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Leasing Model 3?

Discussion in 'Model 3' started by daniel, Apr 21, 2017.

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  1. 206er

    206er Member

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    #41 206er, Apr 25, 2017
    Last edited: Apr 25, 2017
    hopefully Tesla comes out with some new (and better) financing options or promos across the board, or at least for the Model 3. Sure some people will pay cash, but Tesla is entering a segment of the market that mostly finances cars at the best deal possible, ala the Camry and Accord or even IS and TLX crowd.

    Sure the 3 is supposed to be competitive with the BMW 3 series, but since this is being billed as Tesla's car for the masses, I'm really hoping that purchasing and financing deals will be on par with what Honda (Acura) and Toyota (Lexus) offer.
     
  2. democappy

    democappy Member

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    If by financing you mean loans, then I think they already do a good job. The current rate they offer through their partner (is it still Alliant?) is 1.49%. If you can't afford a car on a 72 month/1.49% loan, then you have no business buying that car.

    If by financing, you mean leasing, then it is definitely a worse deal. However, leasing is always worse than buying for every auto company. How do people think leasing companies make their money if the lease isn't obviously the worse deal? You are paying money to a company to take on the risk that the re-sale price might take a huge hit. Tesla probably has it a little a bit of an extra risk because there is more uncertainty in the car's long-term value than a company that has been making the same car for 20 years.
     
  3. 206er

    206er Member

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    Wow, wasn't aware of the 1.49% loan deal - that is stellar! Yeah, I was looking mainly at leasing and assuming the loan offer was that a similar bit of unsavory, but 1.49% is great! In that case, keep it up, Tesla!
     
  4. democappy

    democappy Member

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    If you ever want to check the current offering you can go into the design studio and click on loan tab where it shows price (on the right side you can tab between lease/loan/cash). Below that it currently listes this under loan which is where I got my info on current offering:

    $5,000 Down Payment
    Offset by $7,500 in Incentives
    72 month loan, 1.49% APRCustomize your loan payment

    I am pretty sure this has been fairly consistent at least for the past year. I don't remember exactly what I got in my financing back in August, but I think it was the same.
     
  5. smak

    smak Member

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    I wonder if the Down Payment amount will be lower on the Model 3.

    $5,000 is probably around 6% of the final Model S price, but would be over 10% of most Model 3 purchases.
     
  6. Darryl

    Darryl ModelXTracker.com Co-Adm

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    Elon indicated on last weeks call that Tesla will not be subsidizing leasing of the Model 3. Subsidizing has become the norm for most manufactures to offset the cost of the lease.

    Therefore this is one reason why leasing may not be making financial sense for most getting a Tesla Model 3. Typically Tesla leases have been at high rates with poor residuals. This becomes very obvious when interest rates for purchase are around 2%.
     
  7. Darryl

    Darryl ModelXTracker.com Co-Adm

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    I think rates have gone up by 50 basis points recently and is back up to 1.99% or maybe even 2.49%.
     
  8. democappy

    democappy Member

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    Just checked the site again. Still shows 1.49%

    $5,000 Down Payment
    Offset by $7,500 in Incentives
    72 month loan, 1.49% APRCustomize your loan payment
     

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