Model Y leasing now available

[DBV1]

That is good news. I like to lease, as I like getting a new car every two to three years and don’t want to deal with a trade in. Who knows what Tesla resale value will be in three years. EV market will be a lot more competitive. Good thing is it is another choice and now people can lease a Y that like to lease, like me. Another option.

 

[Hovscorpion1]

Maybe. The configurator gave you the option of adding tax into the payment or not. I figured to make it a more apples to apples comparison I’d leave taxes out in both lease and buy.

They do a good job of listing all the fees in the details but for sure I’ve never leased with a Tesla so I am only taking a guess.

There is an image from someone who did lease where it shows add tax/fees into lease. I believe it was on TMC.

 

[CapeOne]

I just read that M3s hold close to 90% of value after 3 years. I expect the MY to have similar numbers.

It's very unrealistic to expect an M3 (or MY) to be worth 90% of its MSRP after three years, especially if Tesla continues to do price reductions as they have. There have been plenty of M3s listed for sale at less than ONE year old with asking prices below 90% of original MSRP, and trade/wholesale numbers would be even lower.

 

[BreatheEasier]

I don't think the tax credit is available on leases. You get that credit when you file your taxes but only if you purchase. It reduces you taxable income by $2k.

Correct, tax credits only apply to purchases, so if you are in a tax situation where the credit applies, a purchase/loan may make more sense.

 

[BreatheEasier]

I completely agree with @BreatheEasier, putting money as a down payment on a leased vehicle is lost money. It’s a misdirection that lowers your monthly payment but in the end, it’s still the same amount.

after doing some more digging, with a $0 down option, the payments came out to around $750/month, 10,000 miles year, 36months, no purchase option at end of lease.

I am 99% sure I will be purchasing my Y instead of leasing. For those of you thinking about leasing, be sure to expand the payment details on Tesla website to really understand all the costs associated with it

Also, not sure of Tesla terms, but just to drive the point home, that any down-payment on a lease will not be returned to you if the car is totaled during the lease, unless the lease program has gap insurance, or you've purchased gap insurance on your own. BMW this is built into their lease terms. With seemingly now easy it is to total-loss a Tesla, this may be a concern for those who are thinking about leasing.

 

[HeyEph]

So, still no option to buy it out at the end of the lease? BTW, for NY, I see the $2000 incentive as adding to the "potential savings"...

 

[burn1010]

Correct, tax credits only apply to purchases, so if you are in a tax situation where the credit applies, a purchase/loan may make more sense.

Thanks for the replies. I wonder then why is Tesla lowering the monthly lease payment on their website taking into account the $2000 credit.

 

[N1L CO2]

Thanks for the replies. I wonder then why is Tesla lowering the monthly lease payment on their website taking into account the $2000 credit.

It could differ from state to state.

 

[MP3Mike]

Thanks for the replies. I wonder then why is Tesla lowering the monthly lease payment on their website taking into account the $2000 credit.

The New York incentive is a rebate not a tax credit. And leasing qualifies to get it.

 

[burn1010]

The New York incentive is a rebate not a tax credit. And leasing qualifies to get it.

So the $2,000 in ny acts like a cap cost reduction or something else? TIA

 

[MP3Mike]

So the $2,000 in ny acts like a cap cost reduction or something else? TIA

No, it is a $2,000 rebate. And the person that gets it can use that $2,000 to go toward their monthly payments if they want to. (Or they can have a very big night on the town with it. Or spend it any other way they want to.)

 

[burn1010]

Thanks for the reply. The lessee gets a check or can you just apply it to the lease payment during ordering?

 

[burn1010]

Got the answer by going to the ny.gov website:

Open to all New York State residents, the Drive Clean Rebate offers a point-of-sale rebate towards the purchase or lease of a new electric car. Taking advantage of the Drive Clean Rebate is very easy: simply purchase a qualifying electric car from a participating dealer, and a discount of up to $2,000 will be applied when you pay.

 

[MP3Mike]

Thanks for the reply. The lessee gets a check or can you just apply it to the lease payment during ordering?

