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Lets talk leasing...

Discussion in 'Model 3' started by Brian Minick, Jan 31, 2017.

  1. Brian Minick

    Brian Minick Member

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    Apr 7, 2016
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    Location:
    South Florida
    I don't see much about leasing being talked about so figured why not. I reserved in store around 6pm on the 31st before online ordering was open. I am on the east coast and hopeful to get my car by q1 2018. I've been saving for the car already, and will have a very nice down payment to put on the car (~30-50%) when it comes time to build it out. I've been thinking more and more about potentially leasing the car vs buying.

    • What do you think leasing will cost? Are there any calculators people put together? Do you lose the tax credit or does it get built into the price of the lease?
    • Would I need to commit to leasing or buying at the time of selecting the options?
    • Does it make sense to lease this car? First production year car, technology driven and it may get outdated or revamped after 3-4 years.
    • Any first model s owners reading? Do you wish you would have leased vs bought?
    • What is the buy out program look like with tesla if you want to buy the car outright after the lease? I just did this with my Kia Optima and was very happy in doing it that way.

    Curious if anyone has more information on why or why not it would be smart to lease my brand new model 3 vs buying?
     
  2. CmdrThor

    CmdrThor Active Member

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    Location:
    Marietta, GA
    • What do you think leasing will cost? Are there any calculators people put together? Do you lose the tax credit or does it get built into the price of the lease?
    Look at the cash price of a Model S or X and the lease price. Currently the tax credit is built in to the price of the lease, but if you buy it out at the end of the lease you essentially lose the credit.

    • Would I need to commit to leasing or buying at the time of selecting the options?
    No, you can change your payment method up until delivery of the vehicle.
    • Does it make sense to lease this car? First production year car, technology driven and it may get outdated or revamped after 3-4 years.
    Will you want to get rid of the car at the end of the lease? If so you should probably lease. If you want to keep it longer you should probably buy.
    • Any first model s owners reading? Do you wish you would have leased vs bought?
    Not a first Model S, but I took delivery of an early Model X. I bought and have no regrets. I intend on keeping the vehicle for a long time despite Autopilot 2.0, 100D battery, etc.
    • What is the buy out program look like with tesla if you want to buy the car outright after the lease? I just did this with my Kia Optima and was very happy in doing it that way.
    There will be a residual price. As mentioned above, the residual could be artificially $7,500 higher because of the tax credit. If the tax credit is still available when you take delivery and you lease, I would not suggest buying your vehicle at the end of the lease.
     
    • Informative x 2
  3. 3s-a-charm

    3s-a-charm Active Member

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    I leased my Model S knowing the technology upgrades and early-adopter vehicles make me want to change more frequently. I think an early production Model 3 will have a higher than normal likelihood of having flaws so in my mind, lease so you can hand it back and change to an updated version in a few years. I traded up to an X and the lease return was smooth/simple and didn't involve any penalties to get out early.
     
  4. MXWing

    MXWing Active Member

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    I've wonder the same myself so generated some discussion regarding the X but it should apply for all Teslas in general.

    Is it actually smart to lease a Tesla?

    No one will know if its a good deal or not until we actually see specifics. In general, I believe Tesla lease terms are really bad.

    For me I try to buy for the following reasons and many of the reasons don't pop up on a lease vs buy calculator.

    * I customized as much as I can Tinted windows, paint protection film, etc. All that is wiped away on a lease.
    * I hate to control my miles. I might overdrive or under drive the miles. You lose either way.
    * Autonomy software might be mature enough to your liking once its time to give your lease back.
     
  5. jaed

    jaed Member

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    Jan 6, 2017
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    California

    Would you mind expanding on the process when you upgraded early? How early did you upgrade?... I am looking at the lease due to the 100% business write off.
     
  6. McHoffa

    McHoffa Member

    Joined:
    Sep 29, 2015
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    Location:
    Canton, NC
    One thing to think about with the 3 (or the S/X at that point) is that when you get the car the rebate will be there, but within a year or so it will be gone, so suddenly that instant $7500 drop in value is no longer there. You could work out the math on how that affects the final value vs what you paid once we know the lease details.

    Personally I'd love to lease just for the smaller payment and to upgrade in 3 years, but I would just end up far too close to 15k miles per year, even as our second car, to risk it (and I think I will want to drive more once I have my Tesla)
     
    • Like x 1
  7. wilhelmspencer

    wilhelmspencer Model 3 Reserved 3/31/16 In Store 10:20 PST

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    Jan 30, 2015
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    I was thinking exactly the same thing. I am very likely to blast through my yearly mileage. With it being the "new shiny thing", fun to drive, interested family and friends wanting to go for test drives, daily commuting and occasional long distance I don't think a lease is right for my family.
     
  8. dsnows

    dsnows Member

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    Location:
    Winchester, VA
    I have the opposite problem. I don't drive enough to take advantage of even a low milage lease. Most leases only discount down to 10,000 miles per year. I drive 3,500 to 4,000 per year. I feel like a leave a lot of miles on the table and don't get credit for the low miles at the end of the lease. The residual value is the same whether there are 30,000 miles at the end or only 12,000.
     
  9. dsnows

    dsnows Member

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    Location:
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    Any idea if there is a one payment lease option? Some companies allow this. You pay the entire lease up front at a discount by avoiding some finance charges. So, if the Price of the car is 50,000 and the residual value is calculated at 25,000 at the end of 3 years, you pay 25,000 cash, rather than 25,000 X some lease factor (interest) /36 monthly payments. You still have to turn the car in or pay off the residual value at the end of the lease of course.

    I would prefer to do this if possible. Less cash up front compared to buying outright, avoid finance charges, upgrade or buy at the end of lease.
     
  10. MXWing

    MXWing Active Member

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    If you drove that little, it makes way more sense to buy and hold and take care of your vehicle for 10 years.

    Paying up all that cash up front and having your car totaled 1000 miles later would suck.
     
  11. dsvick

    dsvick Active Member

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    That would be entirely up to the leasing company
     

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