Model 3 lease deposit nonsense...

[Siciliano]

So I called the local Tesla store inquiring about where their lease application is. I've learned that apparently there is NO option to submit an application unless I blindly plop down a $100 **NON-REFUNDABLE** deposit to "place an order" first! I asked the agent, "So basically I have to gamble $100 to see whether or not I even qualify for a favorable lease??" ...and she calmly said, "Yes." LOL. I've never heard of something so ludicrous before.

My credit isn't stellar, and in the past, for every single car I've ever leased or financed I've had the opportunity to go over numbers and fill out an application. Then shortly thereafter I generally play the stupid game of going back and forth with lease numbers until all parties agree on the numbers. I guess it's completely different with Tesla. I know they're not a traditional "dealer", but seriously, making people gamble $100 just to see if they qualify??? Can someone please tell me this isn't true...

 

[ry-ballz]

That's the order fee, so essentially they're ordering you a car at that time.

You can always bring your own financing, but you'll still pay the $100 in the event you order a car.

 

[Siciliano]

That's the order fee, so essentially they're ordering you a car at that time.

You can always bring your own financing, but you'll still pay the $100 in the event you order a car.

That doesn't really make any sense - how can they order someone a car before even knowing if the person will be approved for a lease/loan??? It seems backwards to me..

 

[en_passant]

That doesn't really make any sense - how can they order someone a car before even knowing if the person will be approved for a lease/loan??? It seems backwards to me..

If you don't qualify, somebody will buy the car. There are many people waiting for these cars.

 

[Velcade]

If you're this worried about qualifying for the lease I'd recommend not going with a Tesla.

 

[JCannonTech]

If you have the assets and income to purchase a Tesla, then you shouldn't have trouble qualifying for a lease. There is no such thing as a "favorable" lease. There is a flat rate.

You pay $100 to order a car. The financing comes in the last week or two prior to you picking it up.

Tesla doesn't really care about someone backing out because they aren't willing to pay $100. They can barely keep up with U.S. demand as is. In fact, the wait time right now is nearly two months for most cars. If you don't buy it, someone else will.

 

[arghx7]

As mentioned above, the lease is the lease, they don't haggle. If credit or financial situation is a concern, don't get a Tesla. It's not like buying a Corolla.

$100 isn't a lot compared to how it used to work. They used to require a lot more upfront to get a car. Now if you can find an inventory vehicle and go to the service center you could probably discuss everything without putting down $100.

 

[Siciliano]

If you're this worried about qualifying for the lease I'd recommend not going with a Tesla.

Having bad credit doesn't mean I can't afford it, or that I don't have money - $550 a month for a lease isn't bad at all. I've had leases closer to $1,000 a month. The issue is my credit, and it isn't even my fault. I've co-signed for vehicles for family members in the past, and it has always come back to bite me in the ass. My credit went to crap at the expense of being a nice, trusting person. And I'm just a miser - I don't care how much money I have, throwing out $100 for no reason doesn't make sense.

 

[arghx7]

You're in New York. I recommend you go to an actual showroom and talk in person.

 

[Siciliano]

If you have the assets and income to purchase a Tesla, then you shouldn't have trouble qualifying for a lease. There is no such thing as a "favorable" lease. There is a flat rate.

You pay $100 to order a car. The financing comes in the last week or two prior to you picking it up.

Tesla doesn't really care about someone backing out because they aren't willing to pay $100. They can barely keep up with U.S. demand as is. In fact, the wait time right now is nearly two months for most cars. If you don't buy it, someone else will.

I have the assets and income, yes. The problem is credit...as I replied to another user before, I made some stupid decisions co-signing for a few members of my family, who then screwed me by not keeping up with payments. I was doing them a favor because there's no way they would have qualified for these high priced vehicles without me - I had near 800 credit score.

Anyway, I'm just "cheap", no matter how much money I have - I can't see throwing out $100. That's how people with money get ahead - by not throwing it out the window!

 

[M3BlueGeorgia]

Having bad credit doesn't mean I can't afford it, or that I don't have money - $550 a month for a lease isn't bad at all. I've had leases closer to $1,000 a month. The issue is my credit, and it isn't even my fault. I've co-signed for vehicles for family members in the past, and it has always come back to bite me in the ass. My credit went to crap at the expense of being a nice, trusting person. And I'm just a miser - I don't care how much money I have, throwing out $100 for no reason doesn't make sense.

If you have poor credit, its unlikely you get a lease approved. Generally leases require better credit ratings.

Better to work with your bank or credit union to get a loan approved.

BTW: Good rule for life is never, ever co-sign a loan. Though it sounds like you've already learned that lesson the hard way, sorry.

 

[ElectricIAC]

So I called the local Tesla store inquiring about where their lease application is. I've learned that apparently there is NO option to submit an application unless I blindly plop down a $100 **NON-REFUNDABLE** deposit to "place an order" first! I asked the agent, "So basically I have to gamble $100 to see whether or not I even qualify for a favorable lease??" ...and she calmly said, "Yes." LOL. I've never heard of something so ludicrous before.

My credit isn't stellar, and in the past, for every single car I've ever leased or financed I've had the opportunity to go over numbers and fill out an application. Then shortly thereafter I generally play the stupid game of going back and forth with lease numbers until all parties agree on the numbers. I guess it's completely different with Tesla. I know they're not a traditional "dealer", but seriously, making people gamble $100 just to see if they qualify??? Can someone please tell me this isn't true...

There’s such thing as a favorable lease on a model 3? Personally they all stink with the no-buy piece being the worst of the offenses past the stinky interest rate and overly cautious residual values.

