Model X lease?

[Jayskywalker21]

Is it just me or do these Model X's lease terribly. No buyout and on any configuration for the plaid or LR you're paying like 60-65% in depreciation and then you have to give it back

 

[Genie]

I’ve never leased a car before, isn’t part of idea that you can walk away from a depreciated vehicle?

 

[Jayskywalker21]

I’ve never leased a car before, isn’t part of idea that you can walk away from a depreciated vehicle?

It is but with a vehicle taking such a hit and you pay for that depreciation this deal actually makes no sense. Usually Residual value for a basic 3year/12k mile lease the RV is above 50 for MOST automakers. This is around 35-40% with no buyout option. They'll take it back and resell it for a ton I'm sure

 

[oneway]

You are correct, 50-55% is what I've normally paid on vehicles. I think the biggest thing that kills the residual is Tesla's strategy of reducing the price of vehicles. I don't know of any other manufacturer that uses that strategy. For example. I have a refreshed LR MS, that is coming up on its' 36 month end in August. Over the last 18 months or so, I've watched the early lease termination go from the lowest (about 18 months ago) ~$2,500 to the latest $10,968. I only have 5 months left, it would be cheaper to pay the remaining payments. When they reduce the price the early lease termination shot up, as it should - since you can now purchase a Plaid Model S for not far off of my LR.

 

[Zer0Her0]

I am looking to lease a Model X LR as well (in October when my MLYR goes back). Was told by a Tesla advisor from corporate to wait until 3 months left and they can do a pull ahead of the remaining payments. I don't like to keep my cars for more than 3 years so I'm in a pickle as well as I'd like the lesser required down payment, lack of mileage limitations but worried about what the car's worth is then and how I may be upside down in loan vs value...

 

[jboy210]

Is it just me or do these Model X's lease terribly. No buyout and on any configuration for the plaid or LR you're paying like 60-65% in depreciation and then you have to give it back

For me the idea of a lease is to give the car back! With the lease you have much less concern about the car's residual value from the beginning. It is up to the lease company to make the residuals work for them if Tesla drops prices. My only concern is the monthly lease payment.

 

[Jayskywalker21]

For me the idea of a lease is to give the car back! With the lease you have much less concern about the car's residual value from the beginning. It is up to the lease company to make the residuals work for them if Tesla drops prices. My only concern is the monthly lease payment.

Which is absurdly high with no lease buyout. Your concern is really the whole point. Teslas Lease program is terrible

 

[TMSfanatic]

that was always their plan. make you pay more with low residuals, then pocket the equity left

 

[jboy210]

that was always their plan. make you pay more with low residuals, then pocket the equity left

Tesla can make a lot of money selling used cars if their acquisition costs are controlled. And as a Tesla shareholder they need to make more money.

 

[TMSfanatic]

Tesla can make a lot of money selling used cars if their acquisition costs are controlled. And as a Tesla shareholder they need to make more money.

it's a double edge sword. we're all shareholders of a public company in one way or another. This practice retains more profit per car but that's also why inventory is building up. And fundamentals is not exactly what's holding up the valuation since it's vastly overvalued but i digressed. Porsche also doesn't lease well (but they do allow you to buy out the lease) but that's justified since they are not a mass producing manufacturer, tesla promises (to shareholders) the goal of selling millions a year, there's no way with the way things are set up today