TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Lease Residual and MF

Discussion in 'Model S: Ordering, Production, Delivery' started by MikeyJS, Sep 4, 2016.

  1. MikeyJS

    MikeyJS Member

    Joined:
    Aug 27, 2016
    Messages:
    12
    Location:
    Florida
    Does anyone know what the Residual and MF rates are for the MS leases? The website doesn't give any info on what the cost to buy is after the lease term.

    Thanks
     
  2. goofygrin

    goofygrin Member

    Joined:
    Dec 21, 2012
    Messages:
    28
    Location:
    United States
    I can virtually guarantee you won't want to buy after the lease... Between new hardware and the model 3 I foresee high depreciation...
     
  3. MikeyJS

    MikeyJS Member

    Joined:
    Aug 27, 2016
    Messages:
    12
    Location:
    Florida
    Its not that I would want to. I am just curious how the monthly payment comes out. It looks like if you add the down payment, 7500 tax credit, and monthly payments then residual on a 2/10k lease is something like 60% (which seems pretty low)
     
  4. goofygrin

    goofygrin Member

    Joined:
    Dec 21, 2012
    Messages:
    28
    Location:
    United States
    Yes they feel low compared to other high line vehicles. The mf is for sure high.
     
  5. chillaban

    chillaban Member

    Joined:
    May 5, 2016
    Messages:
    580
    Location:
    San Jose, CA
    60% residual is low? Maybe for highly subsidized leases like with BMW and certain Mercedes models, but I've seen more around the 49/50/51 mark for 36mo residuals on luxury cars, especially if you don't want one of the promotional under-optioned stock configurations...
     
  6. number12

    number12 Member

    Joined:
    Aug 16, 2016
    Messages:
    791
    Location:
    Tesla
    You do not really get the full 7500 on a lease. MF is high. Depreciation will also be high.. also very bad lease terms in most state tax wise.
     
  7. Swissmoneychf

    Swissmoneychf Member

    Joined:
    Jul 15, 2016
    Messages:
    71
    Location:
    Swizerland
    After 4 years mine will be CHF 44'890.93

    But I plan to sell it after 2-3 years max.
     
  8. sbtz

    sbtz Member

    Joined:
    Jan 18, 2016
    Messages:
    104
    Location:
    southern california
    The way their leasing calculator site does it is (on a Model S 60, 36mo 10k/yr):

    (MSRP x .56) + 7500 fed rebate = residual

    What terms are you looking at?
     
  9. MikeyJS

    MikeyJS Member

    Joined:
    Aug 27, 2016
    Messages:
    12
    Location:
    Florida
    Yeah i guess I am used to my BMW lease where my 36/15K lease has a residual of 56% an a MF under .001 (using multiple security deposits). Usually I feel that you are better off doing a lease for short term ownership. But with the lease numbers it seems like you might just be better off financing. If sbtz's numbers are correct, then residual on a 67200 MS would be 30,132. I haven't seen a used one going anywhere that amount...
     
  10. sbtz

    sbtz Member

    Joined:
    Jan 18, 2016
    Messages:
    104
    Location:
    southern california
    That'd be 67200 x .54 + 7500 = 43788 (65%). I also come from the bimmer world and miss MSDs. Last 4 cars have been BMWs, but the moment I test drove a Tesla...
     
    • Funny x 1
  11. MikeyJS

    MikeyJS Member

    Joined:
    Aug 27, 2016
    Messages:
    12
    Location:
    Florida
    Yes, I agree with the 43,788. But the 65% would be amount paid off. So residual would be 35%...
     
  12. sbtz

    sbtz Member

    Joined:
    Jan 18, 2016
    Messages:
    104
    Location:
    southern california
    We might be saying the same thing, but 65% is the residual (as in the projected value of the car at the end of the lease period, usually the pay-off amount). The lessee is responsible for paying the depreciation (35%), plus interest (money factor), and sales tax (depending on where you are). Just want to make sure that we're on the same page and that you don't get numbers that deter you from picking one up :)
     
  13. MikeyJS

    MikeyJS Member

    Joined:
    Aug 27, 2016
    Messages:
    12
    Location:
    Florida
    Yeah I think there is some confusion here...

    Where did you see the .56 on the site? I didn't see it. I thought you meant that the payments you make account for 56% of MSRP
     
  14. sbtz

    sbtz Member

    Joined:
    Jan 18, 2016
    Messages:
    104
    Location:
    southern california
    It's in the source of their lease calculator site. Specifically:

    '60kWh': {
    'base': 66000,
    'alg_residual': 0.54, // + 0.04

    (add .10 or 10% for 24mos)

    Then later, it specifies the adjustments for mileage (adding to the residual %):

    var mileages = {
    '10000':0.02,
    '12000':0.01,
    '15000':0.0,
    };

    Then a few other figures:

    var constants = {
    'money_factor': 0.0018,
    'interest_rate': 4.32,
    'federal_incentive': 7500,
    'acquisition_fee': 695,

    Finally, it calculates the residual here:

    var residual_value = (total) * (model.alg_residual + mileage + termResidual) + constants.federal_incentive;

    So in other words: Residual = 67200 * (.54 + 0 + 0) + 7500 = 43788

    43788/67200= ~65%

    So your monthly "rent" is 483.67 and interest is 188.98, then add tax - for me in CA it'd be 53.81 @ 8%.
     