 

[ewoodrick]

If you're this worried about qualifying for the lease I'd recommend not going with a Tesla.

Yep, if you have to ask, you probably can't afford it.

 

[Uncle Paul]

This is only an issue if you want to get your lease directly through Tesla. They do not have the time to "play the stupid game of going back and forth with lease numbers until all parties agree".

You can continue to play the stupid game with leasing companies and credit unions outside Tesla. That is usually what a legacy dealership is usually doing. They will spend countless hours shopping between different lenders to get you your golden deal. Tesla does not need to do this. There is a line around the block waiting to put down $100 earnest money to order their car.

Expecting Tesla to operate the way the legacy dealership do is going to be frustrating. They have their own modern way of selling cars that seems to be working out for them.

They dislike dealing with grinders and misers. They don't want to deal with the drama of butt hurt previous poor credit buyers. Either you want to buy or not, they don't want to get into a mud wrestling match with people that feel they are special and need special accomodations.

Legacy auto manufacturers often rig their captive leasing programs as a demand lever. When sales are greater than capacity, they charge market rates. When they can't sell all they make at market rates they will reduce lease costs as an incentive to "move the iron". Sometimes they get very close to 0 interest rates when cars are stacking up. See this a lot from Nissan on their ordinary cars. Money factor on a Rogue is near Zero. Right now, leasing from Tesla is at full market rates.

Even now, Tesla will not quote residual values. They say they want all their Model 3 cars back after lease end. Intend to use them in their FSD rental fleets.

Basically, Tesla does not want to play the lease rate shopping game with people that don't wish to place $100 earnest money.

Even legacy dealerships hate to put up with "tire kickers".

 

[ElectricIAC]

Yet all these “givens” go out the window when End of quarter comes up. This last go around was a little different with adjustments on inventory and demo cars being lower than the norm as witnessed.

The robotaxi rhetoric on their laughably poor lease offerings is just that. Rhetoric. They’ll get these cars back and turn them back around on the used market just like any manufacturer can, does, and should. That you believe they will showcase their “best” in beat down lease returns is just as hilarious as the lease terms.

 

[Siciliano]

This is only an issue if you want to get your lease directly through Tesla. They do not have the time to "play the stupid game of going back and forth with lease numbers until all parties agree".

You can continue to play the stupid game with leasing companies and credit unions outside Tesla. That is usually what a legacy dealership is usually doing. They will spend countless hours shopping between different lenders to get you your golden deal. Tesla does not need to do this. There is a line around the block waiting to put down $100 earnest money to order their car.

Expecting Tesla to operate the way the legacy dealership do is going to be frustrating. They have their own modern way of selling cars that seems to be working out for them.

They dislike dealing with grinders and misers. They don't want to deal with the drama of butt hurt previous poor credit buyers. Either you want to buy or not, they don't want to get into a mud wrestling match with people that feel they are special and need special accomodations.

Legacy auto manufacturers often rig their captive leasing programs as a demand lever. When sales are greater than capacity, they charge market rates. When they can't sell all they make at market rates they will reduce lease costs as an incentive to "move the iron". Sometimes they get very close to 0 interest rates when cars are stacking up. See this a lot from Nissan on their ordinary cars. Money factor on a Rogue is near Zero. Right now, leasing from Tesla is at full market rates.

Even now, Tesla will not quote residual values. They say they want all their Model 3 cars back after lease end. Intend to use them in their FSD rental fleets.

Basically, Tesla does not want to play the lease rate shopping game with people that don't wish to place $100 earnest money.

Even legacy dealerships hate to put up with "tire kickers".

I don't really know how to take this post. Most wealthy people (at least that I know) are big misers! lol I have a good friend that owns several business and restaurants in the area, and he haggled HARD at the McLaren dealership...we're talking about a measly few thousand dollars. If Tesla doesn't "want to deal" with these people, I hate to say they are likely turning away a good amount of business. Sure they're selling a ton of vehicles at the moment, but you could always sell more if you cater (appropriately) to the right people...

 

[Siciliano]

There’s such thing as a favorable lease on a model 3? Personally they all stink with the no-buy piece being the worst of the offenses past the stinky interest rate and overly cautious residual values.

Yes I JUST figured that out in the "fine print"!! I'm not going to lease now - I'll go with a finance. I had the exact intent to buy at the end of the lease...

 

[GreenT]

I have the assets and income, yes. The problem is credit...as I replied to another user before, I made some stupid decisions co-signing for a few members of my family, who then screwed me by not keeping up with payments. I was doing them a favor because there's no way they would have qualified for these high priced vehicles without me - I had near 800 credit score.

Anyway, I'm just "cheap", no matter how much money I have - I can't see throwing out $100. That's how people with money get ahead - by not throwing it out the window!

As others have said ... skip this ... you'll be complaining for years over losing $100. Move on. Next!

 

[ElectricIAC]

Worst case scenario: You hate the car and you resell it for minimal loss on the used market. What version are you thinking about?

 

[jjrandorin]

Yes I JUST figured that out in the "fine print"!! I'm not going to lease now - I'll go with a finance. I had the exact intent to buy at the end of the lease...

You will still need to put the $100 down for financing, but you wont have to pay the balance until you pick up the car, which allows you time to apply for teslas financing (which is actually through third party banks) or get your own financing. Someone will finance you if you put enough money down, so as long as you are putting a large enough down payment, you will get approved.

Leases (in general) are designed for minimal money down, so they have someone stringent requirements. For tesla specifically , there is no "finance office" or "salesman" that you haggle the pricing with.

Its different for sure, but they dont do as well with people who have marginal credit because they dont have their own finance arm, and are not generally trying to make it up in higher money factors etc.

Financing would be better in your situation.