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MS Lease Turn In Fees

kizamybute'

Member
Aug 24, 2019
212
486
Los Angeles, CA
Generally, on EV's where tech changes on an almost daily basis, leasing is a good option. In today's very unusual market where manufacturers are struggling to build cars due to chip shortages, used cars are high in demand. But, even with Tesla's in the past, once new major functions were released on newer versions, the older cars declined significantly in value almost overnight. Most notably when AP1 came out. Then again when all cars were upgraded to AP2 hardware.

I've always done the math. For someone like me who is ready for a new car after 2-3 years, simple math always added up to a lease being lower in cost that a purchase when you simply add up how much you sent from the day you walked into the Tesla store to pick up the car to the day you turned it back in at the end of the lease. Leases have lower payments, lower down payments, pay less in sales tax and for many, that use them in their business, are better write off deductions. For me and my particular use, a 3 year lease always ended up being in the $5,000 to $8,000 range less than if I had bought the car, sold it and paid off the balance of the loan.

And more importantly, for someone like me that does go through cars every 2-3 years, it also protects you from the major value drops when Tesla releases a new feature that your older car is not capable of. In 2013 it was new battery technology. In 2014, was AP1. 2016, AP2. The prior models all took a hit in pricing. Also, add to that, the fact that Tesla can, and often does, choose to instantly reduce their pricing by large amounts. There were people that paid near $170,000 for a loaded Ludicrous P100D. Just a year or two later, you could get a fully loaded Ludicrous car for around $110,000. Those that financed their $170,000 cars still likely owed $130,000 on their 2 year old car when you could go buy a brand new one for $110,000. Those people got killed in terms of value when Tesla slashed the premium for the Performance version from $45,000 to $10,000. Leasing protects you from all of that as you couldn't car less what happens to pricing or new features or if the value on your car plummets.

Naturally, it's not for everyone. Those that keep cars for more than 5 years. Those that drive over 15,000 miles per year.

While not possible on the Model 3 or Y, at least with the S & X, you always have the option to purchase the car at the end of the lease. In doing my math, in the very unlikely event that I chose to keep my car beyond the three year lease period and buy it, the end cost, from day one until the day it was paid off has always been very similar to the end cost if I had just purchased it instead of leased it. Your price to buy the car is locked in. So you can always choose to buy it if the value is higher than the residual amount.

I like the leasing because it offers so much flexibility, better tax deductions and provides a zero risk aspect. Look at the Cadillac ELR (I think that was it?, the glorified version of the Chevy Volt). Those things sold for $70,000 plus and you couldn't five them away for $20,000 three years later. Leasing was clearly the better choice if you wanted one of those cars.

Another benefit, I've never had to worry about long term with my cars. Not that I do, because I have no need to, but if I wanted to, I could charge it to 100% every day and not have to be concerned about what it may do to the long term health of the battery.

I've always preferred true "luxury" cars. But, chose the Tesla for the past 9 years because I loved the amazing tech. I was willing to sacrifice the "luxury" items for the latest and greatest tech. Has been well worth it. But, for as often as that tech changes on these cars, leasing also makes it easy for people like me that always want the latest and greatest the car has to offer, to upgrade every 2-3 years without having to worry about being upside down in the loan, as most cars still are after just 2-3 years. Finally, the repair costs on a Tesla are astronomical if you're not under warranty. Leasing a car for 3 years ensures that I never have to worry about the cost of any repairs it may need. I'm always under warranty. I've been fortunate with my last few Tesla's in that they haven't seen the shop for any repairs. A couple minor things that Tesla sent out the mobile Ranger to fix. Thus, aside from just the cost factor of expensive repairs, a new car generally has fewer things go wrong than does an older car, therefore am rarely inconvenienced in having to take the car to the shop or deal with maintenance.

In the end though, all the other stuff are just cherries on top. The biggest decider for me has always been net cost from start to finish. For me and many with similar use preferences, the bottom line is, the three year cost of a lease is less, start to finish, that a purchase.
 
