about the amount down for a lease is crazy compared to their German competition. The lease we were considering required an amount down over $10K!

Tesla makes the best car in the world but if they really want their lease prices to be competitive, they have some way to go.

 

[davesm]

Residual percentages

FYI: the way they've lowered the lease rates (for non-performance models), is by increasing the residual percentage for 15K/12.5K/10K miles respectively from 52%/53%/54% to 55%/56%/57% (i.e. increased the residual percentages by 300 basis points).

I have a spreadsheet that calculates the lease rates, and when I plug in those residual percentages, the calculated lease payments exactly match the lease payments I've been quoted by Tesla finance. Unfortunately, however, the numbers provided on the Tesla website do not match the numbers that were quoted and calculated (the website numbers are too high)...

 

[kf93]

FYI: the way they've lowered the lease rates (for non-performance models), is by increasing the residual percentage for 15K/12.5K/10K miles respectively from 52%/53%/54% to 55%/56%/57% (i.e. increased the residual percentages by 300 basis points).

I have a spreadsheet that calculates the lease rates, and when I plug in those residual percentages, the calculated lease payments exactly match the lease payments I've been quoted by Tesla finance. Unfortunately, however, the numbers provided on the Tesla website do not match the numbers that were quoted and calculated (the website numbers are too high)...

So the actual lease numbers you get from tesla finance would be lower? Interesting.

 

[ahurst]

FYI: the way they've lowered the lease rates (for non-performance models), is by increasing the residual percentage for 15K/12.5K/10K miles respectively from 52%/53%/54% to 55%/56%/57% (i.e. increased the residual percentages by 300 basis points).

I have a spreadsheet that calculates the lease rates, and when I plug in those residual percentages, the calculated lease payments exactly match the lease payments I've been quoted by Tesla finance. Unfortunately, however, the numbers provided on the Tesla website do not match the numbers that were quoted and calculated (the website numbers are too high)...

Can you share this spreadsheet?

 

[pete8314]

I've very torn on this. My S is about to turn 3yrs old, so I'm assuming if I'm going to sell it, I should do that soon, so that the purchaser has a years' worth of warranty.

I've never leased a car before, but then again, I'd never driven a giant iPhone before Generally I'm against leasing as I'm a bit traditional in that way, plus in the UK leasing was rarely a good option. But the nature of a Tesla is that 3 years is an awful log time; it's a software differentiated product, so by it's very nature, it has to evolve. And my my nature, I 'need' the latest and greatest gadget.

So for the first time ever, I'm leaning towards leasing, probably an 85D (no sunroof this time, but most other options). I'd still love the P85D, but with my spec that's a difference of $400 a month, which I can't justify. Right now my lease payment would be $1284, which is almost right at $1 a mile (plus the signing fee). My current S cost around $87.5k new, has done 36k miles and is now worth around $50-55k, so, a ~$1 a mile. Is there anything wrong with my (very) rough calculations?

 

[ZBB]

Pete -
I'm in a similar position, although my Model S has about 46k miles.

i just ran a couple scenarios:
1) keep the current S another 3 years and buy the extended warranty in the next couple months
2) keep the current S 6 months past warranty (so run risk of no warranty), but a new S in the fall
3) trade the current S and lease a new S now (assume April delivery). I'd park some equity instead of rolling it into a lease.

I only looked at cash flows, but #1 is significantly less cash out over the next 3 years, and I'd still have some residual value in a 6 year-old S. #2 and #3 are similar (3 is slightly more spend)...

It basically tells me I shouldn't do the lease...

 

[pete8314]

True, but #1 will nearly always be the most cost effective option (and least fun?), as the depreciation curve levels off (for 'normal' cars at least) for years 3-6. If I keep my S for 2 more years I'll own it, and it'll maybe have $35k of value, assuming I buy the warranty. Leasing will cost me $200 more than my loan payment, but I'll pull out about $25k (value minus loan balance).

 

[Tedkidd]

I wonder how the model 3 lease will look...

 

[dgpcolorado]

Used to be 3.84% or .0016 I think.

As of a few days ago it was .0017 or 4%. Here is the current leasing document as a pdf to download:

Tesla Leasing Highlights

 

[davesm]

Here is a link to the thread with the spreadsheet I mentioned earlier (sorry for the delay in getting it up!):
TCO Lease vs Loan Cost Spreadsheet

And, FYI, as mentioned in the thread, the reason the website rates were higher than what I was quoted was because I had a $1,000 referral discount, and that had a different effect on the payments then simply setting the price to be a $1,000 less. When I removed the discount, the spreadsheet, what I was quoted previously, and the Tesla website all agree...