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Model X - Buy or Lease

Discussion in 'Model X' started by boney12, Sep 28, 2019.

  1. boney12

    boney12 Member

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    hello members,

    I am close to placing an order for Model X and would like to know if it makes sense to buy or lease a MX.

    I normally keep my cars around a long time and do not believe in leasing.

    However, MX is an expensive piece and there are continuous updates/ improvements made to MX by Tesla through the years and I see it a continuing trend in the near future too.

    Hence, I would like to know do MX hold their resale value if I were to sell it say 3 years down the line or is leasing a good option ?

    Thanks bunch!!
     
  2. SaniDel

    SaniDel Member

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    Your situation is very familiar. We've always owned our vehicles, drove them long and hard and since 1996 have owned only one vehicle at a time for both my wife and I to drive.

    As we age our mileage declined and we're now accumulating less than seven thousand miles annually, which would be ideal for leasing to avoid mileage caps. A new Tesla Model X has uncertain residual value due to constant improvements of new vehicles, list price instability and the prospect of a new version with the 'plaid' powertrain. Tesla isn't helping as they shift their attention to the Models 3 and Y and especially if they deprecate the original Model X in favor of a 'Version 2" that would depress residual values.

    So, we may lease than purchase for the first time ever, but then we would face making car payments 'forever' as we have no retained equity. On the other hand ... considering that we would likely sign only a two or three year lease we would avoid having to 'eat' the depreciation. Economics 101 says buy appreciating assets and rent/lease depreciating assets ... a Tesla Model X is the "poster child" for a depreciating asset ... but I want one!
     
    • Like x 4
  3. mswlogo

    mswlogo Well-Known Member

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    Interesting thinking. I never leased either. Been buying cars mostly cash for quite some time. I just bought a Model X and perhaps I should have leased.

    We have no dept and it feels good. I like to amortize what ever car I have over 10 years to estimate the true cost monthly if I kept it that long. And I have kept some cars that long.

    The Model X is $833/mo for 10 ten years. Yikes what was I thinking. Any way I suspect a lease would be much higher than that, and should be. But what’s the chances of me keeping this car for 10 years?

    A lease would constantly remind me how “excessive” a Model X is over real need. Once bought, I’m past that.

    I also might do 14K miles a year on our (weekender car).

    Not sure the X will get “plaid”. I can only imagine what that will initially cost.
     
    • Like x 2
  4. Sandiegodoug

    Sandiegodoug Member

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    I buy cars I like and keep 10-15 years, then give them to my kids. I plan same with our 2 1/2 year old x and almost 2 year old 3. I think leasing is good when you write off as a business expense.
     
  5. boney12

    boney12 Member

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    Thank you all for sharing your experience and opinions. Greatly appreciated!!
     
  6. Zorg

    Zorg Active Member

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    You can lease and then decide too but or not when lease ends.
     
  7. Green_Light

    Green_Light Member

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    Leased a P100D today and am now thinking - maybe switch it to BUYING?
    It seems that the downpayment and the x36 monthly payment are way too much and we will be better off buying.
    Still deciding...
     
  8. aix93

    aix93 Member

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    Purchased your 75D X Dec 2016 and typically purchase all our cars. Could have gotten a 100D for the same price today. Love our all electric 2nd row, not offered anymore. May upgraded had I not fully wrapped it with PPF. Elon just announced three motor S and X for 2020. Knowing what I know I'd lease for now. But you have unlimited funds, go ahead and buy.
     
  9. Green_Light

    Green_Light Member

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    A 3rd motor might end up being an incremental upate only, like higher efficiency, smaller size of the motor, more pull at 60m/h+, etc. The P is already so fast.
     
  10. testarossa

    testarossa Member

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    I'm leasing mine for a few reasons,
    1. can write off portion of lease as business expense
    2 I feel that this car is not quite there in terms of real world use-ability for family needs compared to ICE and electric vehicles in 2-3 years will present a much better rounded options. Leasing makes it easy to walk away from the car without the hassle of selling privately or getting low-balled by the stealer. The electric vehicle competition in 2-3 years will be far more intense with much better battery range, and many will consider these cars antiquated and out of warranty.
    3 keeping the monthly lease amount at a reasonable number allows you to walk away mid lease with options like swap a lease and lease trader.
    4 I like knowing exactly how much a year I'll be spending on a car, with a purchase you're at the mercy of the economic factors.
     
    • Like x 1
  11. Airforcebj

    Airforcebj Member

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    I had the same question when I bought my X. I was thinking I would lease initially. However, when I looked at the residual value to purchase at the end of the lease, I compared it to how much I would owe after 3 years of payments of my standard range X. The residual was somewhere around 54-56k if I recall, but I would only owe around 48k. Seeing as it’s almost impossible to find a model X for sale under $60,000, I figured that if I wanted to upgrade after 3 years, I should certainly be able to at least break even, but maybe even make a few bucks selling it. Maybe this math works only on the none tricked out versions of the X, but who knows. YMMV.
     
    • Like x 1
  12. jboy210

    jboy210 Supporting Member

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    #12 jboy210, Oct 1, 2019
    Last edited: Oct 1, 2019
    I always lease, but with the X am more happy that I did. I cannot see buying our at the end of the lease in 14 months. The price of a new X will be too close to the lease buy of our current X.
     
  13. jboy210

    jboy210 Supporting Member

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    Pretty sure aix93 is referring to the 3 motor Plaid version. The S Plaid prototype is setting records around the Nurburgring! Sorry Taycan
     
  14. bewilderman

    bewilderman Member

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    I had the same dilemma last month and started a thread here. I took delivery of my Raven X on Sept 21. I ended up leasing after doing a lot of research on this, and trying hard to justify buying. I just updated the original thread with why.

    Here's the original thread: 2019 Model X Raven: Lease or Finance?!
     
    • Like x 2
  15. tps5352

    tps5352 Member

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  16. DiverDoc X

    DiverDoc X Member

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    tps5352 Thanks for the information! That’s really helpful.
     
  17. tps5352

    tps5352 Member

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    You're welcome; thank you.

    The thread by bewilderman (mentioned above in his Post #14):

    2019 Model X Raven: Lease or Finance?!

    appears important, too. I need to more carefully go through his figures and compare with my example.

    Finally, I see that leasing is apparently more/most attractive for those that can legitimately claim a business expense on their income tax return. I cannot do that.
     
  18. DiverDoc X

    DiverDoc X Member

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    I’ll take a look at that one too thanks. Yeah I drive around 1 hour each way to and from work, but can not claim business expense (as don’t have my own company).

    Thanks again
     

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