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Leasing vs Buying questions

Discussion in 'Off Topic' started by torikun, Sep 6, 2016.

  1. torikun

    torikun New Member

    Joined:
    Sep 6, 2016
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    Pacheco
    Hello. I just ordered my Model S and chose to lease it for two years. I will trade in my Prius for it. If I lease, I loose $10K for the total cost of the car. Cost to own is 69,742 @ 824 per month. With lease, cost to own is 79,543 @ 343 per month.

    Maybe the loss will be less if I buy the vehicle in two years?

    If I decide to get a new Tesla in two years and turn in this one, will I get a new one with no out of pocket expense?

    I was only able to afford the lease because of trade in. What happens to all the money that I put in from the trade in?

    Thanks!

    Phillip.
     
  2. Electric700

    Electric700 Member

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    Location:
    Florida, United States
    Congrats on your decision!

    If you decide to go with the loan, you may be eligible to get the EV Federal Tax Credit, but a lease arrangement would not qualify for that. Also if you go with a lease, you will have the option to purchase your car at the end of the lease period at a certain cost defined by the residual value, which is on the lease contract. To me, a loan offers greater flexibility and there may be a cost savings as well if you are planning to keep the car. As for your other questions on the costs and possible losses, to be sure contact Tesla Finance at [email protected]. I am interested to know as well, so it would be great if you can post what they come back with here.

    Whatever you decide, enjoy your Tesla!
     
  3. torikun

    torikun New Member

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    Thanks for the info. I called Tesla Sales and they basically said that the trade in does not give you an equity. If I buy the car in two years, I will end up paying 10K more versus financing now. I was hoping to end up saving money at the end of two years because of depreciation.
     
  4. Electric700

    Electric700 Member

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    Location:
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    Good to know, thank you.
     

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