    • Like x 2
  15. MikeyJS

    MikeyJS Member

    Joined:
    Aug 27, 2016
    Messages:
    12
    Location:
    Florida
    Man should have known to check page source :)
     
    • Funny x 1
  16. Erleichda

    Erleichda Member

    Joined:
    Jan 15, 2013
    Messages:
    69
    Location:
    Portland, OR
    Thank you SO much! Here are the other models:

    var models = {
    '60kWh': {
    'base': 66000,
    'alg_residual': 0.54, // + 0.04
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    '60D': {
    'base': 71000,
    'alg_residual': 0.54, // + 0.04
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    '70kWh': {
    'base': 71500,
    'alg_residual': 0.50,
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    '70D': {
    'base': 76500,
    'alg_residual': 0.50,
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    '75kWh': {
    'base': 74500,
    'alg_residual': 0.50,
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    '75D': {
    'base': 79500,
    'alg_residual': 0.50,
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    '90D': {
    'base': 89500,
    'alg_residual': 0.50,
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    'P90D': {
    'base': 112000,
    'alg_residual': 0.50,
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    'P100D': {
    'base': 122000,
    'alg_residual': 0.50,
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    'X60D': {
    'base': 74000,
    'alg_residual': 0.54, // + 0.04
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    'X75D': {
    'base': 83000,
    'alg_residual': 0.50,
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    'X90D': {
    'base': 95500,
    'alg_residual': 0.50,
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    'XP90D': {
    'base': 115500,
    'alg_residual': 0.50,
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    },
    'XP100D': {
    'base': 125500,
    'alg_residual': 0.50,
    'deposit': 2500,
    'downPayment': 5000,
    'term24': true
    }
    };

    // Additional residual value bump by mileage
    var mileages = {
    '10000':0.02,
    '12000':0.01,
    '15000':0.0,
    };

    // Additional residual value bump by term
    var terms = {
    '24': {
    '60kWh': 0.10,
    '60D': 0.10,
    '70kWh': 0.10,
    '70D': 0.10,
    '75kWh': 0.10,
    '75D': 0.10,
    '90D': 0.10,
    'P90D': 0.10,
    'P100D': 0.10,
    'X60D': 0.10,
    'X75D': 0.10,
    'X90D': 0.10,
    'XP90D': 0.10,
    'XP100D': 0.10
    },
    '36': {
     
    • Informative x 1
  17. hyper

    hyper Member

    Joined:
    Aug 8, 2016
    Messages:
    20
    Location:
    Bay Area
    I just got lease offer from Tesla today. Buyout at end of 2 year lease was 72% of purchase price on a 60D 15K annual (fully loaded, minus cold/jump seats).

    PM me if you want the screen captures they sent me 24 & 36 offers.
     
  18. Erleichda

    Erleichda Member

    Joined:
    Jan 15, 2013
    Messages:
    69
    Location:
    Portland, OR
    Gang, I've never leased before but want to understand correctly my assumptions because:

    1. Want to sell our 2012 Model S before it further depreciates once Model 3 is available.
    2. Have kids who no longer fit in jump seats, thus want to replace with MX.
    3. Have the cash to buy outright. However, the depreciation curve for the MX is totally unknown.
    4. Residual for the MX model I'd get is 57% at 3 years/15k miles.
    5. 3 years from now will have 17 and 15 year old, may not be shuttling kids as much as they begin to drive. Model 3 will be in full swing, have a reservation in fact.

    I used the view page source to run numbers also, using the quoted 4.3% interest and + 7500
    Cost new is 103,900. Residual quoted at $59,450 (57%)
    Upfront costs seem steep at 5000, plus 700 acquisition.

    Just seems like a good time to put the risk of depreciation on the lender?
     
  19. goofygrin

    goofygrin Member

    Joined:
    Dec 21, 2012
    Messages:
    28
    Location:
    United States
    Take a look at the cost between buying 15k miles/yr and 10k + paying the overage. On mine, I'm going to save 1500+ paying for the overage.

    But your line of thinking is why I recommend people lease vs buy electric vehicles. Think about it like an iPhone. If you could get some insurance against the next gen coming out and turning your $400 iPhone 6 into a $200 iPhone 6 when the 7 comes out, there are a lot of people that would take that.
     
  20. AMPd

    AMPd Active Member

    Joined:
    Nov 27, 2012
    Messages:
    1,546
    Location:
    Northern California
    Can the purchase price at the end of the lease be negotiated?
    The residual on my P90D is 76,508
    If the car is worth less, would the bank be willing to sell for the current value at that time?
     

Share This Page