Ok, I was wrong it goes directly to Tesla to reduce the cost of the car: How the Drive Clean Rebate Works - NYSERDA

 

[burn1010]

Yup, just saw that too. Thanks.

 

[mrtian97]

I would have only considered a lease if their terms were as solid as BMW, which I consider the best in the business. BMW residuals are high, gap coverage is already built into the lease (in case the car is totaled, which is common for Teslas), miles are relatively cheap to buy ahead of turn-in if you are over the allotment, lease return is easy and very predicable and they BMW is very flexible if you are going to buy/lease another BMW. As a bonus, I've always lowered my money factor with multiple security deposits up-front, which really makes a difference. And you never, ever put a deposit on a lease. Wasted money. IMO, if you can't afford a zero-down lease, then don't lease.

Would I have considered a lease if it was available when I purchased and I wasn't so damn impatient to get my MY? Sure, because it still would have saved me about $150/month. Although Tesla resale values are some of the best in the business, I am legitimately concerned about the competition in 2-3 years bringing Tesla resale way down, so a lease can help avoid that potential situation. I also would have saved $3K on MSRP if my delivery was just 3 weeks later. Sucks to be the early adopters sometimes, but MSRP lowering can happen at any time with any retail product. As usual, though my wife was right...I wasn't really driving anyway, and I could have certainly waited to buy an MY. I work remotely 100% now, and no timetable for when they will let us back in the office, so almost 4 weeks into ownership, I have 250 miles on the car. Not a good return on monthly payments for how few miles I'm driving...but then again, I feel it would be worse with a lease. I'd rather be putting my monthly payment towards ownership than paying Tesla to rent my garage while my MY isn't driven

Just curious with your experience in returning BMW lease as I am currently have BMW X5 lease. How do you negotiate the extra miles toward the end of the lease. My extra miles charge is $0.25/mile which I think reasonable for an X5, just wondering if they will give you a better deal at the end of the lease? I plan to return the car and most likely will have 6,000 miles over, which for 36 months lease, only come out to $42 per month

 

[BreatheEasier]

Just curious with your experience in returning BMW lease as I am currently have BMW X5 lease. How do you negotiate the extra miles toward the end of the lease. My extra miles charge is $0.25/mile which I think reasonable for an X5, just wondering if they will give you a better deal at the end of the lease? I plan to return the car and most likely will have 6,000 miles over, which for 36 months lease, only come out to $42 per month

I waited until the very last day of the lease, went online into my BMW account, and purchased miles over the limit for a discounted rate. My wife was 5K miles over her limit, and it was considerably less expensive than paying the $.25 per mile if I would have paid at lease turn-in. My BMW lease turn-ins take about 20 min, and I strongly suggest going for an official pre-lease turn in inspection (you'll get a full, printed form with a quote of what you will owe if you have any damage). You have the option to pay the fee, or have someone outside repair prior to turn in.

 

[mrtian97]

I waited until the very last day of the lease, went online into my BMW account, and purchased miles over the limit for a discounted rate. My wife was 5K miles over her limit, and it was considerably less expensive than paying the $.25 per mile if I would have paid at lease turn-in. My BMW lease turn-ins take about 20 min, and I strongly suggest going for an official pre-lease turn in inspection (you'll get a full, printed form with a quote of what you will owe if you have any damage). You have the option to pay the fee, or have someone outside repair prior to turn in.

Thanks, great suggestion. I agree as well that BMW offers best deal for the lease term. This is my 3rd time leasing BMW, the other time, I was not offer the mileage and I agree, very easy to return the lease.

 

[burn1010]

There are alot of Tesla people against leasing saying the net cost after 3 years is much more than owning bc you build equity as you make your monthly loan payments. There is evidence to this point as there are used 2018 model 3s with mileage less than 20k for sale for basically $6000 less than a brand new 2020 equivalent. Im assuming trade in values would be much less, plus you have to pay tax on the entire purchase price. Have to crunch the numbers a little more but im leaning towards leasing as I always have leased.

 

[madan005]

Given that leased M-Y can be traded to dealers, Is leasing still not a good option?