Leasing vs Buying questions

[torikun]

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.

 

[Electric700]

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!

 

[torikun]

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!

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.

 

[Electric700]

Good to know, thank you.