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sdorn

Director of Awesome
Supporting Member
Oct 9, 2016
1,041
1,057
Georgia
Generally, on EV's where tech changes on an almost daily basis, leasing is a good option. In today's very unusual market where manufacturers are struggling to build cars due to chip shortages, used cars are high in demand. But, even with Tesla's in the past, once new major functions were released on newer versions, the older cars declined significantly in value almost overnight. Most notably when AP1 came out. Then again when all cars were upgraded to AP2 hardware.

I've always done the math. For someone like me who is ready for a new car after 2-3 years, simple math always added up to a lease being lower in cost that a purchase when you simply add up how much you sent from the day you walked into the Tesla store to pick up the car to the day you turned it back in at the end of the lease. Leases have lower payments, lower down payments, pay less in sales tax and for many, that use them in their business, are better write off deductions. For me and my particular use, a 3 year lease always ended up being in the $5,000 to $8,000 range less than if I had bought the car, sold it and paid off the balance of the loan.

And more importantly, for someone like me that does go through cars every 2-3 years, it also protects you from the major value drops when Tesla releases a new feature that your older car is not capable of. In 2013 it was new battery technology. In 2014, was AP1. 2016, AP2. The prior models all took a hit in pricing. Also, add to that, the fact that Tesla can, and often does, choose to instantly reduce their pricing by large amounts. There were people that paid near $170,000 for a loaded Ludicrous P100D. Just a year or two later, you could get a fully loaded Ludicrous car for around $110,000. Those that financed their $170,000 cars still likely owed $130,000 on their 2 year old car when you could go buy a brand new one for $110,000. Those people got killed in terms of value when Tesla slashed the premium for the Performance version from $45,000 to $10,000. Leasing protects you from all of that as you couldn't car less what happens to pricing or new features or if the value on your car plummets.

Naturally, it's not for everyone. Those that keep cars for more than 5 years. Those that drive over 15,000 miles per year.

While not possible on the Model 3 or Y, at least with the S & X, you always have the option to purchase the car at the end of the lease. In doing my math, in the very unlikely event that I chose to keep my car beyond the three year lease period and buy it, the end cost, from day one until the day it was paid off has always been very similar to the end cost if I had just purchased it instead of leased it. Your price to buy the car is locked in. So you can always choose to buy it if the value is higher than the residual amount.

I like the leasing because it offers so much flexibility, better tax deductions and provides a zero risk aspect. Look at the Cadillac ELR (I think that was it?, the glorified version of the Chevy Volt). Those things sold for $70,000 plus and you couldn't five them away for $20,000 three years later. Leasing was clearly the better choice if you wanted one of those cars.

Another benefit, I've never had to worry about long term with my cars. Not that I do, because I have no need to, but if I wanted to, I could charge it to 100% every day and not have to be concerned about what it may do to the long term health of the battery.

I've always preferred true "luxury" cars. But, chose the Tesla for the past 9 years because I loved the amazing tech. I was willing to sacrifice the "luxury" items for the latest and greatest tech. Has been well worth it. But, for as often as that tech changes on these cars, leasing also makes it easy for people like me that always want the latest and greatest the car has to offer, to upgrade every 2-3 years without having to worry about being upside down in the loan, as most cars still are after just 2-3 years. Finally, the repair costs on a Tesla are astronomical if you're not under warranty. Leasing a car for 3 years ensures that I never have to worry about the cost of any repairs it may need. I'm always under warranty. I've been fortunate with my last few Tesla's in that they haven't seen the shop for any repairs. A couple minor things that Tesla sent out the mobile Ranger to fix. Thus, aside from just the cost factor of expensive repairs, a new car generally has fewer things go wrong than does an older car, therefore am rarely inconvenienced in having to take the car to the shop or deal with maintenance.

