Leasing better than Financing or even Cash??
I'm a serial leaser for over 12+ years and very knowledgeable about how to construct a lease deal.
Tesla has been known to typically be a "bad leasing" candidate due to how they structure their leases. But lately, it seems Lease structure is much better.
So, I ran the numbers in Excel and here's what I found. Would like some feedback on if I missed something?
(I will drive a maximum of 10k mi/year)
Car: 2021 LR AWD , White, 19 wheels
price is $52,790 with drive off fees: govt fee, Reg fee etc. (not including tax)
Lease:
Monthpayment: $727.50/mo.(incl tax) with only $526 cash due at signing towards drive offs. 36/10k. $0 down payment towards cap cost reduction.
Finance:
$52,790 plus 7.75% tax, financed amount: $56,881.
Finance @ 1.99% for 60 months = Payment $997 if I put $0 down.
Cash: $56,881 out the door including tax.
End of 36 months:
Lease:
total cost over 3 years: $26,716 (36 pmts + down payment of $526)
Finance:
1.99% APT / 60 months , $0 down payment. From Credit union.
Finance cost over 3 years: $36k. After 3 years, If I sell the car for $30,000 (60% of MSRP), the net profit would be roughly $7,000 after paying off loan ($23k bal).
Bringing the total cost to $29,000 over 36 months.
CASH
Pay Cash: $56,881 including tax today.
sell car for $30k in 3 years,
Final total cost over 3 years : $27,000
Note on resale value: I know resale values of M3s are crazy right now, maybe 80% after 3 years. But let’s be realistic - in 3 years from now, the used car market for EVs cant be what it is today, and we must assume it will go back to “normal”, where 3 year depreciation goes back to 60-62%. Of course, I could be wrong - but we must plan for the most probable outcome, not what we hope to see.
So, based on above numbers — Why would I want to Finance or pay Cash if Leasing is cheaper?
I'm a serial leaser for over 12+ years and very knowledgeable about how to construct a lease deal.
Tesla has been known to typically be a "bad leasing" candidate due to how they structure their leases. But lately, it seems Lease structure is much better.
So, I ran the numbers in Excel and here's what I found. Would like some feedback on if I missed something?
(I will drive a maximum of 10k mi/year)
Car: 2021 LR AWD , White, 19 wheels
price is $52,790 with drive off fees: govt fee, Reg fee etc. (not including tax)
Lease:
Monthpayment: $727.50/mo.(incl tax) with only $526 cash due at signing towards drive offs. 36/10k. $0 down payment towards cap cost reduction.
Finance:
$52,790 plus 7.75% tax, financed amount: $56,881.
Finance @ 1.99% for 60 months = Payment $997 if I put $0 down.
Cash: $56,881 out the door including tax.
End of 36 months:
Lease:
total cost over 3 years: $26,716 (36 pmts + down payment of $526)
Finance:
1.99% APT / 60 months , $0 down payment. From Credit union.
Finance cost over 3 years: $36k. After 3 years, If I sell the car for $30,000 (60% of MSRP), the net profit would be roughly $7,000 after paying off loan ($23k bal).
Bringing the total cost to $29,000 over 36 months.
CASH
Pay Cash: $56,881 including tax today.
sell car for $30k in 3 years,
Final total cost over 3 years : $27,000
Note on resale value: I know resale values of M3s are crazy right now, maybe 80% after 3 years. But let’s be realistic - in 3 years from now, the used car market for EVs cant be what it is today, and we must assume it will go back to “normal”, where 3 year depreciation goes back to 60-62%. Of course, I could be wrong - but we must plan for the most probable outcome, not what we hope to see.
So, based on above numbers — Why would I want to Finance or pay Cash if Leasing is cheaper?
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