M3 SR+ now and Trade later for M3P or MYP : what's your take?

[MdlY55]

Hi all,

was wondering what's your take on getting "just" a 2021 M3 SR+ right away, and drive it for 12-24 months and trade-it in for an "upgrade" M3P or MYP later on?

My friend is kind of selling me on getting the "just" 2021 M3 SR+ to benefit from the EV incitatives which are not available for the M3P/MYP, for my daily 45miles commutes which include one 550 miles round trip for work, which gives around 730miles/week just for work.

Thanks,

 

[jjrandorin]

It is ALWAYS a bad idea to PLAN on buying a car and trading it in 12-24 months. Its just "how much are you going to lose?" if the plan would be to upgrade "later" then you should consider leasing it now instead of buying it even with tesla's higher residual values.

At least on a lease, how much you lose is up front, and you can just give it back instead of selling it.

Its never a good financial decision to plan on buying a "regular" car and sell it within 2 years. A few cars appreciate in value but most dont.

 

[MdlY55]

That was also my understanding : do it once do it right.

However, he got me thinking. And quite frankly, with these COVID times, it wouldn’t be a bad idea to post pone big financial purchases.

You’re right that a 12-24months lease would be less subject to surprises and more predictable.

 

[jjrandorin]

I dont know how the rates are in canada for "short term" ie 24 month leases, but if thats how long you are thinking about keeping a model 3, thats what I would do. That accomplishes a few things.

1. Sets in stone your payment and the fact you will be giving it back.
2. Allows you to only have to deal with the car for 2 years. if you hate it, you can likely ride it out for 2 years
3. Allows you to only have to deal with the car for 2 years, if you love it but it doesnt have enough range, you can likely ride it out (and less worry about how you charge it.

On the other hand, you will:

1. have to keep it for 2 years, no matter what happens (for the most part). Harder to get out of a lease if something happens and you want / need to get out of the car fast.
2. not really be able to customize anything. Not sure how tesla is about things like window tint for example, but most leases are written that you have to give the car back in the same condition.
3. kinda sucks if you have to buy winter tires as its unlikely you will get full use out of them over the course of a lease (although you can sell used wheels / tires)