In the end though, all the other stuff are just cherries on top. The biggest decider for me has always been net cost from start to finish. For me and many with similar use preferences, the bottom line is, the three year cost of a lease is less, start to finish, that a purchase.
I was one of those people that leased a P100DL in late 2016 and the purchase price would have been around $180,000 after taxes. I was very happy to be able to just turn it back in to the bank (US Bank) at the end of the lease in 2019 when a brand new MS with Ludicrous mode was significantly cheaper. Although, if I remember correctly at the time my lease buyout was somewhere in the range of $85k - $90k which is about what a used P100DL sold for at the time. The drop in price for new cars had not hurt the used car market nearly as much as would have been expected.
 
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TPOD

New Member
Aug 18, 2021
4
0
USA
Yeah, the difference is, this OP is comparing this to their lexus dealer, which was probably just absorbing the lease end fees because they wrapped it into the new car deal (like many new car dealerships do).

At a traditional dealer, if they waive damage on a lease turn in when you are getting a new car, it generally means you left a lot of meat on the bone on the new car deal. In any case, none of that has anything to do with these lease end charges. I suspect the OP had what they thought was " a small scrape on the bumper" but it was larger than the allowable, and had tread under the allowable turn in limit.

The past due lease payment is either true or false, either the OP missed a payment, or they didnt. All that stuff is computerized normally, but tesla messes up so much other stuff its not out of the realm of possibility that the missed payment was a mistake / crossed in the timing of the vehicle turn in etc.

Tesla likely didnt just "make up" charges (although thats possible), so thats why I am guessing the OP had "some" damage to the front bumper that they expected to just be "magic wanded" away, and never even considered tread depth on turn for tires, even though the lease agreement for all makes will have that stuff in it.


Regarding the exterior condition, from the link on teslas website:

View attachment 693213
I had an opposite experience turning in my vehicle, they did not charge me for rim damage, 3/4 wheels had curb rash.
They also didn’t charge me for all the miles I went over.

This was pre pandy in 2018
Possible rim damage is common, the design allow the tire tread and side wall not to cover the rim.
 

TPOD

New Member
Aug 18, 2021
4
0
USA
Because I don't want to pay for a set of Tesla OEM tires at the end, whenever I lease my cars, I always buy relatively cheap custom wheels and tires for the car, generally pay less than $1,500 for wheels and tires. The original wheels and tires get put in the garage and sit there until I wear out the tires on the custom wheels and tires, which usually comes just a few months prior to my lease end. I use the stock wheels / tires for the last few months, but they generally have less than 8,000 miles on them when I turn it in, so I never have to pay the astronomical price for OEM tires. Also, for the same reason, I always go with the 19" wheels and save the $4,500 up front. Get my custom wheels and tires for $1,500 and that's all I spend, period. Essentially, I'm just buying cheap tires at the front end instead of at the end of the lease. $1,500 versus $4,500 plus a $1,600 set of tires at the end. Over $6,000 to get the 21" wheel option or $1,500 for custom unique wheels. Save about $3,500 every lease that way.
Yes very good idea, I have should have done this, at this point 38,000 miles I need new tires and my end of lease is 7000 miles away, lose out on the own tires,..Oem tire use a 70mm foam. Insert ( like a bed foam) glue it in. Do not have data on actual sound reduction this causes. If you need a plug…must remove tire to add a plug…remove the foam and insert the plug then glue back the foam other wise Tesla may charge high to plug it.
 

TessP100D

Member
Jan 15, 2018
508
534
La Quinta, Ca
Yes very good idea, I have should have done this, at this point 38,000 miles I need new tires and my end of lease is 7000 miles away, lose out on the own tires,..Oem tire use a 70mm foam. Insert ( like a bed foam) glue it in. Do not have data on actual sound reduction this causes. If you need a plug…must remove tire to add a plug…remove the foam and insert the plug then glue back the foam other wise Tesla may charge high to plug it.
Tesla isn't high on installing plugs. They are meant for a temporary fix and only depending on where the damage is located on the tire.
 

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