Letter to Mr. Musk from a 1-day old outdated Model S owner

[verygreen]

The problem is that when you lease, the leasing company takes all the risk for depreciation, etc. They are not fools so they assume worst case and charge accordingly plus finance charges and their profit. You can always do better by buying outright.

Well, I disagree about "you can always do better" part. There been many cases where lease company estimation of depreciation was wrong. Moreover, if it's wrong in the sense that depreciation is less - you can sell the car yourself and even pocket some unexpected savings (less than if you bought outright - true, but insurance is not free).

 

[Chopr147]

Leasing vs. buying. I think we all know from a financial perspective leasing will not be better in the long term. BUT, with Tesla how many times have we heard "I sure don't want to own one out of warranty" . I leased and might end up buying it next year. My biggest concern/fear is the warranty

 

[BigD0g]

Given the rate of change and the lack of improvements but many hardware improvements, if I were to rebuy today I wouldn't do it, I'd get a 2 or three year lease and once the car is actually fully delivery on all it's promises then I'd buy. It appears right now, these cars are rough drafts for our soon to be self driving future, until they actually crack that nut, I'd just lease, since you take a far larger hit by buying outright and then turning around and selling it 2 years later to get the latest hardware.

 

[mspohr]

Given the rate of change and the lack of improvements but many hardware improvements, if I were to rebuy today I wouldn't do it, I'd get a 2 or three year lease and once the car is actually fully delivery on all it's promises then I'd buy. It appears right now, these cars are rough drafts for our soon to be self driving future, until they actually crack that nut, I'd just lease, since you take a far larger hit by buying outright and then turning around and selling it 2 years later to get the latest hardware.

Leasing companies are neither naive nor foolish. They price this into the cost of the lease and add their profit and finance charges. You pay more for a lease than buying. Don't think you can outsmart them.

 

[verygreen]

Leasing companies are neither naive nor foolish. They price this into the cost of the lease and add their profit and finance charges. You pay more for a lease than buying. Don't think you can outsmart them.

You think the leasing companies know when Tesla will deliver on the FSD and other promises?

 

[mspohr]

You think the leasing companies know when Tesla will deliver on the FSD and other promises?

No, but they do understand the risk there and price that into their lease. They price in all possible risks.

 

[BigD0g]

You think the leasing companies know when Tesla will deliver on the FSD and other promises?

Obviously it's three months maybe and six months definitely!!!!

 

[busterdan1]

If they are going to consider giving out something to compensate. I would like a new Roadster I just ordered a Y but a Roadster next to it would be wonderful. By the way I fully understand and expect that the Tesla of the future will have more features for less money and that is okay with me. I will buy that one to if I can afford it.